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Layoff announcement example

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Layoff announcement example
April 05, 2019 Anniversary Wishes For Parents 4 comments

Announcement of Layoff Letter. By Letter Writing. The most difficult task for a company or organization employer is to layoff the staff workers of the company.

Layoff Memo Examples

Monthly mass layoff numbers are from establishments which have at least 50 initial claims for unemployment insurance (UI) filed against them during a 5-week period. Because they are less commonly used these days - as email has taken over as the main form of modern communication - they can draw more attention. These layoff letter template provide exceptional instances of how to structure such a letter, as well as consist of example material to act as a guide to design. This simple layoff memo sample will help you craft a notification letter that is perfect for your organization. For questions regarding the layoff please contact (insert name). layoff, effective Tuesday, March 13, 20XX. Cover Letter Examples. They may not want you to work for, or share secrets with, their competitors. How to Write Late Shipment Apology Letter. 6+ calendar word template. These employees receive early consideration for any career position they are qualified and eligible for (as determined by the UC policy or collective bargaining agreement for the position held at the time of layoff). Attached are Sample Discipline Letters which supervisors can use to write their own letter. layoff letter template. One of the requirements with your application may be a letter explaining your past foreclosure. Letter of Termination - cancellation of a contractual arrangement. Sample letter. Employers considering a layoff can contact the State Dislocated Worker Unit to find out more information on notice requirements in their state. Wells Fargo has laid off hundreds of U. We have tips on writing cover letters as well as templates including: resume cover letters for job applicants, academic cover letters, grant and donation request cover letters, sales letters and other cover. For example, the work that is completed by this position to be laid-off will need to be transitioned. The odds of getting an old job back are better if you were let. Unemployment is not retroactive, so you should go to your local unemployment office within 48 hours, and having such a letter will help. employees are recalled, once the period of layoff is over while retrenchment is non-volatile i. Be advised that any further misconduct will result in disciplinary action, up to and including discharge. Sample Notice Letters. Ali Ahmad Ms. Reason that the position is being eliminated. Some of the key sentences to use include; We are really sorry that there was a delay in receiving your shipment order last week. Sample Letter for Announcement of Layoff; Sample Letter for Announcement of Strike; Sample Letter for Announcement Concerning Continuing Education Classes - Business; Sample Letter for Death of an Employee's Relative - Announcement to Office; Sample Letter for Announce Actions to be Taken During a Strike (Management's Announcement) Bonuses. Details are in the Education and Government Codes, and they are not subject to bargaining. Send( False, "Frank Glennel" ) This script gets an existing rich text item called ProjectDescription and adds a carriage return and a text value to it. Whether you're applying for a job by email, regular mail or fax, the outline you use to write your cover letter is the same. 010 Introduction. Send a positive reference for a former employee or co-worker with this sample recommendation letter template. Similarly, as you can see, the end of contract letter sample outlines the reason for the layoff but keeps the explanation brief and matter-of-fact. For three years, John served as a financial analyst and was a direct report to me. There are many different reasons why you may wish to write a rescind letter to get out of a legal contract. We will also be giving you samples that you can refer to when you are in need of guidance about how you should let your employee know about the unfortunate news. Can you please supply me a good appeal letter sample to use as English is my second language and I can not do a better letter?. This is the fourth mass layoff since August 2008. Dear_____, On _____(insert date) you were laid off from your position subject to recall. We will also be giving you samples that you can refer to when you are in need of guidance about how you should let your employee know about the unfortunate news. When you’ve been to the chopping block a few too many times, explain the circumstances after each listing of the company name: Carol Interiors (company closed doors). Layoff Letter Template Free - sample layoff letter template business, are employers required to give notice of layoff sample, 5 layoff notice letters find word letters, sample layoff letter template formal word templates, layoff notice ms word template formal word templates. , As a former Activision Blizzard employee, allow me to congratulate you all on posting a record $7. While writing the apology letter, it is important to start straightforward with an apology that will basically refer to the problem. Letter Of Recommendation After Layoff Download this letter of recommendation — free! Formatted and ready to use with Microsoft Word, Google Docs, or any other. A layoff or termination notice must contain specific details in order to become effective and valid. This letter should include details of the resignation like date and reason for leaving. August 15, 2018. The Culinary Union has contracts with more than 45 different employers. Page 3 of 16 Rule 17. Layoffs Happen, But Still Need Explanation. Earlier: Rochester, N. Send this letter when your company needs to announce a layoff. Subject: Layoff recommendation letter for Mr. The sample letters are for licensed teaching staff; classified staff, and administrators. How to write an effective cover letter. For example, mention that. Wells Fargo has laid off hundreds of U. However, once a business does foresee such a layoff or plant closing, it does have the obligation to notify its employees. Be sure to give the employee a copy of the layoff letter, accompanied by proof of service. ] Fired? Should You Still Explain The Employment Gap in Your Cover Letter? Maybe. Jul 21, 2014 · Microsoft's mangled layoff memo offers a lesson in how to write a crappy, insensitive note to employees, says career coach Marie McIntyre. Of course, it will need to be edited to meet your needs based on the specific situation with which you are dealing, but it does provide a good starting point. Even if you feel you were wrongly terminated, trying to explain what happened in a letter will likely raise more questions and probably won't endear you to hiring managers. Starbucks CEO Howard Schultz sent the following memo to employees January 28, 2009: Dear Partners, As you well know, these are very challenging times for everyone at Starbucks. LAYOFF FREQUENTLY ASKED QUESTIONS What is a layoff and why is it happening now? A layoff is the involuntary separation of employment of an employee due to the abolishment of the employee’s position. The sample resume shown below is a targeted resume for an information technology expert who has been laid-off multiple times in a short time period. Writing a cover letter for an accounting clerk position is a piece of cake, especially with the sample letter and skills cheat sheet we've created for you. SAMPLE - Reduction‐in Force (Reduced Work Hours) For layoffs by classification for reason of lack of funds or work, or abolition of a least 15 calendar. are still terminated. Your termination results from a layoff necessitated by (lack of work and/or) lack of funds. This is a character reference written by someone such as an ex-employer who knows the subject. Last updated on January 16th, 2019. If you were fired, it’s best to avoid mentioning the circumstances of your termination in your cover letter. When an employer has to lay off employees, the employees should receive all of the information about their layoff, their benefits, their final paycheck, and more, in a termination letter. Writing an Eviction Letter? So, use this sample eviction letter as a template for your successful eviction letter. This is sample retrenchment letter format terminating the employee due to downsizing. Crafting a Letter of Termination Due to Layoff that catches the attention of hiring managers is paramount to getting the job and LiveCareer is here to help you stand out from the competition. Sample Notice Letters. A cover letter introduces you to an employer you'd like to work for. Creating a memo in Word is as easy as opening a memo template and starting to type. If you have a union contract, be sure to check its provisions for layoffs. Format of Letter for Cancellation of Meeting in any case. … Read More ». For example, if this memo informs employees that they must enroll in a new benefits program, the first paragraph would explain that the organization has decided to implement a new insurance program and that all employees need to enroll within the next thirty days. With All-Business-Documents software you get example Layoff letters to help you find the perfect words to say, plus practical writing guidelines and tips provided by professionals. Sample Lay-off Letter In this lay-off letter, employer Franco Bellini—owner of Pino's Pizzaria—writes to employee Joanne Montague advising that the company can no longer employ her. ] Fired? Should You Still Explain The Employment Gap in Your Cover Letter? Maybe. Happy Friday, August 23. If you’re going to mention a layoff on a resume or cover letter, do so with honesty and integrity. To emphasize key points or to organize the memo into different sections, use headings. The demand for sports remains undiminished, though the. How To Squeeze Every Last Severance Dollar Out Of Your Layoff. Free wrongful termination grievance letter examples. Check out this story on. In general, the federal notice requirements under the Worker Adjustment and Retraining Notification (WARN) Act apply to employers with 100 or more employees. Getting a pink slip or just witnessing your friends go through a layoff in a company can be extremely stressful. It is often written from a one-to-all perspective (like mass communication), broadcasting a message to an audience, rather than a one-on-one, interpersonal communication. Those up for promotion (“It’s coming this year, we promise!”) will bail in July/August once promo’s are announced. Louis, followed by IT advisory services in Atlanta). 