So severance but they have to keep working too? Seems rough. Hard to imagine anyone in that situation would focus on working for their soon-to-be former employer.
In Denmark, depending on how long you've been with the company your employers contract termination notice period can be anywhere between 1 month (after 5 months with the company) to 6 months (after more than 8 years and 6 months with the company).
Also, most commonly, if the employee is the one terminating the contract, the notice period is 1 month (although it can be negotiated higher for key employees).
It is understood that your motivation will plummet when you're terminated, but you're still expected to maintain your responsibilites, and eventually, hand over your obligations. But you're also allowed to go to interviews during and if you get a new job your own 1 month termination warning will count.
I've experienced that some employers will offer garden leave to the affected employees, as in they don't have to work or show up daily, but they will hand over responsibilites immediately and be available if there's any questions.
There are a few edge cases where folks will be working through that period and contract with us afterwards in different/new roles, but impacted employees are not expected to work with us during that period.
Maybe trying to game unemployment insurance rates? If someone is employed they can't go on unemployment, hopefully in two months some of them find something new driving down your costs compared to firing them and having them apply right away?
It's a pipe dream if they think anyone laid off will be putting any effort in.