What was the problem? If it was lack of currency, or poor flying skills, I would suggest getting current through flight instructing or renting. If that wasn't the problem, tell him to give it another shot somewhere else.
I know two people who failed out of a training programs and were hired by another regional. They were having problems in their personal lives and didn't have the focus they needed. Both were successful the second time around and are now flying. The key for them getting hired was they were honest about what happened when asked during the interview. I would tell your friend to brush himself off, and get those resumes out. In this day and age, it's not the kiss of death it once was by any means.