I spoke to a couple of really frustrated Nokia employees. It seems that they are not going to get fired at the moment, not even that they are working with MeeGo development. However, their sentiment was that they actually hope that whole Nokia gets destroyed because of the WP7 strategy, even if it eventually would cost their own jobs. They feel that they never really got a change to prove what they can do.
They hope that MeeGo succeeds in the hand of some other manufacturer.