What regulatory scrutiny do you mean? They don't need to provide severance, as far as California law seems concerned. I'm not a Californian, but an Internet search shows they're an at-will state. So it seems like everything is on the (legal) level.
California has the WARN act which I believe requires notice of 50 days, which people usually use to give severance. In the USA when someone is told they will be fired, usually we do not keep them on staff so severance is the usual middle ground.
It's 60 days, not 50. But 60 days of severance would be significantly less than what they are offering. They're definitely not doing it strictly to avoid regulatory scrutiny, more like to avoid bad press and a bad reputation in the tech market. When things eventually swing back up, companies still want to be able to hire the best talent, they don't want to be grouped with companies like Twitter.
