Maybe it was the right decision at the time to lay them off? I think that's why he got the bonus, actually! I'm sure the layoff was difficult for him as well: he certainly lost a lot of goodwill with his workforce and I'm sure the internal politics were tricky for anyone involved.

No one is getting "punished" - there was no promise of ten years of employment from Google. Like when an employee leaves, you wouldn't say they're "punishing" the employer.