Whatever Kraft chooses to do will be divisive. On one hand firing him looks to be the likely outcome–the team has been mediocre since Brady left and it had gotten better, it’s gotten much worse. But at the same time it won’t look good optically firing the best coach of all time who’s had a integral role in bringing you 6 Superbowls.
There’s a third option as well, which would be an interesting outcome. Belichick steps down from GM duties and stays only as a HC. After all it’s his roster construction (drafting and FA signings), and choice of staff that is the main reason why the Pats are terrible now. I just don’t see how Kraft can pull this off, though. Demoting BB is probably more demeaning that firing or trading him.
All in all, I think BB will be gone by seasons end (I doubt he’s fired mid season but we will see). A truly tragic ending to a man who’s the best coach the NFL has seen.