Earlier quoted context omitted.
I've fired people and later recommended them for jobs where they'd be a better fit. Not uncommon at all.
My immediate thought. Relatively few have been in management here, perhaps.
The concept you could fire someone for business reasons and later be their very good friend and recommend them for another job - sometimes an even better one than you employed them in - doesn't fit the single-input single-output mind of a lot of engineers.
It's alright. We all have roles to play.