They have 2 months to find new employment otherwise they need to leave country. STRONGLY recommanded to contact immigration attorney for legal alternatives.
I have been through the same very recently myself. Do not panic. You have 2 months to look for a job. Keep applying and interviewing. As a backup, talk with a consultancy who can transfer your H1B. While that is being done, continue your search.
60 days is not a lot of time to get your h1B transferred as well. Was your transfer approved within that? With the new RFE trend, it seems impossible
The h1b transfer needs to initiate within 60 days period. Once under processing, you are off the hook.
What happens if you get RFE and it doesn't get approved?
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