Yes. It makes it easier for them to hire down the road. If you know there is a parachute waiting for you, it’s easier to take a risk on joining the company once

Yes. It makes it easier for them to hire down the road. If you know there is a parachute waiting for you, it’s easier to take a risk on joining the company once it starts growing again. But I suspect it’s mainly as a carrot to sign the NDA/non-compete/whatever else they want you to sign to keep not talk about what happened.