Picture a small product team, the dev side of it has 1 tech lead, 1 recently promoted senior dev, 1 junior dev.

1 - Offer your tech lead a severance package
2 - Hire a mid-level and a junior dev
3 - Give the product lead role to someone in their mid-20s that has no tech or project management background
4 - ???

The next 6 months are going to be interesting ones...