Does shrinking a SQL Server transaction log remove transactions from the log?
"Shrinking" the log is actually "clearing" the log.

The log is basically a list of operations that have been performed, and is used as a reference for rollbacks, restores, checkpoints, etc.

The space wasn't "unused" but it contained transactions that had been committed and were reflected in the backup that was performed.

Your boss cleared out all the transactions in the log file, but since you had just run a backup this is acceptable since none of those transactions were uncommitted.