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Cancelled placement after sigining contract?

Hi,

A friend of mine had signed a contract with a Belfast estate agency in November 2008 to work for a placement year with them starting on the 18th June 2009. Today she recieved a phone call from them saying that due to "economic circumstances" they are having to reduce their placement intake from 6 people to 3.

This was 3weeks before she was sure to start the placement? Is this an acceptable thing to do and is it actually legal?
This has been made worse as getting this placement so early caused her not to attend any other interview for placements and to have housing organised for university next year in Newcastle upon tyne.

Could anyone give me some advice for my friend on what could be done if anything? Or can companies get away with this, never mind the fact that they called her to tell her 2hours before her last university exam!

Thanks
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