Even in the US something like that would trigger labor law protections (generally it would be treated as a constructive layoff, triggering unemployment benefits and any contractually or legally obligated severance benefits), so this story seems more like a fable than something that actually happened. Do you have any more details about this?

EDIT: Europe generally has stronger labor laws than the US, so if something wouldn't pass muster in the US, it almost certainly wouldn't pass muster in the EU.