[jcrites]

Doesn't the budget to pay these people already exist? They are current employees, after all. Their terminations will still shrink the budget, just not as soon as a termination without a severance package.

Maybe there are some legal differences in offering what would otherwise be wages as a lump-sum payment, but the budget for those wages already exists (else they could not be employed).

[paulddraper]

Correct.

The only thing would require more budget is hiring backfills (while paying out the leave).

Supposedly, they can get the same work done with fewer people.