[jfarmer]

First, the author is talking about startups, not companies which might have reason to lay off thousands of workers or whole teams.

Second, in a startup, it's probably worth getting an employee to sign a separation agreement even if they were terminated for cause. Part of that separation agreement will include a release of claims, making it impossible for the former employee to return after the fact and dispute the cause of his termination.

This makes it possible to say "There are no former employees who might come out of the woodwork a sue us for wrongful termination.", e.g., while fundraising.