Basically, companies are required to pay for unemployment insurance that funds the government’s unemployment benefits system. If you lay someone off, the employee files for unemploent, and gets paid a portion of their weekly salary while they look for another job (the amount you get paid and whether there’s any additional requirements varies from state to state, with Democrat-controlled states usually being more generous, but generally you have to show you’re actively seeking a new job), and the employer pays a bigger unemployment insurance rate to compensate for the additional burden the former employee is now placing on the government benefits system.
However, if you’re fired for cause–say, you get caught stealing from the cash register–then the employer can contest your unemployment. If the employer can show you were fired for a good reason, the employee can be denied unemployment benefits, and the employer doesn’t have to pay extra unemployment insurance. This meeting is the company trying to cook up a justification for firing with cause, and the employee trying to get them to admit they’re just being laid off, because if the company admits during the exit interview that she’s just being laid off without cause, it’s nearly impossible to contest her unemployment benefits claim later.
The problem is that there’s no incentive for employees to stay beyond a few years. Why spend months or years training someone if they leave after the second year?
But then you have to question why employees aren’t loyal any longer, and that’s because pensions and benefits have eroded, and your pay doesn’t keep up as you stay longer at a company. Why stay at a company for 20, 30, or 40 years when you can come out way ahead financially by hopping jobs every 2-4 years?