He had been successful and highly paid, but new management came in and decided he wasn't needed, and fired him. That kind of thing doesn't happen much in Europe because of strong unions, laws that make firing expensive and difficult, and a culture that disapproves of such things. Thus if you're looking for a job, personal connections matter more in Europe than in the U.S., I think. Internships are not as common as they are in the United States, so it's even harder to get a foot in the door. Given the difficulties in getting rid of workers, this emphasis on personal connections makes some sense.
Individualism is one of the most striking factors of working culture in America.
In Europe it is also significant, but there's also a lot of bureaucracy. At Glasmaschinen, every time I needed some information or a form signed I would have to go through so many people that by the end the information had lost its value or I'd gotten annoyed by the whole process. Both have their good and bad sides. The important thing, I think, is to recognize and be familiar with differences like these when entering the business world. And you should go and share what you learn with others, because teaching is an important part of your own education.