[lstyls]

It's called a severance package. The company isn't giving you money to quit - you're working at-will and they can terminate your employment at any time for any reason. The amount is usually equivalent to a few months worth of paychecks.

What they pay you for is you signing away your ability to sue for wrongful termination. Because they can't really fire you for any reason.

[humanrebar]

It's also because companies want the managers and co-workers to know the company did right by the terminated employee. Laying someone off isn't fun. Seeing your co-workers get laid off isn't fun either. Severance keeps the process more humane.