You indicated that you are concerned about the way he is trying to find another job, but the truth of the matter is that he is not trying to find another job. By applying for jobs that are out of his reach, particularly in today's labor market, he knows deep down that he is not going to get the nod.
It actually sounds like he has not adequately dealt with the layoff, and he is probably experiencing a fairly strong combination of sadness, resentment, guilt, and embarrassment, all wrapped up together. Since he can't or won't talk to you about this, you should try to encourage him to talk to someone else.
For example, there are outplacement professionals who could provide him with some help and guidance, and there are many support groups for individuals who are going through similar situations. There are also some outstanding executive coaches, along with career counselors and organizational psychologists who could help him.
He has been derailed, and it sounds like he needs some outside support to get back on track.
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