# Hard Things — Decision Frameworks for the Calls Nobody Wants to Make

Firing people. Laying off teams. Pivoting when you've raised money on the old direction. Telling a co-founder it's over. Shutting down a product.

This isn't a framework for feeling better about hard calls. It's a framework for making them correctly.

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## Part 1: Firing

### When to Fire Someone

Most leaders wait too long. By the time they act, everyone else on the team already knows the problem person isn't working out. The team watches the leader, waiting to see if they'll act.

**Fire when:**
- Performance isn't improving after clear, direct, documented feedback
- The person is a culture or values problem, not just a skills problem
- You find yourself routing around them (giving their work to others, excluding them from important discussions)
- The team is being damaged by having them there
- You wouldn't hire them today for this role

**The question to ask:** "If I could wave a magic wand and this person just stopped coming to work, would I be relieved or would I miss them?" If relieved — you already know.

**The hidden test:** "Would I enthusiastically recommend this person to a friend's company for this exact role?" If no, what does that tell you?

### The Warning Signs You're Avoiding the Decision

- You've been "working on it" for more than 3 months
- You're hoping they'll leave on their own
- You're giving them feedback that's softer than what you actually think
- You're planning to "deal with it after the quarter"
- Other team members have started asking you about it

### Before Firing: The Due Diligence

Have you been **direct** — not hinted, not soft-pedaled, but explicitly said "your performance is not meeting the standard required for this role and your job is at risk"?

Have you given them **a fair chance to improve** with clear criteria for what success looks like?

Have you checked whether this is a **fit problem** (wrong role for their skills) vs a **performance problem** (not executing in a role they're capable of)?

Have you considered whether this is **your failure** — bad hire, bad onboarding, bad management — and whether another manager would get different results?

This isn't to talk yourself out of it. It's to make sure you can stand behind the decision.

### How to Fire Someone

**The conversation:**

Do it in person. Start of the week (not Friday — that's cruel). Private meeting. 30 minutes max.

Three sentences:
1. "I have difficult news — today is your last day."
2. "The reason is [one clear sentence — not a list of grievances]."
3. "Here's what the transition looks like [severance, references, timeline]."

**Do not:**
- Soften it so much that the person doesn't understand what's happening
- Give a performance review at the end ("you're really good at X but...")
- Apologize excessively (once is appropriate; more makes it about you)
- Leave open questions about whether this is final (it is)

**The question they'll ask:** "Why now?" Be ready for this. Have a direct answer.

**What to say to the team:** Same day. "I want to let you know that [Name] is no longer with the company. I can't share details, but I want to be transparent that this was a decision we made, not something they chose. Their last day is today." That's it. Don't litigate. Don't share reasons.

### Severance

Be generous. Not because you have to — because it's the right thing to do and it protects the culture. The team watches how you treat people when they leave.

For executives: 2–3 months standard, more if they've been there a long time.
For individual contributors: 2–4 weeks per year of service is reasonable.

**Reference:** Only confirm dates and title (standard practice). If you genuinely believe they'd be good somewhere else, offer a more substantive reference. Don't damage their career because the fit wasn't right.

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## Part 2: Layoffs

### The First Question: Is This the Right Move?

Layoffs are sometimes the right call. But they're also sometimes an avoidance tactic — avoiding harder decisions about business model, spending discipline, or strategic direction.

Before proceeding, be clear on what problem you're solving:

- **Extending runway:** How many months does this buy? Is that enough?
- **Restructuring:** Are you changing the direction of the company, not just the headcount?
- **Cost cutting without strategic change:** This is usually a mistake — you lose talent, damage culture, and face the same problem 6 months later.

**The math:** At your current burn, you need to cut \_\_% to extend runway from \_\_ months to \_\_ months. That math should drive the decision, not a "feels about right" number.

### Cut Once, Cut Deep

The worst outcome is two rounds of layoffs. After the first, the people who stay are already thinking about leaving. A second round converts "scared" to "gone."

If you're going to do this, do it once and do it to a level that solves the problem for 18+ months. Psychological safety matters more than any individual cost saving.

### Deciding Who to Let Go

This is the hardest part. A framework:

**By role:** Does the company need this function at current stage? If you're cutting a whole team or capability, it's cleaner, more defensible, and recovers faster.

**By performance:** If cutting across teams, higher performers stay. This is the moment where the "we have no B players" culture claim is tested.

**By span of work:** Which work is critical path to the strategy you're executing now? Everything else is a candidate.

**The veto question:** "Would I fight to keep this person if they said they were leaving?" If yes, they're safe. If no, they're a candidate.

### The Layoff Conversation

**Preparation:**
- Legal review first. In Germany: Betriebsrat, social selection, proper notice periods. In the US: WARN Act for 50+ employees. Do not skip this.
- Have severance paperwork ready before the conversation
- Have IT ready to revoke access (dignity: after the conversation, not during)

**The conversation:**
- Private. Direct.
- "We're restructuring the company and your role is being eliminated."
- Don't blame the person. Don't say "we had to make hard choices" three times. Say it once and move on.
- Explain severance, timeline, references clearly.
- Answer questions. "I don't know" is acceptable for some questions. "I can't tell you" is not.

