with the employment office in your area and see what your status is. Or for that matter a lawyer. You may be able to quit and collect unemployment. If so I would consider doing that. If you can sue him for hiring you under false pretenses you might consider doing that. At minimum I'd being looking for another job, as this one is going to be the next one to go under as all the people who know what they're doing go someplace better.
It sounds like a sleazy place to work. I don't blame them for having to restructure, times are tough. I do blame them for not telling you when they hired you that they might have to do something like this. I was laid off last spring by a sleazy outfit, and frankly I'm glad I'm done with the place.