I definitely wouldn't guarantee it. But I think at least extending the possibility seems reasonable, given the fault. If they're outright fired, that says some

I definitely wouldn't guarantee it. But I think at least extending the possibility seems reasonable, given the fault. If they're outright fired, that says something to the existing team too, and especially in smaller shops where each head holds valuable knowledge, I'm not sure that's the company-benefiting message to send either. Plus if the individual chooses to leave, "I think we all noticed that so-and-so wasn't a good fit for the senior role. We extended them the opportunity to realign to a different level, which they declined" is a message I'd feel more comfortable presenting to the team. "We're not going to immediately shitcan you..." is a powerful truth for retention in small teams/companies. Especially coupled "... but we expect you to perform to your level, and we will address things if we see someone underperforming." I do agree with other comments that do-nothing and ignoring the problem will be cancer to building a high-performing team.