**All-hands same day:**
- You, live, as soon as individual conversations are done
- Be honest about why and what it means for the company
- Answer hard questions. Don't hide behind PR language.
- Acknowledge that this is hard and that you're responsible for the decisions that led here

### Survivor Guilt

The people who didn't get cut will feel: relieved, guilty, scared, and angry — often all four. Don't underestimate this.

Within 48 hours of the layoff:
- Talk to every team lead individually
- Hold a team meeting for each department
- Be available for hard conversations

The question everyone is silently asking: "Am I next?" Answer it directly, even if you can't promise the future: "I don't plan any further cuts. Here's what would have to be true for that to change."

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## Part 3: Pivoting

### Signals That It's Time to Pivot

- Product-market fit isn't materializing despite iteration
- Growth requires heroic sales effort on every deal
- The customers who love you are not the customers you expected
- You find a problem you can solve well that's adjacent to what you're doing
- The market you targeted is smaller than you thought

**The danger signal:** You're pivoting to run from failure, not toward opportunity. Pivots pulled by evidence of a better path work. Pivots pushed by exhaustion with the current path fail differently.

### How to Think About the Pivot

Define what you're keeping vs. what you're changing:
- **Team**: usually keeping — the team is the asset
- **Technology**: partially keeping — usually can be reoriented
- **Customers**: depends — some will follow, some won't
- **Vision**: the long-term vision often survives; the near-term path changes
- **Brand**: sometimes requires a rename

The cleanest pivots have a clear answer to: "Why are we better positioned to win at the new thing than anyone else?"

### Telling the Board You're Pivoting

Do not surprise the board in a board meeting. Have the conversation individually with key directors first.

What to communicate:
1. What changed — the new data or insight that's driving this
2. What you're moving away from and why
3. What you're moving to and why you can win there
4. What this means for fundraising timeline and strategy
5. What you need from them

Board members hate two things: surprises and not being consulted. Give them both the information and the opportunity to contribute.

### Telling Customers You're Pivoting

Be direct. Don't spin it as "we're expanding our focus." If you're killing something they use, tell them clearly, with enough notice for them to plan.

What customers need to know:
- What's changing and when
- What happens to their data / integrations / workflows
- Who their contact is through the transition
- What alternatives exist

Customers who feel respected through a hard change sometimes become your biggest advocates. Customers who feel deceived become your loudest critics.

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## Part 4: Co-Founder Conflicts

### The Types of Conflict

**Values/direction conflict:** You disagree fundamentally about what the company should be. This is existential and usually doesn't resolve with more conversation.

**Performance conflict:** One co-founder isn't pulling their weight. This is hard but more tractable — it's addressable with clarity.

**Role/scope conflict:** Unclear ownership causing friction. This is often fixable.

### The Conversation You're Not Having

Most co-founder conflicts fester because nobody says the real thing out loud.

The real thing might be: "I don't think you're growing into what this company needs." Or: "I don't agree with the direction you're pushing us and I don't feel heard." Or: "I'm doing 70% of the work and we have equal equity."

Say the real thing. Not in anger. Clearly, directly, with respect.

### When It's Not Working

Signs the co-founder relationship is unsalvageable:
- You've had the real conversation and nothing changed
- You don't trust their judgment anymore
- You've stopped including them in important decisions
- You're telling people (investors, team) a different story than what's true
- The team has started choosing sides

### The Separation

Options in rough order of impact:
1. **Role change** — they move to a different function where they can succeed
2. **Advisor role** — they step out of operations, keep some equity, maintain relationship
3. **Full exit** — they leave the company

For any separation: legal counsel first. Cap table, vesting, IP assignment, competition clauses — all need to be addressed. Don't make handshake deals.

How you treat the departing co-founder tells the team, the investors, and the market who you are.

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## Part 5: Shutting Down a Product Line

### When to Kill It

- Revenue doesn't justify the cost (including the opportunity cost of what the team could be building instead)
- It's pulling the company in a strategic direction you're not committed to
- It requires resources disproportionate to its potential
- Supporting it is making the rest of the product worse

**The question to ask:** "If we launched this today knowing what we know, would we build it?" If no, that's your answer.

### What You're Protecting

The customers who use it. They trusted you with their workflow. Give them:
- Clear timeline (90 days minimum for anything with integration dependencies)
- Migration path to alternatives or your other products
- Data export
- A person they can contact with questions

### Internal Communication

The team that built it feels the loss personally. Acknowledge it. "This product represents real work and real care. Shutting it down is not a judgment of the team — it's a judgment about fit with where the company is going."

If team members are being reassigned, not let go — make that clear immediately. The fear of job loss will dominate every other concern until you address it.
