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This is the best. It's not sooo bad news, but it's bad enough. The next meeting might be, "John was let go because money was tight", and that's an even worse meeting to leave from. I've had to do this type of thing a few times, telling a group either they weren't working, or letting someone go. That makes you sick to your stomach, and don't want to talk with anyone for while.
He's doing the right thing, it's just hard to deal with at the time.
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