080 Order of Layoff Determination Attachment #2 Sample Layoff Letter Sec. There are a number of good templates for reference letters available on Business Balls. " Notice of Termination Due To Job Abandonment - Consider this letter if you need to terminate someone who has not been showing up to work. See OAC 123:1-41-20 See section X of Detailed Overview See Exempt - 5 for sample abolishment letter. Like other sample letters, a I quit letter will include name, mailing address, phone number and email address of both the writer and recipient. layoff letter template that will completely match your requirements. In addition, WARN is triggered if a layoff is expected to last for at least six months, or if employees’ hours are cut by at least 50 percent every month for six months. She gives the reason certain employees were selected for the layoff to prevent an employee from feeling targeted. Once you have made your decision to turn down the job offer it is polite to write your decline job offer letter immediately. Layoff status may be less than one year if:. Dear: In accordance with Personnel Policies for Staff Members Policy 60, I regret to inform you that because of. Career employees who have been notified of layoff can request preferential rehire status. [Editorial Note: When fired, check out this in-depth guide on what to do before and after a layoff or firing. Sample Termination Letter For Poor Performance or simply the notice of termination is the notice generally provided by the employee stating the date on which employee's contract of employment will end. Variety of layoff letter template that will flawlessly match your demands. Health insurance and other employee benefits will continue during the layoff. The key to writing effective cover letters, then, is to follow instructions and communicate succinctly but with a compelling voice. Conditions may arise that result in the reduction of the university work force, including but not limited to lack of funds, lack of work, or reorganization. Home address – line 1. Make the suitable modifications to satisfy your purpose. LANL Layoffs 2012 -- The New Story THE EXPECTATION OF EQUITABLE TREATMENT AND FAIR DEALING. 090 Notice to Employees Attachment #3 Continuous Service Sec. President Donald Trump and his aides are wildly out of step on the economic messaging coming from the White House. Layoff Letter Template – use a layoff termination letter to lay f employees use this sample layoff termination letter as a model to craft your own letters your employees warrant your care and attention during a layoff situation this sample termination letter is an example. Request for Status Information Letter. The lay-off notice letter is an open format Microsoft Word document that allows the wording to be adjusted to suit different needs. starting time. Othman Daud Mdm Sabariah Ahmad Ms. SAMPLE LETTER OF UNEMPLOYMENT October 11, 2004 To the Officials of the China Center of Adoption Affairs: I an) presently unemployment at this time and am now a homemaker. Terminating Employees. Use the following examples as a guide when writing your cover letter:. com Subject: Employee termination announcement Dear all, I am sending this email to inform you about the departure of Mr. If you were fired, it's best to avoid mentioning the circumstances of your termination in your cover letter. Education Code. PPSM PPSM Working Document PPSM Model Layoff Letter #1: Indefinite Layoff PPSM Model Layoff Letter #2: Indefinite Reduction in Time. It’s important not too include too many details about why employment is being terminated – the more you say, the more legal trouble you could get yourself into. Examples of Reduction in Force Letters. It's better to cut deeply and infrequently. For example, when a jerk boss causes you to resign or get fired. A Change of Ownership Announcement Letter is a merely a formal announcement to all the faithful and devoted customers/employees that the owners of the company are going to waive the ownership to some other person/body. SAMPLE LETTER OF TERMINATION FOR STAFF REDUCTION Date Ms. It indicates the ability to send an email. It can help with rumor control. See "Employee Rights and Benefits" tool elsewhere in this section. The content supports your resumé and highlights your skills and accomplishments. Subject: Admission cancellation letter. The severance pay offered is typically one to two weeks for every year worked but can be more. The fewer words you use in your memo, the more likely everyone will understand what you wish to convey. It's like saying that you were robbed, but you still have all of your property. But the take-rate will likely be. Letter of Salary Decrease to Employee. It provides a structure and key elements to avoid misunderstandings and disputes when ending an employee contract. The wording of a letter is important and you may want to consult the Student Affairs Personnel Officer or Human Resource Representative for assistance in writing your letter. This video will teach you how to write a cover letter to address and overcome your layoff by making the connections between your experience and the requirements of job to which you are applying. Layoff letters are sometimes difficult things to write. 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. For example, if this memo informs employees that they must enroll in a new benefits program, the first paragraph would explain that the organization has decided to implement a new insurance program and that all employees need to enroll within the next thirty days. Crafting a Letter of Termination Due to Layoff that catches the attention of hiring managers is paramount to getting the job and LiveCareer is here to help you stand out from the competition. Extended mass layoff numbers (issued quarterly) are from a subset of such establishments—where private sector nonfarm employers indicate that 50 or more workers were separated from their jobs for at least 31 days. Download samples of professional document drafts in Word (. Employers laying off workers employed in Wisconsin should be aware that federal and/or state law may require that written notice be provided 60 days in advance of a dislocation event. This sample termination letter is an example of the type of letter you might write to employees your business is forced to lay off due to economic factors. It's never easy to layoff employees. This letter is vital in the sense that it explains why a person is unable to pay off his debts, car loans or other major loans. Employers considering a layoff can contact the State Dislocated Worker Unit to find out more information on notice requirements in their state. Further instructions and disclaimers regarding the memo must also be emphasized clearly to properly guide readers. The Aiken Standard has obtained that communication. Subject: Termination. The lay-off notice letter is an open format Microsoft Word document that allows the wording to be adjusted to suit different needs. Layoffs of year-round employees may require a different approach than that of seasonal workers. Dear_____, On _____(insert date) you were laid off from your position subject to recall. Sample Termination Letter Due to Lack of Work. Related For 5+ layoff letter. The letter contains a not-so-good news no matter how it is written. Possible avenues for analysis When applied to the layoff memos in this column, close textual analysis suggests several potential avenues for rhetorical investigation. Like other sample letters, a I quit letter will include name, mailing address, phone number and email address of both the writer and recipient. Apology letters ought to avoid referring to sensitive personal matters, since they might be read by other people. If you would like to unsubscribe or have any questions, you can click on the unsubscribe links in. The purpose of this letter is to acknowledge your termination, which is effective of DATE. As you all know, he had been serving as our Sales Manager for the past 8 months, and has been doing his best to. Writing a memo that will put people out of work and without an income to support themselves and their families isn't a task many employers want to face. 11 Promotion/Transfer ). I have worked side-by-side with John for the last seven years in the finance department at 3M Corporation. 