He's saying that if Google wanted another way to present themselves as a progressive company, they could fire everyone who works for them doing a marginal job a

He's saying that if Google wanted another way to present themselves as a progressive company, they could fire everyone who works for them doing a marginal job and replace them with contractors. This would allow them to set a higher minimum salary and pretend that they are very generous. In reality, they would have fired a lot of people and the contractors would be worse off than they were as employees and this would all have been a cynical ploy to appear good while really being evil. In other words, OP is being cynical about whether this company policy is really as progressive as it's made out to be, or might represent a dirtier trend.