Seeing as CEP500 hasn't come back, and it was his first post anyway, it's more than likely the guy wasn't working as well as management hoped he would, and they gave him his marching orders.
If it's just the one guy being layed off, it happens all the time.
I ran a company of over 600 employees, and I can tell you that sometimes, it was like a revolving door.
So many people come in with fantastic resumes, and after a few months, you discover it was all fairy tales.........
I'm not saying that was what cep's friend did, but in business, people move on or get moved on.
It's the way of the world.