Option 1

Schedule a private meeting with the employee to explain the situation transparently, discuss the company's financial challenges, and explore potential alternative roles or support within the company.

Option 2

Refuse your boss's request outright and demand they find another solution, even suggesting they reconsider other employees for demotion or challenge the budget cuts with senior leadership.

Option 3

Delegate the task of informing the employee to another manager or HR, avoiding direct confrontation and hoping the employee will simply accept the decision without much resistance.