Within today's constantly evolving business landscape, employers might come across the difficult decision of having to eliminate jobs due to some restructuring in the company.
If/when this happens, you should approach the process with empathy and clear communication to ensure a smoother transition for both the affected employees and the organization as a whole.
This short article will provide an in-depth view of the reasons for job elimination due to restructuring, essential components of a layoff letter, and best practices for delivering the letter.
There are several grounds for having to eliminate jobs due to restructuring, but the four main reasons we typically see are; financial challenges in the company, a merger or acquisition, a complete change in business strategy, and new technology and advancements (which is happening at a fast pace).
You should always discuss any change like this with your own legal and HR team, but some everyday legal actions you should consider include the following:
Begin the letter by stating that the employee's position is being removed due to restructuring.
Briefly explain the circumstances that led to the decision to restructure and eliminate positions.
Clearly state the employee's title and department, ensuring no ambiguity.
Inform the employee of the effective date of the layoff and the length of the notice period, as required by law or company policy.
Outline any severance packages, continued benefits, and outplacement services offered to the employee.
Provide clear instructions on how and when to return company property, such as laptops, phones, or access cards.
Thank the employee for their contributions and acknowledge the difficulty of the situation.
Important Note: While writing a layoff letter is essential, it’s always best to have the initial layoff discussion in person or over some type of video chat. Sending a letter out of the blue without any initial context can often come across as insensitive & in-personal.
Dear [Employee Name],
I hope this letter finds you well. I regret to inform you that your position as [Employee's Position] will be eliminated effective [Last Day of Employment] due to recent restructuring efforts within the company. This decision was not made lightly, and we understand the impact it will have on you and your family.
Please be assured that this decision does not reflect your performance or dedication to the company. The restructuring efforts are necessary to ensure the company's long-term stability and growth.
You will receive [Severance Package Details], including [Severance Pay, Insurance Continuation, etc.]. Additionally, we are committed to assisting you during this transition and will provide [Outplacement Services, Job Search Assistance, etc.] to support you in finding new employment opportunities.
A member from the Human Resources department will reach out to discuss further details and address any questions or concerns you may have.
We truly appreciate your contributions to the company and wish you the best in your future endeavors.
Dear [Employee Name],
As we discussed early today, it’s with deep regret that we must eliminate your position as [Employee's Position] with [Company Name], effective [Last Day of Employment]. This decision results from an ongoing company-wide restructuring aimed at streamlining our operations and maintaining our competitiveness in the market.
I want to emphasize that this decision is in no way a reflection of your performance or work ethic. We genuinely appreciate your dedication and contributions to the company during your tenure.
In recognition of your service, you will receive a severance package, which includes [Severance Package Details such as Severance Pay, Insurance Continuation, etc.]. Our Human Resources department will contact you shortly to discuss further details and answer any questions you may have.
We will also be offering [Outplacement Services, Job Search Assistance, etc.] to support you during this transition.
Thank you for your commitment and hard work during your time with [Company Name]. We wish you success in your future career endeavors.
