Firing someone is one of the hardest parts of running a business. No one starts a company or builds a team thinking, “Can’t wait to let people go someday.” But the truth is, sometimes you have to.

Maybe they’re not doing the job well. Maybe the business has changed. Maybe they’re great people, but not the right fit for the role anymore.

Whatever the reason, letting someone go is never fun. But doing it poorly can leave scars on you, the person you’re letting go, and the rest of your team.

So how do you know when it’s time? And how do you handle it in a way that feels human and respectful? Let’s break it down.

How to know when it’s time to fire someone

This is the part a lot of founders struggle with. They wait too long because they hope things will magically improve. Here are a few signs it might be time:

• They’re not performing, even with support
• You’ve given clear feedback, extra training or second chances — and nothing changes
• They hurt team morale
• They’re not the right fit for the role anymore
• They don’t follow your company values

Before you make the call

Before you fire someone, ask yourself:

• Have I given clear, honest feedback about what’s wrong?
• Did I give them enough time and tools to improve?
• Do I have documentation if I need it (legal and practical reasons)?
• Is there another role they’d be a better fit for?
• How will this affect the rest of the team?

If you can honestly say you’ve done what you can, it might be time.

How to fire someone the right way

There’s no “perfect” way to have this conversation, but here are a few things that help:

• Do it privately and directly: No public blindsides. Find a quiet place. Be calm, clear and kind.
• Keep it short and honest: Avoid long speeches or debating old issues. Example: “We’ve talked about the performance goals for the last two months and unfortunately they haven’t been met. We have to end your role here.”
• Be prepared to answer questions: They may ask about final pay, references or next steps. Have details ready or a contact person who can help.
• Show respect: This is still a person with bills, feelings, and maybe a family. Be kind and firm at the same time.
• Communicate with the team: Let your team know quickly, without gossip or blame. Keep it simple: “We’ve made a team change. Here’s how we’ll handle the work going forward.”

What happens next

After someone leaves, you might feel a mix of relief, guilt and doubt. That’s normal — it’s part of being a leader.

Use the moment to check in with your team. How are they feeling? Do they need clarity about how work will shift? This helps build trust and keeps rumours from spreading.

One last thing

Letting someone go doesn’t make you a bad boss. Avoiding the tough call and hurting your business or your team’s culture does.

Handle it with care, honesty and respect. Your team will notice how you deal with tough moments just as much as the good ones.

Need help navigating team changes or tough calls?

I help founders and small businesses set up clear systems and people plans so these moments feel less scary and more fair. If you want to talk it through, I’m here.

Leadership is hard, but you don’t have to do it alone.