The "Remove Step" element in automation is similar to a trash can.
If you would like to remove a certain step (or related steps) from your workflow, simply drag them and drop them when hovering over the "Remove Steps" element OR drag the remove element to the workflow step to be removed.
Once that element is red you know you can release your mouse and "drop" the workflow step/s to be deleted.
NOTE: If you remove a step that leads to a different path (like Wait for Event or Flag) it could remove the entire path. Make sure you are replacing that step before removing.