Should they have fired another person instead just because of location?
I believe they should have not given the GO at all to the hiring manager, but hey... these CEOs nowadays like to take full responsibility accountability blabla-ility for their actions :)
Some years ago I worked at a company that had to fire 3 people. They picked one of the guys that was still on probation time (like ~10 days before the end of probation).
This person came from South America, and the worst part of it was that he decided to get his family here after a few months, because "you know, I came alone so that it's easier to find an apartment, to have bureaucratic things sorted out, etc.". Yeah. Then the family came and boom, fired.
Why did they hire him in the first place? I believe that this is what many companies do wrong.