I get what you're saying about them already being Google employees, but this feels like a loophole and not a material difference. I could see this being exploited if there ever were offshoring rules. Just hire your offshores a month or two ahead of time.
That said, I find that most sensitive managerial decisions aren't fully explained right away, if ever. I don't expect someone in this position, especially upset by the change, to know the full story. There's possible extenuating circumstances, such as team performance (even the manager was RIF'd).
This really doesn't make any sense to me. When I was there python was a pretty big part of the google internal ecosystem. Each major language there had a team supporting it. Not sure why you would be gutting those teams.