How do you fire people during challenging times?
If you have to get through the challenging times, you can do it in a way that is transparent and respectful.
Explain the situation you are in, the cash flow, the challenges, and give your team a way to communicate back and voice their opinions. If you have to let people go, do it with compassion, with openness and transparency.
People might still not like what they hear, but at the very least, you will build trust, and it will make a profound difference for the long run.