How to let someone go without blowing up the team
Done right, the rest of the team usually says 'what took you so long.' Done wrong, you lose two more people in the next month.
Document before you act
Two written warnings with specific examples and dates. Not for the courts, for you, so you know the decision is fair before you make it. If you can't write the documentation, you don't have a firing case yet.
Friday afternoon, short, in person
Keep it under 10 minutes. State the decision, the final paycheck details, and how the handoff happens. Don't relitigate. The decision is made.
Tell the team Monday, briefly
'[Name] is no longer with us. We wish them well. Here's how we're covering their work this week.' That's it. Don't badmouth. Don't overshare. The team already knew.
Take your version of this question further
This is one operator-tested angle on the question. Your shop, your size, your trade, and your team change the answer. Ask your specific version inside Ask a Shop Owner to get a response grounded in how owners like you actually handled it.