Trump mixed up the boys and girls for last night's episode, with Melissa Rivers heading up the new Athena and Clint Black the project manager of the restructured KOTU.
The week's task was to make a video commercial to advertise All Small & Mighty laundry detergent, but the executives were not keen on either advertisement.
With both teams summoned for their failure, Trump fired Watkins for volunteering to go back to the boardroom with team leader Rivers. He told her: "Never volunteer for execution."
Kardashian was also fired after she admitted to missing last week's challenge because of a court order for driving under the influence (DUI).
Trump said: "I hate people who drive under the influence. I know three families who lost children to drunken driving.
"If I had known you would have been missing time on the task for a DUI, you would have never been on the show."
Last week, Dennis Rodman was fired after a number of other contestants challenged him on his alleged alcoholism.