I think this gets to the heart of the difference: Americans tend to think of their employment as a continuous exchange of dollars for their labor, whereas most of the world takes the concept of an employment contract to heart.
That contract, in turn, contains both legal and contractual stipulations that prevent firing without cause: employers must give you so-and-so many weeks of notice before beginning the process of firing you, must pay you for so-and-so many months if you present an argument to a labor board, &c. There's nothing informal about it: it's the difference between continuous billing for a service and a fixed-length contract.
Here's a random PDF I found that explains some of the difference between US and French labor contracts[1].
[1]: https://www.bakermckenzie.com/-/media/files/insight/publicat...
A virtualized server from Amazon does not need food, clothing, and shelter to survive. It does not have a family to support. Simply, it is not alive. and laws around humans and commodities should probably be very different.
More cold-hearted practical arguments for businesses: the virtual machine cannot vote in the next election, it cannot contact the local news media to complain about working conditions, it cannot unionize. If things get very bad it cannot buy torches and pitchforks.
Your boss does.
How does this work elsewhere in the world? From a legal point of view at-will employment seems like the default when it comes to buying a service (ie. labor). If you rent a server from amazon you can stop the rental anytime you want, and they can kick you off anytime you want.