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).