I ran into a slightly different situation. I had stage managed with a company for the last five years. Three years ago we moved to a new theatre and doubled the SM team--both were full SMs, but one of us called the show and the other ran rehearsals and backstage. We did one production annually--an educational show we repeated with most of the same cast. We have often incorporated high school students in the production, this year using kids from the local arts high school, where I also work.
This year I had been scheduled to SM again, in fact, I had been told that this year I would be doing it all alone. I had talked to the director/producer, whom I had worked with for all 5 years, many times about prepping for the show. Leading up to the time we were supposed to start rehearsal I had asked him multiple times for the revised script (it changes a bit every year) and an official start date and he kept "forgetting." He can be a little distracted, so I wasn't surprised, though I was a bit frustrated. Then, one of the actors (I'm friends with most of them) mentioned that they'd been doing a few rehearsals and asked why I hadn't been there. At that point I confronted the director and asked him why I hadn't been informed about the changed schedule. He told me,rather sheepishly, that the show didn't have as much money in the budget this year and that he couldn't afford a stage manager, especially since he could use some of the tech students from the high school to stage manage for free.
So, at this point I was annoyed, but I understood. The show has always had money troubles. I talked to my friends in the cast and they all said things were much less organized, but everyone knew about the money problems (it's a very open group).
Things got weird after the show opened. I had planned to see the show, just to let everyone know I still supported them. Before going, I was talking to one of the students teching the show and he mentioned something about the other stage manager. I was confused, since supposedly there was no money for a stage management staff, but I didn't want to jump to any conclusions. I went to see the show a few days later, and, lo and behold, the other stage manager was running the show.
Now, the two of us are friendly (not friends, but we work well together), and I certainly don't begrudge her the job. What has upset me about this whole experience isn't that the producer decided to hire another person--that's his right--but that he had neither the personal nor the professional honesty (we have both been friends and worked together for five years) to tell me. I probably would have been mad but there were no contracts signed yet (usually done on the first day of rehearsal) and I would have eventually understood.
I'm sorry if I've ranted a bit, but this only happened a few months ago and I still haven't really figured out how to, or if, I should confront the producer. It's a little different from being fired during a production, but it feels a lot the same.