Layoff Letter Due to Budget Cut

A layoff letter is a termination letter which can be temporary or permanent depending upon the gravity of the situation. A layoff is a termination based on the issues relevant to the company and its operatives. Budget cuts are made to ensure the saving of more money and earning more profit. Sometimes companies suffer from more expenditure which costs in less profit and money-saving. To earn stability in accounts and expenditure, companies make budget cuts. Budget cuts are made to ensure profitability and business preservation. To preserve and reserve more resources for backing up companies make budget cuts which include a lot of things. It includes shrinking the organization’s space and staff.

To lessen the number of faculties working in the office the company saves a lot of amount in the shape of saving money whilst paying to a smaller number of employees getting more work out.

While writing such a letter, after mentioning the requisites i.e. name and designation of the employee narrate and contextualize the reason behind the layoff. A standard layoff letter should comprise of three portions:

  1. Breaking the news of layoff and the reason(s)
  2. Contextualizing the reason
  3. Outplacement with appreciation

Following are two sample letters and can be used accordingly


Re. Termination due to Budget Cuts

Dear Sherman,

It is to inform you with great regret and sadness that you have been terminated from the designation of Assistant Designer due to the budget cuts proceeded by the Organization’s authorities. The nature of termination is permanent as budget cuts may result in shrink of business too. The termination will take its effect from 1st August 20XX.

There was seen a huge imbalance between production and expenditure. To ensure the expected profit and keep a balance between production and expenditure, budget cuts were decided. We tried to handle the imbalance and economic destabilization in various other ways but unfortunately, they did not go successful.

Till the end of this week, you will be contacted by the Human Resource Department of the company where you will be helped to find other ways to get your career to restart another way. We will also make sure to have a farewell meeting with you along with other staff members. The termination has been made based on seniority and went through all the legal proceedings. The company will not forget your tireless and sincere dedication and strives for the company. We appreciate and highly regard your sincere contribution to the company’s career and quality of work produced.

Thank you



File: Word (.docx) 2007+ and iPad
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Re. Layoff due to Budget Cuts

Dear Shaw,

I am Mark Janson, the Assistant Director from CLM Star Groups and Company. It is informed to you very sad that you have been laid off from the company while attempting to craft a way for budget cuts. Sheer economic destabilization and financial difficulties put the company into a position of making some grave decisions.

The company’s authoritative heads tried various other ways to handle the situation and balance the disability through any plausible and competent way. The imbalance between production and sale has put the company into a position of shrinking the organizational tasks of the company and layoff the staff on the basis of seniority, experience, and skills.

The budget cut is seen as the only way to bring the company into the economic balance of generating an appropriate profit and other benefits. We recommend you visit the HR Manager’s office who can guide you regarding your career. It is as sad for us as for you because the company is impelled to layoff one of the most brilliant workers from the company and an extraordinarily intelligent mind. You will be remembered as a great asset to the company and your sincere efforts in making this company sky-high will always be appreciated. We cannot thank you enough for your cooperation and coordination through thick and thin of the company. For more feel free to call us at [X] OR write at [Email].



File: Word (.docx) 2007+ and iPad
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