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What is the first in first out rule? Does it mean that the people that joined the latest will be the first ones to go? And also is this a law or something that usually happens but not necessarily? Asking because I work in Sweden and I was not aware of something like this.

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(S)he was wrong. There is no first-in-first-out principle in Sweden, neither by law nor by practice. Instead the last to enter _may_ be the first to leave, but the employer can choose to withhold two persons. Also, this arithmetic is determined per "office" so depending on how you organise the workforce you can, at least in principle and to some degree, select who has to go.

Yes last-in-first out. My guess here is that they need to figure the points out that you mention so it's hard to say "we're letting X amount of people go".

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