A layoff letter is used when a company needs to terminate an employee for reasons that were not directly caused by their own action or performance. Restructuring, economic downturns, mergers, relocations, buyouts, and other outside factors are usually the cause.
A layoff letter should clearly inform the employee that they have been laid off, and explain their next steps regarding benefits, pay, company property, and the last day of work. It should also inform employees if it is only a temporary layoff.
If you are preparing to lay employees off, be sure to have an attorney review your layoff plans, as well as your letter, to avoid legal risks.
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Below we've got a version of the layoff letter that you can copy and paste directly into an email or word processor.
Lay Off Letter Template.
Dear [Employee Name]:
I regret to inform you that you are being laid off from your position as [position name] effective [date layoff goes into effect]. This layoff should be considered permanent.
A recent [restructuring, economic downturn, buyout, etc] requires that [company name] lays off [number] employees.
These layoffs are not related to individual performance.
You will receive [amount of severance pay] and you will continue to receive [any benefits they continue to receive] until [time at which benefits end].
The following company property must be returned by [return date]:
- [list company property to be returned.]
Thank you for your contributions to the company. If you have any further questions, please get in contact with [contact name].
My best wishes for success in your future endeavors.
You may also be interested in our sample termination letter.