Employee Layoff Letter Template

An employee layoff letter template is a formal document that informs an employee that their position is being terminated due to business-related reasons — such as restructuring, downsizing, or budget constraints. Unlike a termination for cause, a layoff is not a reflection of the employee’s performance, but rather an organizational decision.

Writing this letter can be emotionally challenging for HR professionals and business leaders. However, delivering a layoff message with empathy, transparency, and professionalism helps maintain dignity and trust during a difficult moment.

In this article, you’ll learn how to write a clear, legally sound, and compassionate layoff notice — including structure, examples, tone tips, and formatting guidance that make a tough message easier to deliver.

Key Elements of an Employee Layoff Letter Template

Every layoff letter should communicate the decision clearly while offering support and next steps. Here are the key sections to include:

• Date and Employee Information: Include the date of issue and the employee’s full name, position, and department.
  Example: “Date: March 1, 2025 | Employee: Sarah Johnson, Marketing Coordinator.”
• Greeting: Address the employee respectfully and directly.
  Example: “Dear Sarah,”
• Reason for Layoff: Clearly state the reason behind the layoff, emphasizing that it’s not performance-related.
  Example: “Due to recent budget reductions and company restructuring, we regret to inform you that your position has been eliminated.”
• Last Working Day: Specify the effective date of employment termination.
  Example: “Your last working day will be March 31, 2025.”
• Severance and Benefits: Outline any severance pay, unused leave payouts, and continuation of benefits.
  Example: “You will receive two weeks of severance pay and reimbursement for any unused vacation days.”
• Support and Resources: Offer assistance such as career counseling, references, or job placement help.
  Example: “Our HR department will provide support in your transition, including job search resources.”
• Appreciation and Closing: Express gratitude for the employee’s contributions and wish them well.
  Example: “We sincerely appreciate your dedication and professionalism during your time here.”

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Tips: Do’s and Don’ts for Writing a Layoff Letter

Do’s

• Be transparent: Explain the business reasons without overcomplicating or sounding defensive.
• Show empathy: Use language that acknowledges the emotional impact on the employee.
• Keep it brief: Avoid long justifications; focus on clarity and respect.
• Offer help: Mention outplacement services, references, or counseling support.
• Ensure legal accuracy: Align with company policy and labor laws.

Don’ts

• Don’t use vague language: Avoid phrases like “we may” or “we’re considering.” Be direct.
• Don’t assign blame: The tone should be factual and compassionate, not personal.
• Don’t delay communication: Give enough notice and deliver the letter promptly.
• Don’t mix messages: Keep the letter focused on the layoff; avoid performance discussions.
• Don’t email it without context: Whenever possible, deliver the letter in person or during a meeting.

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Sample Templates

General Employee Layoff Letter Template

When to use: For standard layoffs due to financial or structural changes.

Subject Line: Notice of Employment Layoff

Letter:
Date: [Date]
Dear [Employee Name],
We regret to inform you that due to [reason, e.g., organizational restructuring and financial challenges], your position as [Job Title] will be eliminated effective [Last Working Day].
This decision is not a reflection of your performance but a necessary step to align our operations with current business needs. You will receive [details of severance pay, benefits, or assistance].
We appreciate your hard work, professionalism, and dedication. Please contact [HR Contact] for details about your final paycheck and benefits continuation.
Sincerely,
[Manager’s Name] 

[Title]

[Company Name]

Mass Layoff Letter Template

When to use: When multiple employees are affected due to downsizing.

Subject Line: Important Notice Regarding Workforce Reduction

Letter:
Dear [Employee Name],
As part of our company-wide restructuring, we must make the difficult decision to reduce our workforce effective [date]. Unfortunately, this means your role as [position] will be discontinued.
You will receive [severance details, benefit information, and transition support]. Our HR team will assist you with necessary paperwork and career transition resources.
We are truly grateful for your service and commitment. This change was not easy and does not diminish your valuable contributions.
Thank you for your understanding and professionalism during this transition.
Warm regards,
[Manager’s Name]
[Company Name]

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Temporary Layoff Letter Template

When to use: For layoffs expected to be short-term or due to temporary business conditions.

Subject Line: Temporary Layoff Notification

Letter:
Dear [Employee Name],
Due to [reason, e.g., seasonal business slowdown or temporary closure], your employment will be temporarily suspended effective [date]. We anticipate resuming normal operations on [anticipated return date]. During this time, you will retain eligibility for [benefits or unemployment assistance, if applicable]. HR will keep you updated on any changes in scheduling or business operations.
We value your contributions and look forward to welcoming you back soon.
Sincerely,
[Manager’s Name]
[Title]
[Company Name]

Formatting Tips

• Font: Use professional fonts like Arial, Times New Roman, or Calibri (11–12 pt).
• Format: Left-aligned, single-spaced, and printed on company letterhead.
• Tone: Maintain formality while being compassionate.
• Delivery: Prefer in-person or video meetings over email for sensitive communications.
• Digital Copy: If emailing is necessary, attach the signed letter as a secure PDF file.

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FAQs

How do I write an employee layoff letter template?

Include the reason for the layoff, last working date, severance details, and a respectful closing. Keep the tone professional and empathetic.

What should I include in a layoff letter?

Mention the effective date, reason, severance pay, and any transition assistance offered.

Can I email a layoff letter? 

It’s best delivered in person or via a private meeting. However, you can email a follow-up copy for documentation.

How do I make a layoff letter sound compassionate?

Acknowledge the employee’s contributions, avoid blame, and express appreciation for their work.

What’s the difference between a layoff and termination?

A layoff is due to business needs (not performance-related), while a termination often involves performance or conduct issues.

Conclusion

An employee layoff letter template helps HR professionals handle a difficult process with compassion, clarity, and professionalism. It protects both the company’s integrity and the employee’s dignity while ensuring legal compliance.

By following a structured format and tone of empathy, you can make the process smoother and more respectful for everyone involved. Explore more HR communication templates on MsCareerGirl.com to strengthen your leadership and communication skills.