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Layoffs












Guidelines : Layoffs

Layoffs

Guidelines and Alternate Phrases

  • Begin with a summary of the situation and the reasons and then announce the layoff. Be truthful, objective, and clear.
  • Whitney Mitchell’s merger with Bromson, Inc., has initiated many staffing changes as we have tried to eliminate duplicate services during the past three months. Your position is one of those now being affected by the changes. Effective May 1, your division will be laid off under the provisions of our workforce-reduction policy.
  • The reality of our business is that we must continually evaluate our needs from all regions of the country. Market demands constantly change. While we have a surplus of technicians in one geographic location, we have a shortage in another. Your area now has the surplus, and we regret your position will be eliminated on May 1.
  • You are a member of a work division that has been determined surplus. In order to help reduce this surplus, the company is eliminating your current position and asking you to accept voluntary early retirement benefits.
  • Certainly, we’ve all watched media reports of the current recession and how it has affected jobs in our local area. The fact is now the recession has spread to our industry and our own corporation. We regret your own plant will close its doors, effective May 1, and your employment with Hemlay Corporation will be terminated as part of this plant-closing action.
  • We have today taken difficult but necessary steps to achieve substantial cost reductions required by a continuing decline in advertising revenue. We have found it necessary to terminate 22 full-time and 13 part-time positions. Your position is one that has been eliminated.
  • We have taken steps today to reduce our work force, steps fully consistent with our mission and its requirements. When times are good, it is easy to forge ahead; the test of a solid company is how well it can manage when times are not so good. We are doing our best to continue to provide quality service for our customers.
  • Show concern for the effect of the layoff on the individuals involved and the larger community. You may want to elaborate on other alternatives, such as early retirement options, that you considered in lieu of the layoff.
  • As you recall, we have tried to reduce our staffing costs by offering two early-retirement options, but the present layoff has become necessary because we did not have sufficient numbers of volunteers who elected to leave the company under the early-retirement plan. We want to make every effort to help you find suitable employment elsewhere.
  • We regret this action has become necessary, but we must also consider what’s best for our shareholders and the future of all our employees and company operations.
  • Your individual efforts have assisted us in reaching organizational goals through the years, and our only regret is we could not reach our cost-reduction goals without this layoff action.
  • Such reductions are always most difficult on those employees terminated, and then also on the community as a whole. We as a community have always rallied around our large corporations as leaders in civic projects that have improved the quality of life for all citizens. Belt-tightening is painful for all of us involved.
  • These terminations were made with great reluctance, and only after other economies, such as holding vacancies and an early-retirement incentive program, failed to yield sufficient savings.
  • Mention any available help the organization can provide, such as outplacement services, referrals, continuation of benefits for a limited time, and so forth. Give details about continuation or cessation of benefits such as medical coverage or use of company vehicles.
  • We can continue to provide you with an office and a telephone for job-hunting purposes during the next 30 days.
  • We have arranged with Borden Consulting to provide outplacement services.
  • We have circulated a list of names and job titles to our subsidiaries to determine if they have openings where they could use employees being terminated in our area. We encourage you also to make your own inquiries about such unexpected openings in other parts of the country.
  • You will still have available for the next 30 days the company car for your personal use.
  • All your health insurance coverage will still be in force during this transition time. The insurance company will contact you directly to….
  • You, of course, are entitled to unemployment compensation under the regulations and policies of the State.
  • Please be assured we can give you the highest recommendations for jobs you may choose to pursue.
  • To help you in finding another job as soon as possible, we are maintaining three vacant offices (C100-103) for those affected by this layoff to use in telephoning prospective employers, typing résumés, and making copies for mass mailings.
  • End with an expression of appreciation and concern for their future well-being.
  • Thank you for your past achievements with us; we wish you well in your future job.
  • Whatever career plans you may have, we wish you the best.
  • Whatever you ultimately decide about transfers or termination, I want to wish you the best with your plans.
  • We have every confidence in your future with another company.
  • We wish you the best in finding a job that affords you many opportunities for advancement.
  • Thank you for your work here. We know you will find a job you enjoy elsewhere.
  • We have appreciated your patience, support, and cooperation during this difficult time.
  • I would like to thank you for your loyalty and to express our best wishes for a bright and rewarding future.
  • Thank you for your fine work here. Please accept our best wishes for your future employment elsewhere.

Example 1: Layoffs letter

Company Name or Letterhead
Address
City, State Zip

Date

Addressee
Address
City, State Zip

Dear Bryan:

As you know, the company has been struggling with the rising costs of production and the falling prices caused by overseas competition. In our efforts to cut overhead and remain profitable, we have streamlined our staff operations at headquarters, and unfortunately your position is being eliminated, effective October 15.

