A Layoff Letter is a formal notice sent by the employer to the employee to inform the latter their employment agreement is going to be terminated due to the difficult financial standing of the company - the sales have declined and the business cannot afford to keep all the employees, the organization is going bankrupt, or it is required to reduce the costs of the company.
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As soon as the business discovers they cannot allow paying the employee any longer as they become redundant to the employer through no fault of their own, the employee should be properly notified about the layoff and explained their individual performance did not influence this harsh decision.
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Use this letter to notify employees about the fact that your business or organization needs to make cuts for financial reasons.
Use this template if you need to cut down on staff, whether due to a merger, buyout, economic downturn, or decrease in business.