Writing

How to Write a Layoff Letter

Spencer LanoueSpencer Lanoue
Writing

Writing a layoff letter is one of those tasks that no one really looks forward to. It's a delicate balance of communicating necessary business decisions while being compassionate to those affected. If you're facing this assignment, don't worry. I've got your back. We'll go through the essentials of crafting a layoff letter that is clear, empathetic, and professional. By the end, you'll have a good handle on how to handle this sensitive task.

🔮
The AI Alternative to Google Docs & Word:
Save time by letting Spell write your docs for you. Turn hours of doc writing work into minutes. Try it free →

Setting the Right Tone

When it comes to a layoff letter, the tone is everything. You want to be respectful and considerate, yet firm and clear. The goal is to convey the information in a manner that is both professional and humane. No one likes to be the bearer of bad news. How you present that news can make a big difference in how it's received.

Consider starting the letter with a line that acknowledges the difficulty of the situation. For example, "We regret to inform you that due to unavoidable circumstances, we have to make some difficult decisions." Such an opening sets the tone for the rest of the letter. It shows that the decision wasn't made lightly, which can go a long way in maintaining some goodwill.

Be Direct and Clear

Clarity is crucial when you're writing a layoff letter. This isn't the time for ambiguity or sugar-coating. State the purpose of the letter early on, ideally in the first or second sentence. For example, you might say, "Unfortunately, we have to let you go due to [reason]." This approach lets the recipient quickly understand the main point.

Why is clarity so important? Well, receiving a layoff letter is already stressful enough. You don't want to add to that stress by leaving the person confused about what's happening. The more straightforward you can be, the better.

Additionally, make sure to include specific details like the last day of employment and any immediate actions the employee needs to take. This helps to eliminate any guesswork and allows the recipient to plan accordingly.

Provide a Reason

People deserve to know why they're being laid off. Being transparent about the reason can make the news easier to digest. Whether it's due to budget cuts, departmental restructuring, or poor company performance, stating the reason can help the employee understand that it's not a personal attack.

Here's a brief example:

Due to a significant downturn in our industry, we are forced to reduce our workforce to ensure the company's sustainability.

Transparency can help mitigate feelings of resentment or confusion. It also reinforces your integrity as a leader, demonstrating that you're being upfront about the circumstances.

The AI-First Document Editor
Spell is the AI-powered alternative to Google Docs and Microsoft Word.
Get started for free

Offer Support and Resources

One way to soften the blow is to offer support during the transition. This could include things like severance packages, job placement services, or access to mental health resources. Providing these can show your employees that you value their contributions and well-being, even as they leave the company.

Here’s how you might phrase it:

We are providing a severance package that includes two months of salary and access to our job placement services to assist you in finding a new role.

Offering support is not just about being kind; it’s also a smart business move. Employees who feel cared for are less likely to speak negatively about the company and can even become advocates in their future endeavors.

Include Next Steps

After delivering the main message, it’s essential to outline what comes next. This includes when the layoff takes effect, how the employee can collect their belongings, and what happens with their benefits. Providing a clear roadmap helps make the transition smoother.

For example:

Your last working day will be March 31. Human resources will reach out to you to discuss the collection of any personal items and to go over your benefits details.

Providing this information upfront helps manage expectations and reduces uncertainty, which can be a huge relief during such a stressful time.

Express Gratitude

Even though the news is not what anyone wants to hear, showing appreciation for the employee's hard work can make a difference. A simple thank-you can go a long way in maintaining a positive relationship.

Something like this works well:

We want to take this opportunity to thank you for your contributions to the company. Your hard work and dedication have not gone unnoticed.

Expressing gratitude doesn’t just help the person leaving; it also sets a positive tone that can influence the remaining team members.

Go From Idea to Polished Doc 10x Faster With Spell 🪄
Get started for free

Keep It Professional

While it's essential to be empathetic, it's equally important to maintain professionalism. A layoff letter is a formal document, and it should reflect that. Avoid informal language or overly emotional expressions. The aim is to strike a balance between being human and maintaining a professional demeanor.

Stick to formal language, but don't make it so stiff that it feels cold. For instance, instead of saying, "It's been great working with you," you could say, "Your professional contributions have been invaluable."

Review and Revise

Before sending the letter, make sure to review it carefully. Look for any areas that might be misunderstood or that could be phrased more clearly. It can be helpful to have a colleague or HR professional review it as well.

Mistakes or unclear language could lead to unnecessary confusion or upset, so it's worth taking the time to ensure the document is polished. If you find yourself stuck, consider using Spell to help draft and refine your letter. Spell’s AI-powered editor can help you make sure your language strikes the right balance between clarity and empathy, while also catching any grammatical errors.

The AI Alternative to Google Docs
Go from idea to polished doc in seconds with Spell's AI-powered document editor.
Create my first doc

Use a Template

If you’re struggling to start from scratch, using a template can be incredibly helpful. A template provides a structured format that you can customize to fit your specific circumstances. Here’s a basic template to get you started:

[Your Company Letterhead]

[Date]

[Recipient's Name]  
[Recipient's Address]

Dear [Recipient's Name],

We regret to inform you that due to [reason for layoff], your position with [Company Name] will be terminated effective [date]. This decision was not made lightly, and we truly appreciate your contributions to the company.

To assist you during this transition, we are offering [details of severance package, services, or other support]. Your final paycheck and any accrued benefits will be provided to you by [date].

Please reach out to HR should you have any questions regarding your benefits or next steps. We want to thank you for your hard work and dedication during your time with us.

Sincerely,  
[Your Name]  
[Your Position]

Templates are a great way to ensure you don't miss any crucial elements, making the letter both comprehensive and considerate.

Final Thoughts

Writing a layoff letter is never easy, but with careful thought and consideration, it can be handled with dignity and respect. Remember, the goal is to communicate the necessary information clearly while also offering support and empathy. If you're ever unsure, tools like Spell can help you craft a letter that strikes the right balance, making a difficult task a bit more manageable.

Spencer Lanoue

Spencer Lanoue

Spencer has been working in product and growth for the last 10 years. He's currently Head of Growth at Sugardoh. Before that he worked at Bump Boxes, Buffer, UserTesting, and a few other early-stage startups.