I think actually (highlight to show):
it only reduces worldwide panic by 2 bars. Could just be a difference of Classic mode.
For myself, I just completed the game on Classic mode with 30 losses overall. The biggest problem for me was the strategy aspect. I think I had lost 5 or 6 countries by the end and China was also at 5 bars by the time I attempted the final mission. I was never sure if the playthrough was going to end in defeat or success, so I guess the difficulty was perfectly pitched for me. It wasn't Ironman, so there was reloading involved of course, but I mostly only reloaded squad wipeouts, from the start of the mission. Losing a single mission in Classic mode would have meant losing the entire game TBH, and I wanted to see the ending on my first play.
The game was a real, real bitch overall, but the Colonel-tier abilities you get really change the game. Colonel snipers are mind-blowing - both Double Tap and In The Zone are awesome to have, especially in conjunction with some of the abilities you get from late game armour. With skills like that I was struggling less and less as the game went on. I didn't lose any soldiers in the last few missions, although I finished a couple while soldiers were bleeding out (which saves their life). I also almost totally ballsed up the last few enemies in the final mission, which made for a tense finale.
Great, great game. My game of the year easily. I think I'll have a long break from it before diving back in on Ironman, though, because despite being addictive as hell it is pure tension and stress at every step.