Let’s team members go?

These are all pretty good pieces of advice that have been used on me as an employee successfully:

http://womeninbusiness.about.com/od/managingemployees/a/5tipslayoffs.htm

I think number 2 and 4 are most important. If you can do anything at all to help them find another job, offer to do so. Give them a letter saying that they are being let go because you're eliminating the position, not because of poor performance that they can use with the unemployment office or to show a future potential employer so that it doesn't look like they were fired. Give them a few weeks notice at least and continue paying for them, but don't expect them to work much since they'll be using the time to find another job.

That kind of stuff helps a lot.

That's a good article, thanks for sharing it.

Agreed. I was let go at an early stage startup simply because of poor timing. Was given 1 month's pay upon departure which spoke volumes about the integrity of the CEO, and solidified my future cordial relationship with him.

Don't break the news just yet. Be open about your expectations.

Were the expectations laid perfectly clear that there needs to be more than "He comes in on time, gets his stuff done and leaves when the whistle blows. " to perform in the job? Or you're being passive aggressive and not mentioning anything of working past 40h for fear of legal repercussions perhaps? Unless its as clear as in Jack Ma's 1999 speech to his employees, the problem is most likely you. http://www.youtube.com/watch?v=Up9-C4_8dVo