02 Academic Staff Layoffs Academic Staff Layoffs This policy provides uniform criteria and procedures in the event it becomes necessary to reduce the number of Academic Staff positions or to restructure the Academic Staff workforce due to loss of funding or a budget/program decision. The workers believe that complete privatisation of the bank will lead to mass layoffs. LANL Layoffs 2012 -- The New Story THE EXPECTATION OF EQUITABLE TREATMENT AND FAIR DEALING. Employees who have received formal written notice from their employer that they will be laid off may be eligible to be placed on the Statewide Layoff List. sample layoff letter. The actual announcement was in the 10 th paragraph of an internal memo. Career Development Form Samples. It gives me great pleasure to write this letter of recommendation for John Smith. To put it straightforwardly, it is going to be owned by someone else/body henceforth. It provides a structure and key elements to avoid misunderstandings and disputes when ending an employee contract. Sample Recall Notice. Study our Letter of Termination Due to Layoff Samples to learn the best way to write your own temination letter. Statement of purpose must be included in the letter which is also known as subject of the letter. Save, sign, print, and download your document when you are done. 3132— Texas severance agreement & general release, p. For example: • A careful study of pronoun use by the three authors reveals striking differences among how the CEOs perceive their relationships to their respective employees. • Furlough (2 AAC 07. A stylized bird with an open mouth, tweeting. Remember, the main difference between. layoff, effective Tuesday, March 13, 20XX. Sample letter. Beginning November 25, the plant will be closed until January 2. It's like saying that you were robbed, but you still have all of your property. When you've lost your job due to a layoff, you need to be prepared to explain what happened -- very carefully. This video will teach you how to write a cover letter to address and overcome your layoff by making the connections between your experience and the requirements of job to which you are applying. Sample Cover Letters • Resume Cover Letters • Cover Letter Examples 287 cover letter templates you can download and print for free. A customizable letter template that serves to notify an employee his or her job has been terminated due to layoff or being fired. While writing the apology letter, it is important to start straightforward with an apology that will basically refer to the problem. AUDHome-->Legal Rights-->Sample Letters The Association for Union Democracy (AUD) is a pro-labor, non-profit organization dedicated to advancing the principles and practices of democratic trade unionism in the North American labor movement. Some sample layoff letters are also given below that will help you in customizing your own layoff letter according to your own needs. Reduction-In-Force or Layoff: What Difference Does it Make? Updated by Sachi Barreiro , Attorney, University of San Francisco School of Law Learn the difference between a layoff and a reduction-in-force and what benefits you might receive. Sample layoff notice template 6+ free documents download in. When an employer has to lay off employees, the employees should receive all of the information about their layoff, their benefits, their final paycheck, and more, in a termination letter. The purpose of this letter (also referred to as the "Agreement") is to establish an amicable arrangement for ending your employment relationship, to release the Company from all legally waivable claims and to permit you to receive severance pay and related benefits. First, the bad news is mentioned right away, in the subject line and in the first sentence. grieves the layoff and the appointment ends prior to the resolution of the grievance, the notice of layoff shall also serve as notice of non-reappointment, where such notice is required. Moved Permanently. 6+ calendar word template. , memo is an example of how publishers are breaking the bad news. Chairman and CEO Ann Moore penned the email memo to employees tonight. For more information or advice about reasonable notice, contact an employment lawyer. [Editorial Note: When fired, check out this in-depth guide on what to do before and after a layoff or firing. If you find yourself in a position where economic times and lack of revenue force you to downsize your work force, though, writing a layoff memo will be your first course of action. Easy-to-adapt sample reference letters. 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. Letter of Salary Decrease to Employee. Amir Efrati. Intel is certainly not the only example of massive layoffs. The key to writing effective cover letters, then, is to follow instructions and communicate succinctly but with a compelling voice. Health insurance and other employee benefits will continue during the layoff. Microsoft's mangled layoff memo offers a lesson in how to write a crappy, insensitive note to employees, says career coach Marie McIntyre. A credit memo is a contraction of the term "credit memorandum," which is a document issued by the seller of goods or services to the buyer, reducing the amount that the buyer owes to the seller under the terms of an earlier invoice. The WARN Act applies to private businesses with 50 or more full time workers in New York State. By David Leonhardt May 15, 2009 11:38 am May 15, 2009 11:38 am. SAMPLE HARDSHIP LETTER RE: Bob and Bonnie Borrower Property Address City, State Zip Account number: Dear (servicer) representative: [State what type of work-out plan you are seeking. However, once a business does foresee such a layoff or plant closing, it does have the obligation to notify its employees. The demand for sports remains undiminished, though the. Termination Letter - to terminate an employee's position. Even if letting go of the employee (or. At no point can it adopt a harsh tone; these emails must always have a professional and civil tone. First, the bad news is mentioned right away, in the subject line and in the first sentence. A detailed holiday memo may be distributed monthly or annually as well. Use this sample layoff termination letter as a model to craft your own letters. This section discusses the general principles involved in determining whether a given separation is a voluntary leaving or a discharge. Sample Termination Letter For Poor Performance or simply the notice of termination is the notice generally provided by the employee stating the date on which employee’s contract of employment will end. One of the requirements with your application may be a letter explaining your past foreclosure. Tech Industry Ballmer's e-mail to employees regarding layoffs. Coordinate with your Employee Relations Consultant, who will communicate with Labor Relations. layoff letter example fresh adjustment template pics termination. Chairman and CEO Ann Moore penned the email memo to employees tonight. Need to create a layoff memo? We have you covered. A letter of termination is a form of letter that is used by companies or employers who want to terminate an employee due to their poor performance, incompetence, unacceptable behavior, layoffs, or any other reason. Intel is certainly not the only example of massive layoffs. How To Write A Layoff Letter To Employee By Clara Sun | Comments Off Whenever a company intends to lay off employees, the communication should be done in an official manner. Response Letter Writing Response Letters Like a Pro! With All-Business-Documents you get example response letters to help you find the perfect words to say, plus practical writing guidelines and tips provided by professionals. The employer must give notice of group termination. Harley Benedict Project Officer Smart Park Equine LLC 738 Alpine Ridge Wabasha, MN 55637. Easy-to-adapt sample reference letters. Minimizing the negative impact of layoffs on survivors begins with the way in which the layoffs are managed. Notice Of Layoff, Free sample and example letters. You may wish to give employees as much advance notice as possible that layoffs are coming. Layoff letters are sometimes difficult things to write. A memo is still an effective way to communicate effectively with staff. These design templates provide superb instances of how to structure such a letter, and also consist of example web content to serve as an overview of. Sometimes, it might be written to the creditor to ask for some leniency. This is a character reference written by someone such as an ex-employer who knows the subject. If you're struggling to pay your creditors right now, using the sample letter above may be a good idea, but you may actually have more options. Before writing a letter announcing such a policy,. In my very humble and not all that factual based opinion, I think the tone and message will depend not only on how long the gap was but how recent it was. TNCC expects to. 1) The following example is problematic for several reasons. We have tips on writing cover letters as well as templates including: resume cover letters for job applicants, academic cover letters, grant and donation request cover letters, sales letters and other cover. Lay Off Letter Seasonal Layoff Letter Template Valid 34 Sample Layoff Letter Due