I was let go from my last job in 2010 because my employer couldn't market my skill set very well. They offered to help me get a job at another company. I said thanks, but no thanks. Instead, I started my own consulting business and earned more in my first year than the 6-figure salary I'd lost. The following year I did far better. In the years that followed, my income has always been higher than the salary I'd lost, and usually by a lot.

As for your boss, it sounds like he didn't get a very good description of what his boss actually wanted. Unfortunate, but not too surprising.