Because companies have no obligation to provide severance, they often offer it as part of a larger exit agreement that contains other terms. This really limits

Because companies have no obligation to provide severance, they often offer it as part of a larger exit agreement that contains other terms. This really limits the laid off employee's ability to negotiate because the company can basically say "take it or leave it" since they know how valuable severance is to someone in that situation. That is how they get away of forcing people to sign non-disparagement agreements and to give up their right to sue.