This does not say you can't lay someone off. What it says is that you can't RIF the team. You can fire people and hire others, possibly much cheaper others.
You can't hire cheaper others because of the "same or higher compensation" bit. The only reason to fire anyone from Scoot is if they're genuinely not good at their job and you can replace them with someone who performs better at the same pay.
IOW, this is a very weak requirement.