Layoff Letter Due to Budget Cut

A layoff letter is a termination letter that can be temporary or permanent, depending upon the gravity of the situation. It is based on issues relevant to the company and its operatives. Budget cuts are made to ensure the saving of more money and the earning of more profit. Sometimes, companies suffer from more expenditures, which results in less profit and money savings. To earn stability in accounts and expenditures, companies make budget cuts.

Budget cuts are made to ensure profitability and business preservation. To preserve and reserve more resources for backup, companies make budget cuts, including shrinking the organization’s space and staff.

By reducing the number of faculty members working in the office, the company saves a lot of money while paying fewer employees to get more work done.

While writing such a letter, after mentioning the employee’s requisites, i.e., name and designation, narrate and contextualize the reason behind the layoff. A standard layoff letter should comprise of three portions:

  1. Breaking the news of layoff and the reason(s)
  2. Contextualizing the reason
  3. Outplacement with appreciation

Following are two sample letters that can be used accordingly

1-

Re. Termination due to Budget Cuts

Dear Sherman,

This is to inform you with great regret and sadness that you have been terminated from the designation of Assistant Designer due to the budget cuts that the organization’s authorities proceeded with. The nature of termination is permanent, as budget cuts may also result in shrinking the business. The termination will take effect from 1st August 20XX.

There was a huge imbalance between production and expenditure. Budget cuts were decided to ensure the expected profit and keep a balance between output and spending. We tried to handle the imbalance and economic destabilization in various other ways, but unfortunately, they were unsuccessful.

Till the end of this week, you will be contacted by the company’s Human Resources Department, where you will be helped to find other ways to restart your career. We will also make sure to have a farewell meeting with you and other staff members. The termination has been made based on seniority, and I went through all the legal proceedings. The company will not forget your tireless and sincere dedication and strive for the company. We appreciate and highly regard your sincere contribution to the company’s career and the quality of work produced.

Thank you

Sincerely,

Signature


File: Word (.docx) 2007+ and iPad
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2-

Re. Layoff due to Budget Cuts

Dear Shaw,

I am Mark Janson, the Assistant Director from CLM Star Groups and Company. I am very sad to inform you that you have been laid off from the company while attempting to craft a way for budget cuts. Sheer economic destabilization and financial difficulties have put the company in a position to make some grave decisions.

The company’s authoritative heads tried various other ways to handle the situation and balance the disability in any plausible and competent way. The imbalance between production and sales has put the company in a position of shrinking its organizational tasks and laying off staff based on seniority, experience, and skills.

The budget cut is seen as the only way to bring the company into the economic balance of generating an appropriate profit and other benefits. We recommend you visit the HR Manager’s office, who can guide you regarding your career. It is as sad for us as for you because the company is impelled to lay off one of the most brilliant workers from the company and an extraordinarily intelligent mind.

You will be remembered as a great asset to the company, and we will always appreciate your sincere efforts to make this company sky-high. We cannot thank you enough for your cooperation and coordination throughout the company’s thick and thin. Feel free to call us at [X] OR write to us at [Email].

Sincerely,

Signature 


File: Word (.docx) 2007+ and iPad
Size 23 Kb

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