Layoff Letter due to Restructuring

Layoff means termination of the employees on the basis of issues at the company’s end. It involves the removal of a few employees because the company cannot afford to have them. The reason behind this could be different according to the different circumstances. A company may decide to layoff the employees while making mergers, restructuring, lack of work, slowness in the speed of business, unrecoverable loss in business, economic decline due to any other reason(s), and shut down of the business.

A layoff due to restructuring is made when the company or organization attempts for a complete or partial change in the mode of business. Change in the mode of business is changing the structure of the business. Corporate the restructuring includes expanding or contracting the company or organization, change in the financial structure of the company or organization, change in debt structure or creditors of the company, and alterations in the corporate controlling.

Restructuring could take the form of mergers or amalgamation of two or more into one to yield the results together with or without proportional ownership, take the form of acquisition or takeovers implying control of interest by another company, by demerging which transfers undertaking which may be one or more, divestitures i.e. selling segment(s) of the company for the sake of profit, cash or security, or financial restructuring.

While writing such a letter, mention the date of effectiveness of the layoff, contextualize the issue leading to layoff and mention your service of outplacement optimistically. 

Sample Letters

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Re. Permanent Layoff due to Restructuring

Dear Mais,

I am Jennifer Lona Writing on behalf of the Lucifer Gentle Manufacturing Company. The purpose is to notify you that you have been laid off from the company permanently effective from 20th July 20XX. It is sad news and a tough decision to lay off the company’s bright heads, but the company is compelled to do so because it is going to go through the process of restructuring i.e. financial nature of corporate restructuring.

After the accumulation of substantial damages in the form of huge loss to the company, the shareholders have decided to give consent on the internal restructuring which is economical. The restructuring involves various formalities, legal in nature, and carried out internally through an appropriate agenda. It will bring significant changes in the capital structure or pattern of the company. It will lead to the change in fixed finance and will also impact on the structure of ownership and control of the capital.

We have explored and tried a number of strategies but we could not find a way to not do a layoff. We appreciate our employees and their tireless services to the company. The layoff is a sad decision on the part of both i.e. the company and the employees.

We understand that the state of sudden termination can lead to worrisome concerns of finance and livelihood. Keeping in view your salvation, we have arranged a meeting with the Senior Manager of Human Resource Department who could guide you further and can help you out in finding your future career tactically.

Moreover, the company would pay $1000 to you as a reward to the services you have been giving in the company and doubtlessly, for the dedicated contribution. We do not feel fulfilled to thank you enough for your cooperation and sincerity in the company. For more contact us at [X] or write to us at [email].

Thank you

Sincerely,

Signature


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2-

Re. Permanent Layoff due to Divestiture

Dear Mark,

It is regretful to inform you that you have been laid off from the company due to divestiture. The company, to combat its financial fallout appropriately and effectively, has decided to sell its production wing to the NGH Mol Stock Group. This is carried out by the proclamation of the Production Manager and Quality Assurance Officer of the company that the uprising economic fallout has left the production wing with huge debts with high-interest rates. These interest rates are 18% higher than the previous one.

As the preceding situation informs the shift of production wing due to higher debts and interest rates, it is also to consider that the shift of the department is carried through all the legal formalities. It has been done for the sake of cash and security involving the limited sale of assets. It is to keep in view that only two sections of the production line are sold out as divestitures.

In the wake of the above-mentioned situation, it has become difficult for us to keep the employees at the previous numerals. We are implied to abate the number of employees in product line sections that are sold out keep in view the seniority and skill base of termination. Fresh employees are removed because the company policy involves a provision that says that while laying off the employees, the senior ones should be kept at a secure point as they have a record and history with the company.

We are thankful to you for this coordination and understanding. Soon, you will be contacted by the Human Resource Department for outplacement and consultation regarding your professional career as experts’ advice will help you out to find out the next job. You can visit the Finance Manager to draw out your paycheck and a $450 as a reward by the company. For more do not hesitate to ring at [X] or visit Mr. John A.K at your disposal.

Thank you

Sincerely,

Signature 


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