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Sugar told the 35-year-old he was "out of his depth" after leading the losing team during a photography task in the fourth episode of the series.
Simon's team made a loss of £73.18 and he was joined in the boardroom by Alex Wotherspoon and Claire Young.
Alex was criticised for his reluctance to take a lead role in the task, while Claire's treatment of her team leader was questioned by Sir Alan.
He told her: "You're showing me that you have no respect for him. Whether he's a plonker or not that's not for you to decide...I don't like people being victimised, I don't like people being ostracised. You're not that bloody great yourself."
However, Sugar's final decision was to fire Simon and make Claire a team leader on next week's task.
Commenting on his departure, Simon said: "I gave it my best shot; I gave it everything I had. I gave 100% in every task.
"At the end of the day I failed. I'll go home now, pick myself up and I'll be putting satellite dishes up again next week."
The Apprentice continues next Wednesday at 9pm on BBC One.
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