To, picture size 1275x1650 posted by admin at 19 Mar 2019. Layoffs should be administered swiftly. Sample Layoff Letters and Information from Transportation District Notification Letter of Impending Layoff (1999) - A basic letter providing notice of an impending layoff, the reason for the layoff, useful information to assist the employee in the short term, and a hope that laid off employees may someday be able to return. Rehire After Layoff. *Mass layoff is defined by BLS as an event in which there are 50 initial claims for unemployment insurance filed against employer during a 5-week period. Modify this free employee contract template with specific terms unique to the employee's contract and time at your company. Sample Policy 1: “There are two ways to terminate employment: voluntary and involuntary. For example, you can justify any major gaps in your employment history. , layoff, can occur when there is a lack of available funding or work, a reduction in the size of the work force, a reorganization, or changes in business needs or workplace requirements which impact staffing needs. How to answer questions about a layoff For example, "The layoff was a corporate decision "made for financial reasons, "and out of my boss's control. (article continues below). Worker Adjustment and Retraining Notification (WARN) Act Guide to Advance Notice of Closings and Layoffs. Continuation of insurance benefits, assistance finding another job and other perks can also be bargained for. Eviction is a costly and time-consuming process. To conform to the Act, notices must be received 60 days before a closing or layoff. Health insurance and other employee benefits will continue during the layoff. 1: Definitions. To provide managers and supervisors with the guidance they may need in times of crucial communication, Employee & Labor Relations has prepared sample letters for supervisors to deliver to employees: Probationary/Limited Appointment Release Letter. Include a call to action in your memo and close with an easily-performed action. Board of Canadian Registered Safety Professionals 6700 Century Ave Suite 100 Mississauga, ON L5N 6A4 To Whom It May Concern: This letter is to verify that NAME OF APPLICANT is employed at NAME OF COMPANY in the position of. Sample Letter of Offer: CURRENT EMPLOYEE - CLASSIFIED POSITION CHANGE (Promotion, Demotion, Transfer) Subject Promotion, demotion, transfer for current employee, classified position change. A layoff notice is a necessary document when a business decides to lay off their employees for various reasons. Let’s not get into all that in the cover. If you have a union contract, be sure to check its provisions for layoffs. The following information will inform you of the layoff procedure and your rights under the 2017-2019 NAPE/AFSCME Labor Contract. Reason that the position is being eliminated. Home / Business / Letters and Notices / Layoff / Sample Letter for Callback after Layoff. In addition to giving reasons for the layoff or retrenchment, it provides a strong recommendation for future employment. ] Fired? Should You Still Explain The Employment Gap in Your Cover Letter? Maybe. Templates and samples are available for download in this article. She tried to tout gains in its digital business--part of the reason for the reorg is to move more of its content to Web platforms--noting 26 million people visit its Time Inc. The layoff and recall rights of employees within the classified service of the state as provided in subsections (5) and (6), section ten [' 29‐6‐10(5) and (6)], article six, chapter twenty‐nine of this code shall be limited to the organizational unit within the. For example, instead of stating "Policies," write "New policies regarding part-time employees. 40 Proof of Employment Letters, Verification Forms, Templates & Samples If you're a boss or employer, a proof of employment letter, also known as an employment verification letter, is a form of formal correspondence. Layoffs should be administered swiftly. The review must occur before any proposed layoff is announced or implemented. Dear _____, It is with deep regret that I must inform you of the recent decision to terminate your association with ABC Company. Also, if your Agency’s Plan to rescind other layoffs has been approved by OPM, you may issue the attached applicable letter to impacted nonrepresented or nonpermanent employees. In accordance with Article 13 (Layoff and Reduction in Time) of the Agreement between the University of California and the Coalition of University Employees (CUE) this is to inform you that you will be temporarily laid off as an XXXXXX in the Department of XXXXX, effective XXXX through XXXX, (no longer than 120 calendar. , memo is an example of how publishers are breaking the bad news. EA laid off a whole bunch of staff today, and temporary CEO Larry Probst sent out a letter to employees that Kotaku has just obtained. In a letter to Twitter employees, Dorsey framed the layoffs as a means to refocus the company’s efforts. On the flip side, if you refuse to compose a letter that might be an issue too. " The purpose of this Blog is to provide a meeting place for employees of Los Alamos National Laboratory (LANL) to investigate the possibility & probability of legal or other actions to assure the rights of those affected by the VSP or their exclusion. layoff letter example fresh adjustment template pics termination. I am Bob Charles with student admission number 434 and I was approved for the admission at your University in Business Management course. SAMPLE – Reduction‐in Force (Reduced Work Hours) For layoffs by classification for reason of lack of funds or work, or abolition of a least 15 calendar. Not all these options will work in every situation and each UE local should consider how to tailor them to fit. com)—Sadly, the layoff memo has become somewhat required reading of late, as budget shearing descends over large agencies’ corporate headquarters and boutique shops alike. To conform to the Act, notices must be received 60 days before a closing or layoff. If you are a parent, you may be required to authorize-in writing-a day care center to seek emergency medical care for your child without requiring them to get in touch with you first. See "Employee Rights and Benefits" tool elsewhere in this section. How to answer questions about a layoff For example, "The layoff was a corporate decision "made for financial reasons, "and out of my boss's control. Award letters may include the Cost of Attendance (COA) for the academic year as well as a list of any financial aid programs that the student has been awarded. For an employer to write a layoff letter, there could be many reasons. Free flyer templates word. Microsoft's mangled layoff memo offers a lesson in how to write a crappy, insensitive note to employees, says career coach Marie McIntyre. Examples of layoff in a Sentence. An appointing authority may ask for an exception to any of the Rules in Chapter 17. City, State, Zip. Announce bad news to employees. Sample Layoff Letter You write a layoff letters in whatever manner, they are bound to anger employees, especially if the employees are not expecting it. In some situations, an employer doesn't have to give the full 60-day notice WARN would otherwise require. SAMPLE - Reduction‐in Force (Reduced Work Hours) For layoffs by classification for reason of lack of funds or work, or abolition of a least 15 calendar. Hence this letter is to notify your termination and please handover your resignation letter in next 48 hours to HR dept. " As the Microsoft Devices Group, our role is to light up this strategy for people. The layoff letter should explain the reason or reasons for the layoff clearly, concisely, and in a respectful manner. Last updated on January 16th, 2019. It provides a structure and key elements to avoid misunderstandings and disputes when ending an employee contract. The following information will inform you of the layoff procedure and your rights under the 2017-2019 NAPE/AFSCME Labor Contract. Difference between Lay-off and Retrenchment Last updated on May 11, 2017 by Surbhi S The biggest difference between layoff and retrenchment is that layoff is volatile in nature, i. Example: A layoff letter can say that, due to business difficulties, the organization will not retain employees who have been with the company less than a year. In the event of a layoff: 1) executive pay increases are frozen and executive pay is limited to no more than three times the median company salary (excluding executive pay). To avoid legal action, think of layoff letters as informal legal documents that include the following: Give reason for the layoff, explain without providing too much. Company restructure announcement sample. Such criteria must not conflict with existing company policy or a union agreement. He has to send out a companywide memo that. We have determined that we can modify practices to establish a higher level of resilience for our network while accommodating the needs. “Resist the temptation to conduct layoffs late in the day or on a Friday,” she underscores, “Doing so feeds the perception that the company does not care about its people, or worse, that. Below are the sample letters to rejoin the job for your convenience.
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How to Write A Layoff Press Release Announcement (Sample Template & Example). Don't shoot the messenger cause that's his job.

