what to do what to do????

you are in management and you have to retrench people who have given their optimum effort towards building and maintaining the success of your business, how is one suppose to deal with this matter, because i do not think it comes easy to either of the parties concerned? i mean, being your typical african child or any other decent human being, it comes with your upbringing to respect and humble your self when dealing with elders, but now, how do I tell mama Miriam,who is perhaps 6 years older than your mother and has been working with you for a considerable amount of time, that the company has to downsize, that we can not afford to pay her anymore,that you are applying the last-in-first-out principle? is she not going to feel betrayed, how about, angry, worst of all dissappointed and lost for words.....how about you the bearer of bad news? can you perhaps say that it comes with the territory???