The Ethics of Firing: Why Leaders Must Prioritize People Over Metrics

Firing an employee is never an easy decision, but in the fast-paced world of startups, it’s often treated as a routine business move. Some founders and executives even glorify firing—arguing that letting people go frequently keeps the company lean and efficient.

But is this the right approach?

Hussain Alaidarous, CTO at Juleb, recently shared his perspective on LinkedIn, and it struck a chord with many professionals. He emphasized that employees should only be fired for genuine underperformance, and not simply to improve company metrics or because AI has made certain roles redundant.

This raises a critical question: Should businesses prioritize short-term efficiency over long-term employee trust and loyalty?

The True Cost of Firing Employees

When a company fires an employee, it’s not just a line item on a budget sheet. It’s a life-changing event for that person. Many employees leave great jobs to join a company, believing they will be given a fair chance to grow. When they are let go for reasons beyond their control—such as corporate restructuring or AI-driven automation—it creates a ripple effect:

🔹 Loyalty Erodes: If employees see their colleagues being let go arbitrarily, why would they stay committed during tough times?

🔹 Reputation Suffers: Companies that develop a reputation for frequent layoffs struggle to attract top talent in the future.

🔹 Workplace Morale Declines: Fear of being fired can cripple creativity and productivity, making employees hesitant to take risks.

When Firing is Justified (And When It’s Not)

Legitimate reasons for firing:
✔ Consistent underperformance over a significant period, despite support and feedback.
✔ Serious misconduct, such as ethical violations or toxic behavior.
✔ Repeated failure to align with company values and goals.

Unjustifiable reasons for firing:
❌ Cutting costs at the expense of employees who have been loyal for years.
❌ Laying off people due to AI automation without offering retraining opportunities.
❌ Firing quickly instead of providing mentorship and a chance to improve.

The Role of Leaders in Creating a Fair Workplace

As an entrepreneur or executive, your role isn’t just about improving the bottom line—it’s about building a company culture that values people. Employees who feel valued, respected, and secure are more likely to be loyal, engaged, and innovative.

Here’s how leaders can foster a people-first approach:

✅ Invest in Growth: If an employee is struggling, offer training and mentorship before considering termination.
✅ Be Transparent: Keep open communication about the company’s direction so employees aren’t blindsided by layoffs.
✅ Consider the Human Impact: Every layoff affects real people with real responsibilities—leaders must factor this into their decisions.

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Final Thoughts

Firing should never be a quick fix for business challenges. If companies want loyal, engaged employees, they must show the same level of commitment in return.

Great leadership isn’t about how fast you can scale—it’s about how well you can build a sustainable, people-first culture.

What’s your take on this? Should companies fire employees to boost efficiency, or is there always a better way? Let’s discuss. 🚀