Kevin Kruse

layoff announcement example

Layoffs are one of the most stressful times for everyone in business. The employees let go are obviously stressed about their next role, how their finances might shake out, and other things. Surviving staff members worry that their jobs might be the next to go. And, HR leaders are stressed about conducting the event.

The good news is that, as HR professionals, you can make the event go over smoothly by simply having a great communication plan on paper before the event occurs. Writing a layoff memo ad-hoc is a great way to increase your stress levels, make mistakes, and have the event cost your organization more money in the long run.

The first step of the process is to announce that a layoff is happening at the organization. This initial communication - also called a layoff memo or layoff letter - needs to be iron clad if it’s to do its job without causing more headaches.

So, without further adieu, let’s jump right into how you can craft a great layoff memo to get the ball rolling on your event.

Writing a Layoff Memo: The Beginning

To make this process as easy as possible, we will start where all stories start: the beginning.

Like any letter, the layoff letter needs to start by addressing the employee by name and getting straight to the point.

While it may seem like an okay idea to beat around the bush and break the news lightly, it’s not. Nothing you can possible write in this letter is going to make the employee happier to receive it. So, start the letter quickly by saying what is going on.

Something like this:

"Dear [Employee Name], 

For the last several months, [Organization Name] has experienced financial difficulties due to economic changes within our industry. In the past years we have taken action to adapt to this new market with new product & processes. Unfortunately, this action has not resulted in increased profitability.

Explain that the company is downsizing due to whatever reason and that their job is impacted (more on this in a second). If you want to give a little more detail, wait until the second paragraph.

Writing a Layoff Memo: The Middle, Part One

The middle consists of two parts. The first is explaining why the layoff happened in the first place. Don’t put blame on employees, don’t try to sugar coat things, just explain that the layoff happened because of X reason.

Maybe the market took a downturn. Maybe new companies are increasing competition and hurting your bottom line. Maybe the move was simply to restructure and get back on the right track with workforce planning. It could be a number of reasons, but you have to let your staff know what the reason was. The real reason, not a lie.

Also, don’t try to console your staff too much in this letter. Have an open door policy so that staff members can come and see you directly to discuss their stress.

Here’s how this section of the layoff memo might work:

“Due to this climate, we have come to the decision to eliminate positions within the organization. It is with deepest regret that I must notify you of your position being eliminated from the organization.”

Short. Sweet. And to the point. It shows you care without bending over backwards to console staff members.

Let’s move on to the second part.

Writing a Layoff Memo: The Middle, Part Two

You need to transition the letter to setting up the layoff meeting. This involves stating that a member of HR will reach out to the staff member with a phone call to set up a time to go over the layoff process.

Alert the staff member that benefits will be discussed during this meeting. You can let the staff member know that there will be outplacement services included in these benefits in the letter, though, because it lets them know right off the bat that they won’t be going through this transition alone, which can ease tension.

Here’s an example of how this section can look:

“Someone from Human Resources will call you to set up a meeting in the coming days to discuss this process and the overall implications. The HR representative will discuss with you your separation benefits. These benefits include the use of an outplacement service for assistance in finding a new position through resume writing and career counseling services. Please feel free to ask this HR representative any questions in relation to the position elimination.”

In this section, you may also want to explain how severance will work and also if outplacement services are provided. Pro tip: it should be. By providing outplacement and a strong severance agreement, your staff will know that they are in good hands if they are one of those being let go.

As for severance itself, you can go on to explain how the process works, how the pay structure operates, and other things that people might be curious about.

Again, don’t spend a lot of time. This is a memo not a novel, and it should read quickly. Explain that if people have any questions that they can send you an email or meet with you in person to go over the company’s policies pertaining to reduction events.

After you nail this part down, you can move on to close out the layoff memo.

Writing a Layoff Memo: The End of the Letter

This section of the letter is super short. Really, you just want to thank the employee for all they have done at the organization and then sign off.

Again, it’s important to stay on task here. Don’t go on and on after you have explained what needs explained. You can simply end with a one sentence send off and then start to call those who are impacted by the event.

Here’s an example:

“We appreciate all of the good work you have done during your employment.

Regards,

Executive Name”

That should conclude your letter and allow you to send it off. However, you also have to make sure you handle the event in a legal way, which means checking in with your legal team, especially when you are letting go a group or have staff members that are over the age of 40 years old.

The Final Say

If you follow these steps, you will be well on your way to crafting a great layoff memo that will inform your staff of the upcoming events without causing additional stress.

As always, make sure you check in with your legal counsel to ensure that your reduction event is compliant with all local, state, and federal laws. There are many rules and regulations that dictate how RIFs and layoffs need to be handled, especially for workers over the age of 40.

You can learn more about some of these laws, including WARN Acts, with our additional resources here:

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Announcement of Layoff Letter

layoff announcement example

Two great forces are transforming the very nature of work: automation and ever fiercer global competition. To keep up, many organizations have had to rethink their workforce strategies, often making changes that are disruptive and painful. Typically, they turn to episodic restructuring and routine layoffs, but in the long term both damage employee engagement and company profitability. Some companies, however, have realized that they need a new approach.

Consider the case of Nokia. At the beginning of 2008 senior managers at the Finnish telecom firm were celebrating a one-year 67% increase in profits. Yet competition from low-cost Asian competitors had driven Nokia’s prices down by 35% over just a few years. Meanwhile, labor costs in Nokia’s Bochum plant in Germany had risen by 20%. For management, the choice was clear: Bochum had to go. Juha Äkräs, Nokia’s senior vice president of human resources at the time, flew in to talk about the layoff with the plant’s 2,300 employees. As he addressed them, the crowd grew more and more agitated. “It was a totally hostile situation,” he recalls.

The anger spread. A week later 15,000 people protested at Bochum. German government officials launched an investigation and demanded that Nokia pay back subsidies it had received for the plant. Unions called for a boycott of Nokia products. The news was filled with pictures of crying employees and protesters crushing Nokia phones. Ultimately, the shutdown cost Nokia €200 million—more than €80,000 per laid-off employee—not including the ripple effects of the boycott and bad press. The firm’s market share in Germany plunged; company managers estimate that from 2008 to 2010 Nokia lost €700 million in sales and €100 million in profits there.

In 2011, when Nokia’s mobile phone business tanked, its senior leaders decided they needed to restructure again. That would involve laying off 18,000 employees across 13 countries over the next two years. Chastened by their experience in Germany, Nokia’s executives were determined to find a better solution. This time, Nokia implemented a program that sought to ensure that employees felt the process was equitable and those who were laid off had a soft landing.

One of us, Sandra, has spent eight years researching best practices for workforce change in global multinational companies. She has seen that all too frequently companies do bad layoffs, do layoffs for the wrong reason, or worse, do both. By “bad,” we mean layoffs that aren’t fair or perceived as fair by employees and that have lasting negative knock-on effects. The job cuts in Bochum ignited outrage because Nokia had generated so much profit the year before. Consequently, they were seen as unjust and took a steep toll on Nokia’s reputation and sales. And when we say “wrong reasons,” we mean done to achieve short-term cost cuts instead of long-term strategic change. In 2008, Nokia did have the right reasons, but it still suffered because of its process.

Some governments, recognizing the massive damage layoffs create, have written laws protecting employees against them. For example, a number of European countries require companies to provide a social or economic justification before they can conduct layoffs. France, however, recently eliminated the requirement to provide an economic justification, and in the United States companies can conduct layoffs at will. Regardless of how easy it might be to cut personnel, executives should remember that doing so will have consequences.

The research clearly shows that bad layoffs and layoffs for the wrong reasons rarely help senior leaders accomplish their goals. In this article, we’ll present a better approach to workforce transitions—one that makes sparing use of staff reductions and ensures that when they do happen, the process feels fair and the company and the affected parties are set up for success.