Rather than finish any pending projects here, your primary concern now should be locating another position within one of our subsidiaries or with another corporation. Please feel free to make use of any contacts or referrals here to search for the job you want.

You will be given four weeks pay in lieu of advance notice, and your insurance will continue under the provisions of COBRA. The insurance company will contact you directly about payments and the filing of claims. We encourage you also to take advantage of our out-placement services here if you are unable to make arrangements for a transfer within Transton. We have people who can help you with preparation of your résumé, with aptitude testing, and with referrals for interviews.

You’ve been a valuable member of our headquarters team, and we regret the economic downturn has made this workforce reduction necessary. We extend to you our best wishes and have every confidence you will find a position that brings you personal satisfaction and allows you to use your talents effectively.

Sincerely,

Example 2: Sample of layoff letters

Company Name or Letterhead
Address
City, State Zip

Date

Addressee
Address
City, State Zip

Dear Bob:

Because of the reorganization of our salaried work force, it has become necessary to eliminate your position. Effective Friday, May 5, you will be placed on a lack-of-work status and laid off with those benefits for which you are eligible.

During the period preceding your last day of work, your primary effort should be in locating a new assignment, either within our company, if openings exist, or outside the company. I will personally help you in your search and will schedule an appointment time for you with Employee Relations for any help they can give.

Attached is an outline of benefits and conversion options available to salaried employees on lack-of-work status.

I regret business conditions require this action. I sincerely hope our combined efforts will be successful in finding a rewarding position that fully uses your capabilities and gives you every opportunity for further advancement.

Sincerely,

Example 3: Layoff letter to employee

Company Name or Letterhead
Address
City, State Zip

Date

Addressee
Address
City, State Zip

Dear Ms. Stover:

To lower our operating costs, Bettgo management has made the decision to reduce our operating staff, along with certain other organizational changes and functions. Your position is one of those affected by these changes. Your employment with Bettgo will be terminated under the provisions of a reduction in work force, effective August 14.

You will be paid your salary through the last day worked, including payment for your accrued vacation and two weeks’ pay in lieu of notice. Your insurance coverage is scheduled to expire on September 14. You have two options concerning continuation of this coverage; both are outlined on the attached page. When you have made your decision about this coverage and notified us with the attached form, the insurance company will contact you directly for all necessary details and/or payment.

You may also be eligible for state-administered unemployment benefits, and we encourage you to apply to the appropriate state department.

If you are rehired by Bettgo within one year, you may be reinstated with your former service date and all benefits related to that service date.

I’m sure you will have questions concerning this layoff. Please feel free to phone me or Director of Personnel Mark Harkrider at 444-5555, ext. 1234.

Sincerely,

Example 4: Dismissals letters

Company Name or Letterhead
Address
City, State Zip

Date

Addressee
Address
City, State Zip

Dear Ms. Frazier:

The corporate division has found it necessary to make further consolidations in its operations. These changes will allow us to operate in the most economical and efficient manner possible.

Your present position is being affected by these changes and will be eliminated March 15, 19—. However, we are pleased to say that we have identified another position to make available to you. If you choose to accept this new Secretary-III position, on March 16 you will begin reporting to Howard Peyton, manager of our South American operations.

If you should decide not to accept this position, we regret that you will be laid off under the provisions of the Reduction in Force Practices. We must have your decision by March 4 because other employees are involved in these staffing plans.

Please discuss any questions about these changes and new reporting lines with your immediate supervisor. Or perhaps you would prefer to call me at 555-4444, ext. 2588.

Sincerely,

Example 5: Letter of layoff

Memorandum

TO:

FROM:

DATE:

SUBJECT:

Dear Shirley:

As you know, sales have declined steadily over the past 18 months; as of June 30, 19—, we have recorded our lowest earnings in the past eight years. The sluggish economy and increased competition for our market share have forced us to restructure our work force and eliminate several positions from the middle-management rung. I regret to say that yours has been one of those positions eliminated. Effective Friday, May 15, 19—, you will be laid off with those benefits for which you are now eligible.

During the next three weeks, please feel free to make your primary effort that of locating a new position within Howell-Forrester—if that’s possible in these times—or outside the company. Also, we encourage you to phone Employee Relations Manager Frank Hanover for an appointment to discuss your search for employment.

Attached is an outline of your benefits and conversion options with regard to pension and insurance plans. If there are any questions about these, contact Michael Smith at ext. 3377.

I sincerely regret business conditions require this action, and I offer you my personal help in your efforts to find another position that affords you a much-deserved opportunity to further your career.

