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I get an uneasy feeling every time I hear it. It twists the situation around, like you said, to make it seem like they are doing a great benefit to the employee.

My all time favorite ridiculous doublespeak is "we reached out to the employee and let them go". I heard that once from a company's pr dept. after firing a worker due to some public scandal.

It’s more like they are dangling over an abyss and the person holding them up lets go.

Fired implies that the employee did something wrong.

Let go is a euphemism for made redundant/laid off. I do agree that it is a euphemism.

In my experience, let go is a euphemism used to avoid saying if they were fired or made redundant.

It honestly reminds me of The Giver. They're being released.