You are forgetting there are close to 600 driver who have pink slips and there is a time limit for notice to take effect for them. By removing all routes now, what do you do with 600 extra drivers, other than paying them to sit on their ass doing nothing? Cheaper to have them on the road moving riders and keeping riders happy.
Is the number really that high? I was under the impression that while there were going to be some layoffs, most of the buses (and the drivers that go with them) were going to be re-assigned to boost frequency on routes that feed the LRT.