Earlier quoted context omitted.
A 'normal' company would understand that while a persons significant other is dying of a cancer, their work output may suffer as a result.
He was offered a Family Leave option, but the details aren't shared so it's hard to judge... Terrible situation for the author, but expecting the company to eat the 500k/year he was costing them doesn't seem fair either.
I would assume his output wasn't 0, so the economics are hard to justify. A typical engineer earns many times their salary in revenue for the company. So, maybe this guys was low performing, but maybe that works out to a wash in terms of revenue per employee.
Or maybe, Amazon says "actually, losing $500K to retain good people isn't that bad every so often" -- how many employees can realistically be in the situation? 100 a year? That's what, $50mm...nothing to Amazon in the big picture.
Obviously there comes a time when you need to fire people, and we don't have the full picture. But it's also not like this money really matters to Amazon that much either.