Deleting a folder will delete all objects, with one *exception, that exist within that folder, i.e., subfolders, files, pages, menu links, etc. To delete a folder and all objects located under that folder, simply right-click the folder you wish to remove and select Delete.
Content Publishers are warned that deleting the folder will permanently remove all objects within the directory so that they have a chance to re-think the operation and cancel the operation, if so desired.
Once the delete is confirmed, all of the objects within that folder will be permanently deleted.
*Exception: Content Types that are assigned to a folder that is being deleted, are automatically relocated to the nearest parent above the folder being deleted. The intentionally different behavior here is to prevent Content Publishers from accidentally removing Content Types that webmasters have created for them by simple removing a folder. Content Types can only be deleted from the Content Types view under Types & Tags OR if an entire site is deleted and the Content Type lives on the site or in a child folder of the site being deleted.