MB here. Just be firm, don't get dragged into the weeks of specific details, and focus on how grateful you are for her assistance these years, what you plan to do to help her find her next position, when her last day will be (set a specific date and stick to it - giving her plenty of notice but also a firm deadline), and what you hope the future relationship will allow.

Don't let concern for her cloud what you know to be the right decision for your family in the long run, even if it's a little tough for the next few weeks.

Good luck.

This is going to be a very sticky situation and will need to be handled very delicately.

It seems like your nanny really needs this job if she has offered to work for less.
I would offer to help her find a new family as soon as possible. Let her know you will do whatever is in your power to assist her and will give her an outstanding and glowing letter of recommendation for her years of service to your family.

It will be tough for her to continue caring for your children after knowing she is being terminated, and if she doesn't take it very well, I strongly suggest you do not allow her to care for them if that is the case. No parent would want their child being cared for by a person who was unhappy with their job, right?

Good luck to you and I hope things work out well in your favor.

Just tell her this set-up isn't working for the family anymore so even though you are very grateful for the care she's given your kids, you'll no longer need her after Labor Day (or whenever you want her last day to be). Then ask if you can help find her a new job by posting on your neighborhood list-serve or whatever. Then that night, reiterate it all in email to her saying "Just to confirm what we talked about today, although we're very grateful ..." so it's in writing.

Due to changing schedules for our kids we have to tell our nanny we are letting her go this week....we could keep her on if we really wanted to, but it is time for us to make a change for more than one reason. We don't want to focus on any of the problems we've had with her because we love her and want it to be amicable. Problem is she is saying she will work for less money, fewer hours etc. But we need to make the change because it is the right thing for us and it hasn't been working out on a few levels. Any good advice on gently letting a nanny go, to make sure we do it correctly and also compassionately? I think it will be hard for her and we need her to continue working for a few weeks after we tell her. But I want to tell her as soon as possible so we can help her find a new job. We also really want to continue a relationship with her after she leaves because she has been with us for a while. Thanks for the advice.