That's called being fired. I don't think that it is defined that you do or don't get definitive recall rights when you look those words up in the dictionary. best I could find was wikipedia for "layoff"

"Layoff is the temporary suspension or permanent termination of employment of an employee or (more commonly) a group of employees for business reasons, such as the decision that certain positions are no longer necessary or a business slow-down or interruption in work. Originally the term "layoff" referred exclusively to a temporary interruption in work, as when factory work cyclically falls off. However, in recent times the term can also refer to the permanent elimination of a position."

Anyway, sorry to hear your friends being shown the door