It all depends on what percentage actually get new job offers internally. If it's "most or all" then it's very different from layoffs. If it's "few to none" than it's very similar to being laid off.
"Pay and benefits for 30 days while you look for a job" this is called "garden leave," a severance package could also cover this. If my position is terminated & I'm paid out two months salary and they continue covering my insurance for 60 days, that's great, but I'm still terminated.
I'm not against this policy, I'm not even against layoffs in all cases. Sometimes you hire a lot, sometimes you cut, that's business. This policy does seem better than direct layoffs, but eliminating people's positions and making them apply for new jobs (with 30 days garden leave) is pretty damn near layoffs. What if no other teams have headcount, what would you call it then?
I was just commenting on the turn of phrase, not laying people off but 'terminating their positions and making them look for a new job.'