Example 6: Letter of layoff

Company Name or Letterhead
Address
City, State Zip

Date

Addressee
Address
City, State Zip

Dear Mrs. DiCorpo:

The economic downturn has had a profound impact on our ability to stay competitive in the international market. Revenues have declined for the fifth straight year, and it has become necessary to trim our work force in order to stay competitive. Unfortunately, your position is one of those affected. Your employment with Freedman Chemicals will be terminated effective March 31.

You will maintain those benefits for which you are now eligible, plus two weeks pay in lieu of advance notice, and vacation time already accrued. I have attached a sheet explaining your health insurance options once your company policy runs out on July 1.

We encourage you to seek another position within the firm or one of our subsidiaries if possible during these difficult times. If not, we hope you will find a position with another firm that is suitable to your talents and experience.

Julie Newberger in the Human Relations Department has offered to consult with you about other employment options. Feel free to call me if you need a recommendation. I’ve also made a list of possible contacts at other companies and would be happy to make some calls on your behalf.

Sincerely,

Example 7: Announce the layoff

Company Name or Letterhead
Address
City, State Zip

Date

Addressee
Address
City, State Zip

Dear Mr. Gomez:

Our consolidation with the New York division has been a difficult transition for our entire office. We have been forced to dismiss loyal employees in order to eliminate overlapping positions in both divisions. I am sorry to inform you that yours is one of the positions being eliminated.

Your position will be terminated effective March 31. However you are excused from your accounting responsibilities as of today. I encourage you to use your remaining time to seek a position in another firm. We have retained the services of Allen Wilhelm of Career Consultants to help you find a company worthy of your skills.

You will retain all benefits for which you are now eligible and your insurance coverage will continue for six months after the date of your termination. National Health will be in touch with you about your option to finance your own coverage after the six-month grace period.

We offer our gratitude for your loyal service and wish you the very best in the future.

Sincerely,

Example 8: Employee Layoffs

Company Name or Letterhead
Address
City, State Zip

Date

Addressee
Address
City, State Zip

Dear Mr. Jones:

As you know, this has been a difficult year for our company. It has come to the point where we must begin making personnel cutbacks. Although we loathe to take this step, we can no longer avoid it if the company is to survive. I regret to say that your position is included in the cuts.

I wish I didn’t have to give you such news. You have been a loyal employee for four years, and during that time we have valued your work. Your contributions to our design proposals have been excellent. Unfortunately, we have run out of alternatives.

Your position will be eliminated effective September 31. Your pension plan will remain intact indefinitely and we will apply the week of vacation you have earned plus two weeks pay in lieu of notice. Health benefits will remain in effect for four additional months unless you make arrangements with the carrier to extend them.

Janet MacKenzie in the Employee Relations department is available should you wish to discuss finding a new position, whether it be at one of our other divisions or another company. I would be more than happy to write you a letter of recommendation and suggest some possible contacts.

I am deeply sorry to see you go, Alex. Thank you for your fine work here.

Sincerely,

Example 9: Letter for announce layoffs of employee

Company Name or Letterhead
Address
City, State Zip

Date

Addressee
Address
City, State Zip

Dear Janet:

Due to our merger with Lockhart–Mellon we have been faced with eliminating a number of positions with overlapping responsibilities. We felt we could take care of the problem with our early retirement offer. However, too few people chose that option, and we are now forced to eliminate positions. Unfortunately, your position has been terminated, effective immediately.

I have attached a sheet which explains the status of your benefits and vacation time accrued. We will give you two weeks pay in lieu of advance notice.

I am keeping Room 214 open as a resource room for those looking for new positions. You are welcome to use the office, fax machine, and photocopy machine to facilitate your job search. We have also arranged to have Brian Elly from Career Services available for consultation. His number is 555-9039.

We appreciate the fine work you’ve done for us these past six years. It grieves me to have to let you go, but I know your positive attitude and strong work ethic will bring you success wherever you decide to go.

Sincerely,

Example 10: Layoffs

Memorandum

TO:

FROM:

DATE:

SUBJECT:

I am sure you are well aware that we have undertaken a major effort this year to cut costs so we can remain competitive in our swiftly changing market. Part of that effort has been the transfer of 70 percent of our manufacturing to factories abroad. Because the majority of the work is now being done overseas, we are compelled to reduce our staff in Philadelphia to a size appropriate to its decreased scope of responsibility. Regretfully, your position is being eliminated.

This becomes effective March 31. Between now and then, I encourage you to make finding a new position your primary objective. Susan Teasdale in the Human Resources department is available to assist you in your employment search.

You will be paid through March 31 plus vacation time already earned. I have attached a brochure explaining your health insurance and benefits options.

Whether you find a new position within or outside of Lockhart–Mellon, I hope you find something that engages your creativity and your skill with computers. Another company will be fortunate to have you. If you wish, I would be happy to write you a letter of recommendation to all prospective employers.

Thank you for eight years of fine work.

     

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