Why Layoffs Are Ineffective

If Nokia’s story sounds familiar, albeit a little more colorful than usual, that’s because it is. In the United States alone, the Bureau of Labor Statistics reports, 880,000 to 1.5 million people were laid off annually from 2000 to 2008 and from 2010 to 2013 (the last year data was compiled). This happened even when the economy was expanding. During 2009, the height of the Great Recession, 2.1 million Americans were laid off. Globally, unemployment rose by 34 million from 2007 to 2010, data from the International Labour Organization shows.

Layoffs have been increasing steadily since the 1970s. In 1979 fewer than 5% of Fortune 100 companies announced layoffs, according to McMaster University sociology professor Art Budros, but in 1994 almost 45% did. A McKinsey survey of 2,000 U.S. companies found that from 2008 to 2011 (during the recession and its aftermath), 65% resorted to layoffs. Today layoffs have become a default response to an uncertain future marked by rapid advances in technology, tumultuous markets, and intense competition.

Yet other data on layoffs should give companies pause. In a 2012 review of 20 studies of companies that had gone through layoffs, Deepak Datta at the University of Texas at Arlington found that layoffs had a neutral to negative effect on stock prices in the days following their announcement. Datta also discovered that after layoffs a majority of companies suffered declines in profitability, and a related study showed that the drop in profits persisted for three years. And a team of researchers from Auburn University, Baylor University, and the University of Tennessee found that companies that have layoffs are twice as likely to file for bankruptcy as companies that don’t have them.

All too frequently, senior managers dismiss such findings. Some argue that since companies do layoffs because they’re already in bad shape, it’s no surprise that their financial performance may not improve. Layoffs are so embedded in business as a short-term solution for lowering costs that managers ignore the fact that they create more problems than they solve.

Companies that shed workers lose the time invested in training them as well as their networks of relationships and knowledge about how to get work done. Even more significant are the blighting effects on survivors. Charlie Trevor of University of Wisconsin–Madison and Anthony Nyberg of University of South Carolina found that downsizing a workforce by 1% leads to a 31% increase in voluntary turnover the next year. Meanwhile, low morale weakens engagement. Layoffs can cause employees to feel they’ve lost control: The fate of their peers sends a message that hard work and good performance do not guarantee their jobs. A 2002 study by Magnus Sverke and Johnny Hellgren of Stockholm University and Katharina Näswall of University of Canterbury found that after a layoff, survivors experienced a 41% decline in job satisfaction, a 36% decline in organizational commitment, and a 20% decline in job performance.

While short-term productivity may rise because fewer workers have to cover the same amount of work, that increase comes with costs—and not only to the workers. Quality and safety suffer, according to research by Michael Quinlan at the University of New South Wales, who also found higher rates of employee burnout and turnover. Meanwhile, innovation declines. For instance, a study of one Fortune 500 tech firm done by Teresa Amabile at Harvard Business School discovered that after the firm cut its staff by 15%, the number of new inventions it produced fell 24%. In addition, layoffs can rupture ties between salespeople and customers. Researchers Paul Williams, M. Sajid Khan, and Earl Naumann have found that customers are more likely to defect after a company conducts layoffs. Then there’s the effect on a company’s reputation: E. Geoffrey Love and Matthew S. Kraatz of University of Illinois at Urbana–Champaign found that companies that did layoffs saw a decline in their ranking on Fortune’s list of most admired companies.

Employees who are downsized pay a price beyond the immediate loss of their jobs. Wayne Cascio, a professor at the University of Colorado, points to the Labor Department’s survey of workers who were laid off during 1997 and 1998, an economic upswing. Most were worse off a year later: Only 41% had found work at equal or higher pay, 26% had found jobs at lower pay, and another 21% were still unemployed or had left the workforce entirely. The effects follow people throughout their lives. A 2009 Columbia University study that looked at employees who had been laid off during the 1982 recession showed that 20 years later they were still earning 20% less than peers who had kept their jobs. The aftershocks aren’t limited just to earnings: According to a study by Kate Strully, an assistant professor at SUNY, laid-off employees have an 83% higher chance of developing a new health condition in the year after their termination and are six times more likely to commit a violent act.

The Search for Alternatives

A few companies have been experimenting with better ways to handle their changing workforce needs. Take AT&T. In 2013 the company’s leaders concluded that 100,000 of its 240,000 employees were working in jobs that would no longer be relevant in a decade. Instead of letting these employees go and hiring new talent, AT&T decided to retrain all 100,000 workers by 2020. That way, the company wouldn’t lose the knowledge the employees had developed and wouldn’t undermine the trust in senior management that was necessary to engagement, innovation, and performance. So far, the results seem very positive. In a 2016 HBR article, AT&T’s chief strategy officer, John Donovan (now CEO of AT&T Communications), noted that 18 months after the program’s inception, the company had decreased its product development cycle time by 40% and accelerated its time to revenue by 32%. Since 2013, its revenue has increased by 27%, and in 2017 AT&T even made Fortune’s 100 Best Companies to Work For list for the first time.

In her work, Sandra has studied seven companies that, like AT&T, have successfully pursued alternatives to traditional layoffs. An analysis of their experiences reveals that an effective workforce change strategy has three main components: a philosophy, a method, and options for a variety of economic conditions.

A philosophy.

A workforce change philosophy serves as a compass for senior leaders. It builds on a company’s values and spells out the commitments and priorities the company will abide by as it implements change. A philosophy helps leaders answer the following questions:

  • What value do we believe employees contribute to our business and its success?
  • What expectations do we have for employees’ engagement, loyalty, flexibility, and ability to adapt and grow?
  • What do we owe employees as a fair exchange for what they have given us?
  • How can employees help us develop and implement workforce change?

The philosophy of the French tire maker Michelin, for example, includes hiring people for their potential rather than for the job. In its labor relations policy, the company describes its commitment to employees’ long-term growth. Each employee is assigned a career manager who oversees his or her development and helps make sure it aligns with Michelin’s needs.

The company also has a defined approach to workforce change and restructuring. Michelin’s labor relations policy described it like this in 2013:

Restructures are inevitable in certain circumstances in order to maintain the company’s global competitiveness. These restructures must, as far as possible, take place at times when the company’s health allows mobilization of adequate resources to attenuate the social consequences. Whenever possible, staff at the entities concerned and their representatives are invited to work together to seek and suggest solutions for restoring competitiveness and reducing overcapacity, which may open up an alternative to closing an activity or site. When restructuring is unavoidable, it must be announced as soon as possible and carried out according to the procedures negotiated with the staff representatives. The ensuing changes on a personal level must be supported for as long as is necessary to ensure that the reclassified employees find a satisfactory solution in terms of standard of living, stability, family life and self-esteem.

When Nokia was contemplating that massive workforce reduction in 2011, its senior leaders articulated a philosophy with four core values:

  1. We will accept our responsibility as the driver of the local economies and aim for the highest of aspirations in supporting our previous and current employees.
  2. We will take an activist role and lead the program with our brand, expertise, and resources in the key areas that matter most.
  3. We will involve all of the relevant parties in the program design and operations.
  4. We will communicate openly towards all stakeholders, including employees, unions, government, and local stakeholders, even when we do not know the full answers.

As Nokia’s philosophy highlights, workforce change can affect many people beyond employees. A company must communicate its intent directly without leaving any of them in the dark or piecing together scraps of information to figure out what the future holds.

