Because employers want you to sign a general release of claims, non-disparagement agreement, and/or other agreements when being sent off, and those aren't binding contracts without something in exchange.
And because, in many industries, to avoid hard feelings—if you aren't being let go for cause, especially if you have networks in a high-demand field, they want you giving positive or neutral referrals, not negative ones. And as things shift, they might even want you back.
And because the practice maintains the incentive for loyalty when company performance gives reason to expect imminent layoffs: if you don't give severance, the financial cost of quitting or being fired compared to being laid off is smaller.
Because employers want you to sign a general release of claims, non-disparagement agreement, and/or other agreements when being sent off, and those aren't binding contracts without something in exchange.
And because, in many industries, to avoid hard feelings—if you aren't being let go for cause, especially if you have networks in a high-demand field, they want you giving positive or neutral referrals, not negative ones. And as things shift, they might even want you back.
And because the practice maintains the incentive for loyalty when company performance gives reason to expect imminent layoffs: if you don't give severance, the financial cost of quitting or being fired compared to being laid off is smaller.