Because employers see how some employees act as they depart, even though they don't act similarly around their coworkers. Employers also see trusted employees smile and leave for competitors even after signing that they would not do that. Employers are right to suspect departing employees, because some steal information or otherwise cause issues before they leave.
> So it troubles me a bit how quickly the C Suite prioritizes having a giant switch to lock people out.
I've seen dozens of systems that had to be accounted for when an employee left. Almost all of those systems required separate action to remove the departing employee, plus follow-up checks that sometimes had to be from humans.
It only makes sense to have your employee separation procedure get automated, and during automation it makes sense to communicate with one system instead of communicating with 30 systems that each respond in different ways - some of which require human intervention.