The open secret is that layoffs are also used as a gentle way to fire low performers.
By including people in layoffs, you can give them a potentially very generous severance package and you allow them the courtesy of saying they were laid off as opposed to being fired. They get mixed in with all of the good performers who were laid off due to budget cuts.
Putting a lot of restrictions on a company that does layoffs creates a perverse incentive to fire these people explicitly instead of giving them a gentle landing with a layoff. You would see far more people fired instead of "laid off".
At the extreme, you incentivize companies to start firing people to make budget cuts.
So, this is actually a very bad idea. You do not want to start putting handcuffs on companies who do layoffs instead of constant firings.
From everything I've seen, the much more common reason is that firing someone typically entails a much longer paper trail for CYA reasons. Batching them up and including them in the next round of layoffs is easier and safer.
Given that we long since decoupled terminations for being based on performance, I'd rather employers just be honest.
But they won't do that because they don't want any risk of lawsuits. Even if they are truly low performing, firing a pregnant woman or someone who happens to be an outlier race in the company is just too easy a setup for scrutiny. I've seen plenty of those kinds of people mixed up in these layoffs as well.
Usually there’s a layoff list with a timer.
Because most people after a few years of experience do not simply "suck" in a vacuum. If you need to get rid of 2-3 people it might be a "suck problem". if you need to get rid of 200-300 people it's a more systematic issue or incentive being driving such mass actions.
If a corporation lays off any people in a particular job category/title, that corporation should not be allocated ANY H1B visas for that job category/title for the next year.
If a corporation institutes any policy that requires decimation (or any other statistic-based termination program) of employees with a particular job category or title, or if IN EFFECT they perform this (because they will just hide it otherwise), then they will not be allocated any H1B visas for that job category or title, for the next year following any such act.
In essence, the point here is that if a corporation decides it can live without X% of their workforce, then they don't get to go bring in foreign workers. The H1B program is to help find workers for positions that can't be filled; if you're laying off or mass firing people then obviously you CAN find people to fill those jobs.