How should you fire someone?

After the first, it gets easier. If it's 3 or more, call it a layoff, which sounds better. Be respectful, but don't get into a debate. I disagree with the article's recommendation to outline all the reasons you're letting someone go. I prefer to say something like "this is a team, and I'm the coach. It's not personal. I need to make sure I have all the right players in all the positions I need. Right now you don't fit into my playbook.". Not that hackneyed, but along those lines. Don't act like you're ashamed or embarrassed (even if you are); this is just business.

Unless they're unstable, offer to write a recommendation. Always make it positive, but not glowing unless they really were good and you let them go for financial reasons.

Here's another question: What's the best way to fire multiple people. Tell them at once? One at a time and risk the rumor getting out?

It seems like every time I hear a story about a layoff people complain that the management mishandled it. I haven't put a lot of thought into it, but I don't know if there's a humane way to do it.

It's the same with romantic break-ups -- there's never a good time or place.

Through a cannon.

Jokes aside, it's best to be respectful and use common sense. If it's because they're underperforming, you can be clear about that. If it's a long time employee and it's because of the economy, obviously, you have to be quite a bit more sensitive. This is especially true in a small company.

Don't say "hey do you have a minute?" Instead say "step into my office."