Layoff Letter Due to Downsizing

A layoff letter is a piece of writing to inform the employees about their termination. A layoff can be of two types i.e. permanent or temporary. In a temporary layoff letter, the company is likely to inform the date of suspension and the date of rejoining. Sometimes, due to the uncertainty, the company may suspend the back to office date and keep it suspending and depending on the situation to get better. This is often done when the company is suffering from poor economic conditions resulting in difficulties in maintaining the profitability in the company’s budget.

Sometimes a company does downsizing to restructure the company’s faculty. Sometimes layoff is permanent and sometimes temporary as the company can rehire the candidates after the restructuring is done or the economic position is stabilized.

There are certain procedures to be followed while making such layoffs. The company should keep the layoff policies and legalities in view while making the execution of the layoff process officially. A few companies also pay an amount to the employees as layoff is sudden termination. Sometimes layoff is made when downsizing is done by transferring the business to other companies or organizations. Economic down-turn happens when demand for the production flattens and declines.

While writing a letter like that does not forget to mention the benefits you might be giving to the employees. There are chances of legal proceedings against the company if not taken proper measures to cope with any kind of legal errors. Make the following things sure:

  1. Legal conformity
  2. Proper communications
  3. Outplacement i.e. employee assistance

Two sample letters are given below that are layoff letters due to downsizing:


Re. Layoff due to Downsizing

Dear Markel,

I am Nisen Sharkal, the General Manager, writing to bring important information into your account. The lack of work has thrown the company in a tough time in the shape of economic decline and difficulties. These difficulties have led us to make some terrible decisions. One of those decisions is making layoff some of our employees. According to the decision taken by the company’s Board of Directors which includes Director-General, Managing Director, and our reverend CEO, we are implied to terminate a few employees permanently.

Due to the dearth of the situation’s gravity, we have decided to terminate you permanently because the company is not sure about the time period which can be taken by the situation to get better. In this grave situation, I can completely understand what you might be feeling due to this sudden act but as it has already been mentioned, we have decided this to balance the company’s economic difficulties. To bring a bit of comfort to you in this sad moment, the CEO has decided to give $1000 to you to manage your basic livelihood till your next employment.

The company regrets making such a decision but the world of business is unpredictable and implies you make such unfavorable decisions. In this moment of gravity, the company will not forget to appreciate your sincere efforts for the company and the quality of work produced by you. The company cannot thank you enough. Moreover, I hope you will understand this grave matter. Thank you.



File: Word (.docx) 2007+ and iPad
Size 21 Kb



Re. Temporary Termination due to Downsizing

Dear Sen,

This letter aims to inform you that King Overo has decided to terminate you temporarily due to the downsizing. The company tried a lot to explore other solutions to curb this serious situation but all in vain and it went unsuccessful straightly. The company faced this downsize due to the huge financial disturbances and lack of work. The company has decided to restructure its faculty.

You have served the company for seven years and the company appreciates the services you have performed till now. Appreciating your services, it has been decided that the layoff at your designation would be temporary. The situation has been serious and after making long reviews it has been decided to reduce the approximate workforce to make the financial stability sure.

Your termination will be effective from 1st August 20XX to 1st October 20XX. You will be contacted by the Human Resources department soon this week. I hope you will understand the gravity of the situation and cooperate accordingly. We are grateful to you and appreciate your coordination. For any further queries, you are free to visit the Human Resource Department Admin or write the matter to [email].



File: Word (.docx) 2007+ and iPad
Size 22 Kb