If All Else Fails Retreat
If it becomes obvious that your current course of action will lead to defeat then retreat and regroup.
It's certainly OK to cut your losses and regroup. Even in a poor economy, there are jobs available. If you have time to find another job before the axes falls, all the better. If you're trying something politically risky, sometimes it helps to be looking for another job in case it backfires. Just make sure that if your current company would badmouth you to a prospective employer that they don't appear on your resume. You can encapsulate that experience into "contract employment" or roll it into another company altogether. But never give up too soon. Even if laid off, that's not forever. One of the Fairies talked her way back into being re-employed by the company that laid her off a mere six weeks earlier!