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Just think of the money saved in severance by them quitting instead of being fired, which is probably the plan all along.
Never quit, make them fire you.
This is the plan, but it's always a bad one. The people hopping jobs are the top performers, ones with marketable resumes that get snapped up even in a weak market. The ones forced to remain either feel less marketable or are less marketable for a number of reasons.
It's extreme short term thinking that leads to both morale and performance issues sooner than leadership expects.
This is often, but not always, Constructive Dismissal. When it is, workers are entitled to severance but need to jump through some hoops with the NLRB to get that money.
Sure but the high performers are usually the first ones out the door. That’s arguably gonna cost them more in the long run but who cares about the long run when this quarter’s profits are so high.