An emergency fund and a severance package are great things for keeping the lights on while you look for a new role, but the point is that $200k + $200k in bonuses and RSUs is a hard thing to replace when all the other big tech companies are also laying people off and going on hiring freezes. You're probably going to end up taking a serious pay cut in you next role. Even if you have a full year of your old salary in the bank, you might well find it hard to maintain you previous lifestyle, pay your mortgage, or replace your emergency fund if you have to live on it.

Four months severance is only good if you find another good role within four months. And in the current tech market I wouldn't bet on that.

Something else to consider - if there are a ton of engineers entering the market who are willing to take a pay cut what impact will that have on everyone else in the market? This sort of thing is what drives everyone's wages down.