When an employee is asked to leave the company there are two constituencies you need to think about. The first is the departing employee. The second are the remaining employees. How you deal with the departing employee will be noticed by the remaining employees. Even if the departing employee was not liked, a bad cultural fit, or worse incompetent, the remaining employees will have some empathy for them on the way out and if you handle it well, that will send an important message to the team.