There are two ways to convey bad news to someone (whether it be their personally tied to them, i.e., their performance or their team at large).
You screwed up, you failed, this isn’t working out, it’s time for you to move on.
Your best (is that what you called it) wasn’t good enough.
Here’s what you’re doing well, here’s where we’re going to help you with and here’s what we need from you to help us get there.
Option #1 assigns the problem and throws it at someone’s feet (doesn’t matter if it’s right or wrong).
Option #2 recognizes the problem, acknowledges the person and puts the onus on both the leader and the individual to get better and turn it around.
Or simply put – one reinforces the negative, while the other seeks to learn from it and become better.