What are some Pre and Post steps? Esp. with the current economic situation, how would it be perceived by everyone else in the small team?
If it's like any other company, you'll probably schedule a meeting with them and some other manager, give them the bad news, make sure they know what paychecks and benefits they still have coming their way, and be a human and offer them some words of support and encouragement.
As far as your team, I think it's important to not say a bad word about the person let go.
By the way, this isn't a layoff. Layoffs are done for financial reasons, due to company restructuring etc - in a layoff it's not the employee's fault that they're losing their job.