Should I keep the employee or let her go?

60+ year old women works for me. She is hard of hearing and wear 2 hearing aids. Sometimes they help most of time they don't. She doesn't always understand the customer and very rarely understand what the manager asks her to do. But she always tries and make an effort. Although most of the time its not right and then she gets mad at us. We are a family business around for almost 50 years. Times are tough and we have already cut her days from 5-2 a week and even that is a strain on us MENTALLY! and our customers. Its difficult to work with a person who doesn't always understand you and says she does. Its extremely frustrating to a customer who is in a hurry and she gets them the complete wrong item. WHAT DO I DO? obviously being a smaller family business we are all kinda close to each other on a personal level and take an interest in each others lives. But from a business stand point with the economy in trouble and business struggling what do u do??
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