Sample layoff memo

To: [XYZ] Employees

From: [Mr. Y], CEO

Subject: Company Restructuring


Challenges in our operating environment, partly due to the financial crisis, have made our current business model unsustainable. Although we have made efforts to hedge against substantial losses on our largely credit-based sales to large accounting firms, as you might be aware from our recent financial statements, we have had a consistent decline in AccountSoft sales for the past two years, where the large accounting firms form 95% of the buyers. Nevertheless, our other sales to small businesses and individuals have remained steady during this period and offer potential for future growth based on our competencies and resources. Accordingly, our future lies in sales to the small businesses and individuals, and the current structure of the AccountSoft business does not align to such a vision.

In our current position, we are faced with two tough options. We have an option to continue with our business model and face an inevitable bleak future and ultimate failure of the entity that will result in all employees losing a source of income, or to remodel our business, but have to let some of you, who have been a core part of our history, leave. After careful deliberations that have involved appreciation of the part each of our employee has played in our history, and the effect of our decision on every employee’s life, we have come to the painful decision to sell AccountSoft business to Accounting Support Services, Inc. The sale will enable us refocus our business model to our mission and, in this way, enable us to secure the job opportunities for most of our staff.

In our decision to sell, we have evaluated all options that will reduce the impact of our decision on our employees. In this respect, we have reached an agreement with Accounting Support Services, Inc., to absorb all software developers as part of the acquisition agreement. Nevertheless, the sales and marketing employees attached to AccountSoft business will not be absorbed by Accounting Support Services and, as such, will be leaving our company. For these, we are evaluating ways through which we can lessen the burden of the layoff and, in consultation with your union representatives and the individual employees affected, we will roll out a phased layoff plan that will begin in two months’ time.

As part of the layoff plan, we will be meeting with the employee’s representative to settle on a fair level of payment for termination of the services. Additionally, we are exploring ways through which we can have the affected employees attend counseling and financial management services to help them manage the transition. Further, we have made plans with managers of the affected section to expedite the issuance of recommendations upon request.

Throughout the transitional period until the start of the first layoff phase and thereafter, we commit to addressing any questions that you might have concerning the layoffs. In this respect, you can contact the Human Resources Department at your convenience in case you have concerns and questions about any aspect of the layoff process. For all those who will be affected by this decision, we wish you all the best in your future endeavors and hope that we will get an opportunity to interact and collaborate in various endeavors in future. Meanwhile, we assure you of our availability to render any help required of us during this transition period and appreciate you for the worthy contribution you have had on our company’s history.

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