A method.

Having a clear methodology will allow companies to explore alternatives to layoffs, and if they cannot be avoided, minimize the harm they cause. To establish one, firms need to address three questions:

  • How will we plan for workforce change on an ongoing basis?
  • Who will be accountable for managing and supervising it?
  • What metrics should we use to determine whether our actions are effective?

In 2013, Michelin’s CEO, Jean-Dominique Senard, asked the members of his team to turn the insights they’d gathered from the previous decade’s restructuring efforts into a formal process for workforce change. As a result, Michelin integrated three planning processes—product planning, territory planning, and restructuring planning—into one. The product-planning groups project their anticipated production for the next five years, and then the territories identify which regions will have too much or too little production capacity and what technologies each factory will need. The restructuring plans come out of the dialogue between the product and territory heads. For example, in October 2013, Michelin determined that it would have overcapacity for truck tire production in its Budapest factory and decided to close it in mid-2015. By making that call early, Michelin’s team had time to carefully plan objectives for the shutdown and create a way to reduce the impact on the affected employees (something we’ll discuss more later).

Michelin has set up an accountability structure that clearly delineates who is responsible for what. The company’s executive committee, led by the CEO, oversees workforce change globally. Because more than 50% of Michelin’s factories and most of its workforce reductions are in Europe, a European restructuring committee supports the executive committee. It identifies factories that should be closed or downsized and directly oversees all European restructurings. Finally, Michelin establishes a committee for each factory that will be affected, consisting of regional and country executives who are responsible for implementing the restructuring plan. Two senior executives at headquarters—a director of restructuring and a director of product planning—coordinate the entire process.

Like any other good strategy, an effective workforce change strategy includes goals against which success can be measured. An example of these comes from Honeywell. In the 2001 recession, right before Dave Cote became its CEO, the company laid off 25,000 employees, or nearly 20% of its staff. Sales fell by 11% from 2000 to 2002. When the recession hit in 2008, and it looked as if more workforce changes might be required, Cote set two goals: to improve on Honeywell’s poor performance during the 2001 recession, and to be in a stronger position than its competitors when the recovery came.

To measure the first goal, Cote decided to compare the company’s sales, net income, and free cash flow figures for the two recessions. As it turns out, the firm was able to improve substantially on all three measures. In 2009 Honeywell’s sales were 39% higher than its 2002 sales, its free cash flow was 94% higher, and its net income was more than six times higher. To monitor progress on the second goal, performance against competitors, financial data providers developed two measures: the percent change in operating income from the 2007–2008 peak to 2011, and total stock returns in 2012. At +1.8%, Honeywell had the highest postrecession increase in operating margins (versus -4.5% to +1% among its peers). And at 75.28, Honeywell also had the highest three-year total stock return in 2012, 50% better than its closest competitor’s return and four times better than the lowest-performing competitor’s.

Options for a variety of economic conditions.

A workforce change strategy should anticipate three different scenarios: a healthy present, short-term economic volatility, and an uncertain future.

A healthy present. In the immediate term, senior leaders should practice disciplined hiring and use stringent performance metrics to build a strong organization that can weather change. A lean approach to staffing will help companies avoid yo-yoing between overexuberant hiring during growth and damaging staff reductions when demand falls.

Before Cote began his turnaround in 2002, Honeywell had a policy of hiring freely during good times and then cutting jobs in downturns. The drastic head count reduction of 2001 was too much for Cote, who responded by introducing hiring controls. Senior leaders had to justify how staff additions would help new-product or market development, and if they couldn’t, had to trim costs elsewhere to fund the hires.

Too often managers use layoffs as an excuse to avoid difficult discussions about performance. Many companies practice “rank and yank” layoffs to thin out weaker employees, often on an annual basis, but it’s more productive to use meaningful performance reviews and employee development plans to cultivate a base of high performers. Lincoln Electric, an arc-welding products and consumables manufacturer headquartered in Cleveland, Ohio, has had a no-layoff policy in its U.S. operations since 1958. Part of the reason it maintains that policy is that it has a reputation for high-quality and efficient staff, thanks to very strict performance standards and a rigorous evaluation process. Employees are assessed twice a year in five areas. Performance is competitive within departments, and performance ratings are tied to a merit-based compensation system. Employees who fall in the bottom 10% receive an improvement plan and, if they remain there consistently, are eventually let go.

Short-term volatility. Experienced managers develop a range of ways to reduce costs without resorting to destructive layoffs. Three approaches implemented by Honeywell, Lincoln Electric, and Recruit Holdings, a Japanese human resources and advertising media conglomerate, demonstrate how much room there is for creative management during downturns.

During the Great Recession, Cote used furloughs instead of layoffs at Honeywell. Having weathered three recessions when he was at GE, he had developed a sense for when a business cycle might run its course. Two years before any sign that the economy was in trouble, he began to pull back on hiring. Once the recession hit, Honeywell furloughed employees for one to five weeks, providing unpaid or partially compensated leaves, depending on local labor regulations. According to an article by Tom Starner in Human Resource Executive, the company’s finance department estimated that furloughs saved Honeywell the equivalent of 20,000 jobs.

In a 2013 article he wrote for HBR, Cote explained, “I’ve never heard a management team talk about how the choices they make during a downturn will affect performance during a recovery….I kept reiterating that point: There will be a recovery, and we need to be prepared for it.” Furloughs allowed Honeywell to retain the talent it needed when demand resurged and helped it stay profitable throughout the recession and achieve strong growth during the five years after the recovery.

In 2000, Recruit Holdings developed an innovative system, Career View, through which it hires employees with nontraditional backgrounds as three-year contractors. The system helps Recruit achieve two goals: expand its reach outside Japan’s major cities and increase workforce flexibility—a real feat given that Japanese companies traditionally don’t do layoffs. The program targets rural employees who lack the education and experience to land a job at a major Japanese corporation, hiring them as sales associates for regional offices near their hometowns. Six months after joining Recruit, these contractors meet with career counselors to discuss their goals. They also receive detailed performance reviews that lay out the skills they’re developing, the skills they need to get their next job—generally at another company—and what they can do to bridge the gap between the two. Approximately 90% of Career View employees are able to get another job at the end of their three-year stints, and Recruit is able to expand its regional presence and adjust its sales staffing up or down according to the economic cycle.

Lincoln can avoid layoffs because it requires employees to accept flexible assignments. Employees are expected to work extra hours when demand ramps up, and they understand that they’ll work shorter hours when it ramps down. In addition, they can be reassigned to any other job, including one with a lower salary, for the duration of a downturn. When orders fell during the Great Recession, for instance, Lincoln moved some factory workers into sales. Those employees developed a deeper understanding of Lincoln, and customers benefited because the factory workers had a thorough knowledge of the firm’s products. In addition, during economic lulls, Lincoln’s leaders automatically shift their priorities to initiatives they aren’t able to fully attend to when business is booming, such as developing quality improvements, scrap-reduction programs, research and development projects, and maintenance tasks—all enabled by the availability of skilled employees who have more time to help out when demand falls.

An uncertain future. Market shifts, new technologies, and new competition can require companies to do major restructuring. Before considering a layoff, they should see if they can take a cue from AT&T’s transformation.

