Tech company I worked for implemented a bastardized version of this purgatory firing model. Basically a manager/director is told to cut budget and is forced to build a list of people whom will be let go. From there he/she is given a date that the layoffs are meant to happen. It is then up to that manager/director to go around shopping for new roles for the people who are meant to be laid off. He/she contacts other managers, asks that the conversation remain confidential, and asks if the other manager has any open headcount.

Where it gets really weird is that other manager might decide to layoff someone from their team, for example a low performer, to make room for a higher performer that original manager is having to let go. The whole process is done very behind the scenes without effected employees being told. Finally when firing day comes the employee is basically told they are fired but have the option to "apply" for this other role.

Unclear why this company does not do it out in the open like Google and Facebook have chosen to do.

Edit: fixed spelling