Layoff Letter Due to Company Closure

A layoff letter is more like a termination which can be temporary or permanent. While making a layoff company usually notify the employees about the layoff and contextualizes the reason behind such a big decision. While laying off companies need to keep the company’s layoff policies and legal codes of conduct in mind otherwise it may cause a huge loss in the shape of finance or fame or both. Layoff letter is written by the company or authorities to the employees in which the news of layoff is delivered along with reason and sometimes a moral nature of outplacement.

There are various reasons due to which companies opt for layoffs as the only solution to the problem. It can be due to restructuring the company, merger, any kind of civil emergency, loss in business, economic decline, financial imbalances, slow business, lack of work, or even the closure of the business.

A business has opted for closure in the wake of huge business loss which might be unrecoverable. Sometimes business would be shifted to another person or company and sometimes it would shut down completely. The reasons behind why a company opts for such a gruesome option may be sheer economic loss, unrecoverable financial decline, loss of management, or lesser managerial operational equipment.

While writing a layoff letter due to business closure, always be optimistic about the future of the employees as sudden termination is always a huge loss at their ends and they would find it difficult to manage their lives with these circumstances. Reassure them your withstanding through outplacement and a positive turnover.

Two sample letters are given below that can be used for the purpose like that.


Re. Permanent Closure of Business Leading to Layoff

Dear Shark,

It is a very sad ambiance here while delivering you the news that you have been laid off permanently. In fact, the complete essence is bad as we are going to close our business permanently due to some unrecoverable loss bore by the company during the past five months. The closure will be effective from 20th July 20XX.

The company had already been suffering from great financial loss, loss of some brilliant management equipment, and some under-table conspiracies. It led to some tough times that were tough to go through and the situation was triggered and exacerbated by the surge in pandemic which has become more an economic crisis than in the world of health and medicine. We opted for other options on the way but they were not fruitful. That is why we have decided to layoff.

We really appreciate the level of commitment and dedication that was observed in your work. Undoubtedly the company would never have had this decision of layoff if not to be impelled to do so. We thank you for your continuous and tireless efforts and industrious work to contribute to the well-being of the company to an advanced level. We can arrange a meeting with the Human Resources Department for Consultation.

Thank you.



File: Word (.docx) 2007+ and iPad
Size 20 Kb



Re. Layoff due to Business Closure

Dear Kim,

I am Noah Atel writing to you on the behalf of Normal Rex X Software and Designing (NRXSD), US. The letter aims to convey to you that you have been laid off from the designation of Assistant Finance Manager (AFM) likely to be permanent. I am sure the news is sad and astounding altogether but the reason would rationalize the decision. The company decided to layoff all the working staff from the business due to the closure of the business.

We are compelled to shut down the business due to a surge in economic fallout and the circumstances led to the present scenario. With this scenario, it has become impossible for us to run the business with maximum profit and appropriate effectiveness.

We are going to layoff the whole of the staff effective from 1st August 2020. This layoff would be of permanent nature and we will surely contact you if we would be able to find a space for a new business. We appreciate and admit your dedication and sincere efforts in creating a productive environment of working and quality production.

Thank you



File: Word (.docx) 2007+ and iPad
Size 19 Kb