1) Willy is an embarrassment. He's an old-style salesman, and it's a new world. Selling is no longer done with a joke and slap on the back.
2) He's tired and he looks it. He's also been driving erratically and he's smashed up his car.
3) He's not pulling his weight. He was never a top salesman for his firm and now he is bringing in very little money.
4) And yes, as mentioned above, Willy is losing it. His angry conformation with Howard in Howard's office was just the last straw; Howard had been wanting to let Willy go for some time.
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