your query is silent about error done  by manager resulting in loss 

you can terminate his employment 

as far as recovery of loss is concerned in absence of detailed particulars cannot guide you as to remedy available to you 

Loss due to error of judgment by an employee in business is difficult to recover from him, unless there is fraud suspected. Legally only one third of his salary can be retined. 

Ask him to pay for the damages. Tell him that a fixed amount would be deducted from his salary. Also tell him that an fir and a case would be filed if he tries to flee or does any further damages.

1.  Send a Showcause notice to the errant employee to explain, as to why did he commit such an irreparable error, resulting in huge loss to the Company.

2.  Based on his factual submission to you, you can take further action suc as, lodging Police Complaint, to recover your loss atleast partially.

What was the reason for the loss due to employee?

Has he done any fraud because of which you suffer loss?

If it is a crime report the matter to police and simultaneously file a money recovery suit with the support of documentary evidence to prove his crime and the loss you suffered.

Dear client, I am sorry to hear that. A full bench of the Allahabad High Court has held that in absence of a specific remedy in Employees' Service Regulations, an employer may invoke civil liability to recover the loss incurred by him due to the actions of an employee

You need to claim it from his salary Or separate civil suit for recovery of the loss. See that you know the details of his property, house etc

- If that loss was occurred due to fault of that Manager , then you can recover the said damages after issuing a legal notice to him . 

- Further, if that employee has done fraud , then you can lodge a compliant against him before the police as well.