Hard to say based on what you have described if downsizing really did or did not occur - other than to relieve your husband of his job. It is always possible that 2 jobs were combined into one. It is increasingly more difficult to sue for wrongful termination as mcuh weight is given to the interest of legitimate business practices and at-will employment has become the norm. If, however, there is apossibility that he was let go to deny him of vested rights (such as retirement, etc) and the company has a pattern of this - he could have some legal issues here.
He may want to consider at least a consultation with an Employment Law attorney - who can explore the purpose behind his termination and decide if he has some legal recourse.
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Please note that these comments do not constitute legal advice. It is always recommended that you consult with a local attorney, who can explore all the facts and issues of your specific situation and then advise you of any legal rights and remedies you may have under the current laws of your jurisdiction.