Despedir vs. echar

The Spanish words 'despedir' and 'echar' can both mean 'to fire' someone from a job, but they have different nuances and uses in various contexts.

Despedir

'Despedir' is a more formal term used specifically for terminating employment. It implies an official action taken by a company or employer to dismiss an employee.
La empresa decidió despedir a varios empleados para reducir costos.
(The company decided to fire several employees to cut costs.)
El jefe va a despedir a Juan porque no cumple con sus responsabilidades.
(The boss is going to fire Juan because he does not fulfill his responsibilities.)
Después de la crisis, muchas empresas tuvieron que despedir trabajadores.
(After the crisis, many companies had to lay off workers.)

Echar

'Echar', when used to mean 'to fire', is less formal and can sometimes be considered slang or colloquial. It often carries a more abrupt or unceremonious connotation compared to 'despedir'. However, it also has broader meanings, such as 'to throw' or 'to pour'.
El jefe decidió echar a Pedro después de varios errores graves.
(The boss decided to fire Pedro after several serious mistakes.)
Van a echar a muchos empleados la próxima semana.
(They are going to fire many employees next week.)
Si sigues llegando tarde al trabajo, te van a echar.
(If you keep arriving late to work, they are going to fire you.)

Summary

While both 'despedir' and 'echar' can be used to indicate firing someone from a job, 'despedir' is formal and specific to dismissals in professional settings. In contrast, 'echar' is more informal and can sound abrupt.