I had a new boss come in the company I worked for a long time. He immediately hired a friend and a friend of a friend. He changed my job title to something where he couldn't even explain exactly what my job duties would be. He said in writing, that I would end up doing more of what I had been doing, but that never was the case. My boss ended up hiring 3 people to do the work I used to do (and worked crazy unpaid OT hours to do), and then laid me off because my new job tasks were next to nothing. One of the employees hired as a "senior" person who was technically above me, was far below my technical skill level and I had to train him to do his job. I had no personnel issues or bad employee reviews.
Real Estate Attorney
Unfortunately for you, CA is an at-will employment state. The employer can fire you for any reason or no reason, just not an illegal reason. Hiring friends may sometimes be a stupid reason, but it is not illegal.
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Lawsuit / Dispute Attorney
The employer can fire you for any reason or no reason, just not an illegal reason. You need a lawyer. Check with a lawyer in your locale to discuss more of the details.
Good luck to you.
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It sounds like your new boss has made some financially stupid decisions so that he could hire his friends, but unfortunately it's perfectly legal to a boss to hire their friends and relatives, and if you had no union or written contract and were "at will," the boss can fire you without notice and without reason.
Such is the pro-business capitalistic society we live in, unlike, say France, where the workers have real rights.
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