It does. But if you do the opposite, the layoff is likely to still inspire those best people to start looking on their own if they did not already do so before.

It does. But if you do the opposite, the layoff is likely to still inspire those best people to start looking on their own if they did not already do so before. And they are the ones most likely to find something and follow through. Layoffs often have an echo effect, where a wave of layoffs is followed by a wave of resignations. Open offers fold that second, unpredictable wave into the controlled first one. If the nature of your business requires a certain amount of workforce continuity, the added predictability of an open offer can be well worth it.