Well, no dice. They gave him the crappy lower position. We don't know yet how much the pay is going to be, but he did say the position caps out at close to what he is making. So hopefully they won't cut his pay too much.
He also said that they gave him a letter saying he'll continue to do his current job until April, so I'm guessing that means he'll also continue earning the same pay until then.
Whew. It could be worse. At least he has a decent amount of time to try to find a new job.
Thanks for the well-wishes everyone.