They did not offer everybody to move to a different department. They did offer a that to a lot of us, but not to everyone. Most of those of us left were offered severance packages (which were said to be voluntary, but AFAICT most of the people who got offered one in the first round took it).
I just don't understand what kind of crazy thinking would go into this.
It sounds like most of the engineers simply didn't want to move from core render engine and javascript interpreter development to more front-end client development.