It says they're "irretrievable", which isn't necessarily the same thing. That you can't get that data back doesn't mean it's no longer stored by Slack in a way that a sufficiently severe compromise of their infrastructure might reveal.
It probably means the data is encrypted at rest and they discard the encryption key. Of course I doubt we'll ever know because they won't give us that level of detail unless they are compelled to.
At the time, there were reasons we couldn't completely delete the workspace. I believe there was certain data we wanted retained, and other data we wanted removed.
https://get.slack.help/hc/en-us/articles/204067366-Delete-a-...