More than likely it was that he didn't brownnose enough
with the managers. That pretty much will do it when downsizing comes around or they tell the PHB managers "fire X people, or you get fired" so guess who they get rid of first? Those that are not their "friends". Plus the new guys almost always get it, unless they can screw someone out of a pension that has near five years with the company, or they got someone who they just donn't like for some reason. Since he was a new guy, they most likely didn't renew his contact or something.
"In order to completely solve a problem, you must make sure that the root of the problem is completely removed! If you leave the root, the problem will come back later to get you." - Norman King