Answer: His boss wants Ethan to quit but decides to soften blow of the firing (as in a forced resignation)
Explanation: The best form of dropping Ethan, that would make him not to fully feel the blow of the sack would be to persuade him to resign because he is not meeting up with what the firm requires.
A forced resignation, would best suit the scenario in the question, to achieve mutual agreement for Ethan's job termination from the firm.