If this is true, Cheveldayoff has to go, as does Quenneville.
As far as whether or not it hurts the Jets, we'll never know. Cheveldayoff was a good GM (in my opinion, anyway), but he was hardly the only good GM. We might even have someone in the organization now that's learned all the tricks and can take over.
The thing is, though, that if this story is true and Cheveldayoff goes, it will reflect positively on the Jets organization, and that will be remembered going forward. If the Jets don't do the right thing, that will also reflect on the organization going forward, and that's what will be remembered in the future when people look back.