Michelin, for one, has embraced transformations as part of its workforce strategy. When Bertrand Ballarin joined the company, in 2003, one of his first jobs was to manage a factory in Bourges, France, that was going to be shut down. He gathered its managers and union reps, explained the situation, and gave them a year to come up with a plan to save the plant. After analyzing how other Michelin plants were producing airplane tires, one of three product lines handled in the factory, the team concluded that the Bourges facility had a better, more consistent industrial process for making them than the other plants did. The team successfully argued that Bourges should specialize in airplane tires and get a new research center to aid product development.

In 2013, Michelin began applying the lessons from Bourges to a factory in Roanne, France, that was at risk of being shut down. From October 2014 to March 2015, more than 70 individuals, including leaders from headquarters, union representatives, plant managers, and employees, met to develop a transformation strategy for Roanne. Rather than closing the facility and laying off its employees, Michelin agreed to put €80 million into creating a new line of premium tires there; the head count would fall from 850 to 720 employees through natural attrition. Instead of the traditional four teams working Monday to midday Saturday, the plant would reorganize into five teams that kept operations running seven days a week around the clock, and all employees would work six additional days a year. These changes allowed the plant to flex production up or down by 12% according to market conditions. In addition, Michelin dedicated €2 million to programs for improving the quality of management and work-life balance—issues that had emerged during the transformation strategy planning—for the plants’ employees.

However, there are times when a transformation isn’t possible or the transformation itself results in layoffs. In these cases, companies have to ensure that employees are treated fairly. This isn’t just about being a good Samaritan. Datta found that companies tended to get better financial results after a layoff when employees thought it was handled equitably and done for strategic reasons rather than cost cutting.

Let’s look again at what happened at Nokia in 2011, when its senior leaders realized the company needed another restructuring. Then-chairman Jorma Ollila was determined to avoid another Bochum. To help the company do so, a small team of senior leaders developed Nokia’s Bridge program, which aimed to see that as many employees as possible had a new opportunity lined up the day their current job ended. Nokia opened Bridge centers in the 13 countries where the layoffs would take place. The program outlined five paths employees could choose from:

1. Find another job at Nokia.

In order to avoid favoritism, selection committees were formed to determine which employees to retain, instead of having local managers choose.

2. Find another job outside Nokia.

The centers offered outplacement services, including career coaching, résumé workshops, career fairs, and networking events.

3. Start a new business.

Individual employees or teams could present business proposals to win grants of up to €25,000. Employees were given two months to develop their plans, as well as support such as coaching and mentoring, networking introductions, and training. Nokia took no stake in any of the funded businesses.

4. Learn something new.

Nokia offered training grants for business-management and trade-school courses in many areas, including restaurant management, cosmetology, construction, and firefighting.

5. Build a new path.

The company offered financial support to employees who had personal goals they wanted to accomplish, such as volunteering.

Nokia spent €50 million on Bridge, or about €2,800 per employee. That accounted for just 4% of the €1.35 billion it spent on restructuring from 2011 to 2013. As a result of the program, 60% of the 18,000 affected workers knew their next step the day their jobs ended. Overall, 85% of the Finnish Bridge participants said they were satisfied with the program, while 67% of global employees said they were. Furthermore, the layoff candidates and the remaining employees maintained or improved quality levels throughout the restructuring. Employees at the sites that were targeted for downsizing achieved €3.4 billion in new-product revenues, one-third of new-product sales—the same proportion they had brought in before. Employee engagement scores in all areas of the company held steady throughout the restructuring. And, unlike the situation in Bochum, there were no labor actions of any kind in the 13 countries where the layoffs happened. By all accounts Nokia had indeed found a better approach to workforce change.

In 2017, three years after selling its devices and services business to Microsoft, Nokia used an enhanced version of the Bridge program to handle its latest restructuring. Microsoft Finland has rolled out a similar program. And Finland’s government has even taken cues from Bridge and incorporated ideas from it into legislation outlining what companies that conduct layoffs are required to provide for affected employees.

CONCLUSION

One of the biggest questions organizations face as they grapple with a constantly shifting economic landscape is whether their current workforce can help them make the transitions necessary to their success. While companies tend to prioritize short-term financial results over the long-term well-being of their employees, employees are the lifeblood that enables a company to keep delivering the products and services that ultimately generate shareholder benefits. Michelin’s and Nokia’s experiences show that employees can and should be trusted to perform well, even when they know they might lose their jobs. For all companies, planning thoughtful workforce change instead of automatically resorting to layoffs is a better way to address the vicissitudes of technological transformation and intensifying competition.

A version of this article appeared in the May–June 2018 issue (pp.122–129) of Harvard Business Review.

After a layoff, survivors experienced a 20% decline in job performance.

A workforce change strategy should anticipate three different scenarios.

Too often managers use layoffs as an excuse to avoid difficult discussions.

In addition, we find that the firms that cluster layoff announcements . For our sample of privately held firms we find no such clustering behavior either before or .

Layoffs That Don’t Break Your Company

layoff announcement example

Perhaps the most demoralizing change a workforce can undergo, layoffs require honest and open communication from business owners. Failure to communicate your plans effectively will anger the employees you’re letting go and damage the morale of the employees you’re keeping. The ensuing insecurity could decrease worker loyalty permanently.

Solidify Plans

Finalize the details of the layoffs before the announcement. Your entire workforce will be nervous about layoffs, even if the changes don’t affect them directly. Post-announcement changes could make employees even more insecure if it seems management lacks a solid plan and is instead grasping at straws.

Prepare for Questions

Prepare answers to all the tough questions employees might have so managers know how to respond to irate or confused employees. A clear, detailed FAQ document helps managers communicate the layoffs without feeling overwhelmed, according to “The Definitive Guide to HR Communication: Engaging Employees in Benefits, Pay and Performance” by Alison Davis and Jane Shannon. Issues you should address include how many people will be laid off, what chances exist for future rounds of layoffs and how the layoffs affect employee benefits.

Choose an Approach

Announce the layoff in person if the group is small. If it’s large, delegate the task to capable managers and have them make the announcement in person. Using impersonal communication methods, such as emails or text messages, loses the respect of your workforce, even those who have still have their jobs, according to “The Complete Idiot's Guide to Boosting Employee Performance” by Marc Dorio and Susan Shelly.

Announcement

Schedule a private announcement to managers an hour or so before the general announcement. A short timeline limits the spread of unsettling rumors, which can destroy worker morale quickly. Immediately after the general announcement, schedule smaller meetings so department heads can respond to specific questions using the FAQ you prepared earlier.

Explanation

Explain the reasons for the layoffs, the scope of the changes and the long-term plan for recovery. Resist the temptation to sugarcoat or obfuscate — these tactics are obvious and hurt your credibility. Instead, respect your employees by being open and honest so they can plan their futures effectively. If there is a chance they can return to work in the future, let them know, but don't offer false hope.

Considerations

Announcing the layoffs on a Friday gives employees time to decompress, according to "Reality Check: The Irreverent Guide to Outsmarting, Outmanaging and Outmarketing Your Competition" by Guy Kawasaki. Offer access to career counselors to help employees transition. If you expect a tense atmosphere, ask your human resources department to help you assuage fears and calm angry employees. If necessary, bring in extra security to maintain a safe atmosphere for all.

About the Author

Stan Mack is a business writer specializing in finance, business ethics and human resources. His work has appeared in the online editions of the "Houston Chronicle" and "USA Today," among other outlets. Mack studied philosophy and economics at the University of Memphis.

Photo Credits

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Announcement of Layoff Letter. By Letter Writing. The most difficult task for a company or organization employer is to layoff the staff workers of the company.

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