a big, discontinuous jump in rankings like that suggests a couple of things 1) the bot was taken offline and updated with a different engine hence different rank and/or 2) KGS recalibrated it's relative kyu/stone ranks (which it does from time to time)
More generally, it's good that OP you are thinking about investing in making your team better. When I managed large teams (~350) my thinking always went in this order for weak performers:
a) What can we do to allow them to perform in their current role (an honest discussion is usually a good place to start)
b) If they are in the wrong role, is there another role within the org where they can thrive?
c) If there is no role (typically this supported by either brutal incompetence and/or no desire to work at this place) it's better to get them out of there so they can find a place better suited to them.
Getting rid of bad people is good thing and shouldn't be shied away from. But the first step is asking how to make it work.
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