Yes, the onus is always with leadership. And sometimes it is nigh on impossible to change (in certain businesses, for instance, particularly if the owner is the one leading).
Even when it isn’t fair, changing the leadership might be more effective than trying to change most of the people doing the work (something that is also almost impossible).
I had to fire a guy once, and as you say, it’s how you do it. He left wishing me the best and thanking me for the time I’d invested in him. I wasn’t expecting that at all, and it had me wondering for a long time. I guess I respected him, his dignity, and we parted ways on good terms.