It is the sign of terrible incompetence to downsize people like him. If you ever get hold of people with this much competence then find a clever project for them, or create a new subsidiary.
No way I am judging the company, meaning Joyent. But Samsung Electronics owns them, so what I expect is they realise they sit on a goldmine of talent, and if Joyent products are not doing well then they reinvest that talent in something else.