I think to certain extent it comes down to panic and chaos in the HR department. A chunk of people are fired, others quit or move to new positions. Projects are

I think to certain extent it comes down to panic and chaos in the HR department. A chunk of people are fired, others quit or move to new positions. Projects are cancelled. That has consequences for supervision of interns and would probably incur significant rescheduling and organizational overhead. So I see why something not considered "primary business, contributing to the bottom line" is simply cancelled. Not great, though.