Terminate employees due to shortage of funds example letter


  1. This letter is written after discussing with the employee in person. Write in brief and do not elongate the letter. Be clear to impart the decision of dismissal. Clearly mention the actual reason for dismissal. Use a language that conveys a positive message as much as possible.
  2. Review the current situation.
  3. Be clear in conveying the message of termination. Mention that you are sorry about it but do not overdo it.
  4. Mention the details of severance benefits if any.
  5. End with a positive note.


[Senders Name]
[Address line]
[State, ZIP Code]

[Letter Date]

[Recipients Name]
[Address line]
[State, ZIP Code]

[Subject: Normally bold, summarizes the intention of the letter] -Optional-

Dear [Recipients Name],

You are aware that Beor Press' publication of Denver City's music magazine is funded by a yearly grant from the Institute of Arts and Music. Because of the recent federal cutbacks of sponsored art and music programs, our publication has been profoundly affected. Our annual grant has been stopped and we no choice but to also prevent the publication of City Music. The board has tried and searched for other available funds, but our efforts have been in vain. Given this, March's issue is going to be our last one.

And so we also have to terminate the employment of all the magazine staff including the writers and editors, both part- and full-time. Please do your best to oversee the on-time publication of March's issue, with February 28 as your last day of work. We will have a short meeting on February 15 to discuss unemployment and insurance matters.

Those who invested their time in this project, myself included, know that City Music means more than just a job; it is our realized dream. Admittedly, I am sad to tell you this news. Kindly inform me if I can help you in seeking new employment.


[Senders Name]
[Senders Title] -Optional-

[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -

Terminate employees due to shortage of funds example letter.

Further things to consider when writing cancellation letters to employees

Further things to consider when writing cancellation letters to employees

Cancellation Letters

Cancellation letters are letters you write to a service provider, company or institution, informing them that you are dissatisfied with their product, service, or membership and that you wish to discontinue it. Cancellation letters can be written for several things such as canceling an insurance policy, a cable service, rental agreement, a magazine subscription, a bank account, order, credit, etc. The reason why people issue cancellation letters is mainly due to unsatisfactory or poor performance, not meeting the expectations, and at times unavailability of funds.

Cancellation letters are written in a clear and a concise manner. Go straight to the point and suggest actions you expect to be taken. Clearly state what you are canceling and explain you reason for it. Where necessary, include the details of what you are canceling, for example, account details. Mention that you wish to receive confirmation that the cancellation was effected. State clear steps that you would take if cancellation is not put into effect within the specified notice period. End the letter on a positive tone and request the reader to acknowledge receipt. Send the letter well in advance to give enough notice to the reader.

Letters to Employees

Letters to employees are letters written to individuals who work for an organization or for another person. If you are an employer or manage a group of employees, the chances are that you will have to write to the employees at some point. It could be an introduction letter to introduce a new product or service to salespersons, a rejection letter to turn down an employee's request for a promotion, or a thank-you letter to thank an employee for his/her hard work. You could also write a termination letter to fire an employee for his/her poor performance. Whatever the reason for your writing, the letter must be formal and professional.

All letters to employees must be addressed with the proper names of the recipients. But if your message is intended for all employees in general, you can address your letter as "To all employees". State the purpose of the letter. Convey your message briefly but clearly, highlighting all the important details. If the issue that you are writing about requires further explanation, make sure to offer your explanation in a way that the recipient can easily understand. Wrap it up with a positive note or a call to action.

These articles may interest you

These articles may interest you