<Employees>
  <Employee>
	<name>Jacob</name>
	<city>NY</city>
	<Team>SQL Server</team>
  </Employee>
  <Employee>
	<name>Steve</name>
	<city/>
	<Team>SQL Server</team>
  </Employee>
  <Employee>
	<name>Bob</name>
	<city>CA</city>
	<Team/>
  </Employee>
</Employees>

DECLARE @x XML
SELECT @x = '
<Employees>
  <Employee name="Jacob" city="NY" Team="SQL Server"/>
  <Employee name="Steve" city="FL" Team="SQL Server"/>
  <Employee name="Bob" city = "CA" Team="ASP.NET"/>
</Employees>'

DECLARE @Team VARCHAR(20)
SELECT @Team = 'SQL Server'

SET @x.modify('
    delete (Employees/Employee[@Team=sql:variable("@Team")]/@city)
    ')
SELECT @x 
/*
<Employees>
  <Employee name="Jacob" Team="SQL Server" />
  <Employee name="Steve" Team="SQL Server" />
  <Employee name="Bob" city="CA" Team="ASP.NET" />
</Employees>
*/

<Employees>
  <Employee>
	<name>Jacob</name>
	<city>NY</city>
	<Team>SQL Server</team>
  </Employee>
  <Employee>
	<name>Steve</name>
	<city/>
	<Team>SQL Server</team>
  </Employee>
  <Employee>
	<name>Bob</name>
	<city>CA</city>
	<Team/>
  </Employee>
</Employees>

DECLARE @x XML
SELECT @x = '
<employees>
  <employee>
    <name>Jacob</name>
    <city>NY</city>
    <team>SQL Server</team>
  </employee>
  <employee>
    <name>Steve</name>
    <city>NY</city>
    <team>ASP.NET</team>
  </employee>
</employees>'

DECLARE @Team VARCHAR(20)
SELECT @Team = 'SQL Server'

SET @x.modify('
    delete (employees/employee[team=sql:variable("@Team")]/city)
    ')
SELECT @x 
/*
<employees>
  <employee>
    <name>Jacob</name>
    <team>SQL Server</team>
  </employee>
  <employee>
    <name>Steve</name>
    <city>NY</city>
    <team>ASP.NET</team>
  </employee>
</employees>
*/