Probably because the company's manager is a massive cheapskate.

Maybe they were slacking off, boss takes photos to encourage a fun relaxed environment and then proceeds to fire them.

I was thinking they meant laid off, and are still maybe frustrated that they got laid off?

memorial photos

I guess because the company thinks that what people do in their free time is their business

@9: You do need consent to use photos for advertising purposes, but with pictures taken in the office or at company events consent is already implied. Some companies go so far as to add consent clauses to their employee hiring paperwork so no one can complain about their image being used for corporate promotional purposes. So there is probably nothing OP can do about the picture. UNLESS the picture wasn't taken at the office or at a company event. If the employees just got together after work and posted their group pictures from dinner to facebook, the employer could get in trouble for using personal photos without permission.

Theyre technically using the photo for advertisement purposes though sooo maybe a stern legal approach would work? That or I know the canada and the states there are websites were you can review your employer.

Are you about done with being proven wrong?