As an employer, I've dealt with helping people transition out of a job that has disappeared or turned out not to be right for them. I tried to do what this woman did - give the employee some extra time on my dime to find new work. If during that time that I'm paying them to hunt for a job (which costs me thousands of dollars a week, typically), if I need them to lift a finger to do something, I should feel guilty to even ask?
If I took the flip side of the attitude of a lot of people in this thread, I'd just fire an employee with minimal severance the moment he isn't making me money. That would suck.