I did my undergrad (BSc) in the US and then came to Switzerland for grad school. In some ways, this initiative seems to split the difference between these two systems.

In the US, I've seen people start PhD programs with a BSc degree and take 6-8 years. I've encountered many engineering companies at job fairs who said that for them a PhD is a disqualifying factor for many positions, because the experience is not relevant but they would need to (or felt obliged to, for whatever reason) pay extra for this degree.

In Switzerland, people would do a 1.5-2 year MSc degree after their BSc. This would still be mostly classes with one 6-month-long research / technical project. This was the expectation for many technical jobs. Some then did a PhD, which would take 3-4 years and required to have a MSc already to apply. Many of these projects (at least in my field) were sponsored by the industry.