From the article:
The second conversation took place in 2002, a few months after our IPO. Laura, our bookkeeper, was bright, hardworking, and creative. She’d been very important to our early growth, having devised a system for accurately tracking movie rentals so that we could pay the correct royalties. But now, as a public company, we needed CPAs and other fully credentialed, deeply experienced accounting professionals—and Laura had only an associate’s degree from a community college. Despite her work ethic, her track record, and the fact that we all really liked her, her skills were no longer adequate. Some of us talked about jury-rigging a new role for her, but we decided that wouldn’t be right.
So I sat down with Laura and explained the situation—and said that in light of her spectacular service, we would give her a spectacular severance package. I’d braced myself for tears or histrionics, but Laura reacted well
[...]
[Talking about another employee that no longer 'fit']
Give her a great severance package—which, when she signs the documents, will dramatically reduce (if not eliminate) the chance of a lawsuit.”
Folks - remember the snippets above in your dealings with any company. This is the nature of the employer-employee contract these days.
A spectacular severance supposedly balances out any disquiet at 'pump-and-dump' treatment of employees. Of course, "spectacular" may mean they pay $4,000 instead of $2,330.02 legally due - i.e. 200% of something which probably won't get you very far in the first place. And 'extra' documents they have you sign as a quid pro quo, also sign away review rights regarding unfair dismissal, etc.
Everyone working for someone - and I mean everyone - needs a backup plan to create wealth. Not an MLM - something where you get paid to create actual value. This could be selling cupcakes off your Facebook page, freelancing on guru.com, selling artwork on odesk.com, tutoring math classes, mowing lawns... Even if you make only $10/month, its a skill kept sharp for when you really need to depend on that next arrow in your quiver.
Before doing this, check your work contract - and speak with your attorney. Many jobs - specially IT roles - have a catchall 'all your efforts/patents/ideas/code belong to us' clause. Even for what you do on your own time and dime. Such clauses may or may not be lawful.