Recognize that quote?  It's from Jerry Maguire, specifically the scene where Jerry's peer, a sleazy agent named Bob Sugar, takes him to lunch with the express purpose of telling Jerry that the firm is letting him go.

Bob Sugar is written in a way that you recognize he's a sleazeball.  But Bob Sugar got one thing very right in his conversation with Jerry Maguire that any manager can learn from and emulate.

He led with a clear statement of the bad news he had to deliver.  In the first 5 seconds of the conversation.

"I'm here to fire you, Jerry".

When you're delivering bad, life changing news, clarity is your friend.  The confusion related to small talk is your enemy.

Too many managers try to deliver really bad news with small talk in front of it.  While I'm always a fan of relationship building in the workplace, small talk in front of bad news confuses the message at worst, and at best it's going to seem disingenuous to the recipient upon reflection.

Whatever the bad news is, you should attempt to say it in 10 words or less. That prevents you from making your language too nice, which can prevent the recipient from even understanding what the news is.

Just give it to them straight in the first five seconds.  Then be empathetic and figure out how you can help them after you deliver the news.  Let them vent, but be firm about the decision related to the bad news.  You're an agent of the company, so you have to be firm about the bad news.  Getting the bad news out in the first five seconds in a clear, concise manner puts you in a position where you can be firm.

Summary: When delivering bad news, you're a headline writer and you lead with the headline - 10 words or less in the first 5 seconds.  Then, you're a friend, peer/boss and counselor, who knows no time limit.