Crafting the Perfect “Job Elimination Due to Restructuring” Layoff Letter
Within today's constantly evolving business landscape, employers might come across the difficult decision of having to eliminate jobs due to some restructuring in the company.
If/when this happens, you should approach the process with empathy and clear communication to ensure a smoother transition for both the affected employees and the organization as a whole.
This short article will provide an in-depth view of the reasons for job elimination due to restructuring, essential components of a layoff letter, and best practices for delivering the letter.
Reasons for Job Elimination Due to Restructuring
There are several grounds for having to eliminate jobs due to restructuring, but the four main reasons we typically see are; financial challenges in the company, a merger or acquisition, a complete change in business strategy, and new technology and advancements (which is happening at a fast pace).
What are a few legal considerations to consider?
You should always discuss any change like this with your own legal and HR team, but some everyday legal actions you should consider include the following:
Understanding the WARN Act: The Worker Adjustment and Retraining Notification (WARN) Act require employers to provide a 60-day notice to employees affected by plant closures or mass layoffs in organizations with 100 or more employees.
Ensuring compliance with state-specific layoff regulations: You should familiarize yourself with any state-specific regulations regarding layoffs and adhere to these requirements. Again, your HR or legal team should help here.
Avoiding wrongful termination lawsuits: Employers must ensure that layoffs are not discriminatory and do not violate any employment contracts or labor agreements.
7 Steps for Writing a Layoff Letter Due to Restructuring
Step 1: Clear statement of the purpose of the letter
Open the letter by stating directly — but respectfully — that the employee’s position is being eliminated due to restructuring. Avoid vague or sugar-coated language, as it can cause confusion. Clarity sets the tone for honesty and respect.
Step 2: Explanation of the reasons behind the restructuring
Provide a concise but clear explanation of why the restructuring is occurring. This might include financial pressures, changes in strategy, or adoption of new technology. Keep it factual and professional, ensuring the employee understands the decision is business-driven, not personal.
Step 3: Specific information about the affected position
Name the employee’s title, department, and position being eliminated. This avoids ambiguity and shows the decision is about the role, not the individual. If multiple roles are being affected, note that as well to reduce the perception of being singled out.
Step 4: Layoff effective date and the notice period
Specify the last working day and whether the employee will continue working during a notice period, receive pay in lieu of notice, or be placed on “garden leave.” This ensures the employee knows exactly when employment ends and prevents disputes.
Step 5: Details of severance, benefits, and final pay
Outline the severance package, continuation of benefits (such as COBRA health coverage), and payment of unused vacation or PTO. If applicable, mention assistance like career coaching, outplacement services, or internal job opportunities. Transparency here reduces stress and builds trust.
Step 6: Next steps and HR support
Explain what the employee should expect next, such as a meeting with HR, instructions for returning company equipment, or information on filing for unemployment. Let them know whom they can contact with questions so they don’t feel abandoned.
Step 7: Closing with empathy and appreciation
End the letter by thanking the employee for their contributions and expressing genuine regret over the decision. Even a brief, heartfelt note of appreciation can soften the impact of bad news and help preserve goodwill.
Important Note: While writing a layoff letter is essential, it’s always best to have the initial layoff discussion in person or over some type of video chat. Sending a letter out of the blue without any initial context can often come across as insensitive & in-personal.
Layoff Letter Due to Restructuring Examples
Example Letter #1
Dear [Employee Name],
I hope this letter finds you well. I regret to inform you that your position as [Employee's Position] will be eliminated effective [Last Day of Employment] due to recent restructuring efforts within the company. This decision was not made lightly, and we understand the impact it will have on you and your family.
Please be assured that this decision does not reflect your performance or dedication to the company. The restructuring efforts are necessary to ensure the company's long-term stability and growth.
You will receive [Severance Package Details], including [Severance Pay, Insurance Continuation, etc.]. Additionally, we are committed to assisting you during this transition and will provide [Outplacement Services, Job Search Assistance, etc.] to support you in finding new employment opportunities.
A member from the Human Resources department will reach out to discuss further details and address any questions or concerns you may have.
We truly appreciate your contributions to the company and wish you the best in your future endeavors.
Sincerely,
[Your Name]
[Your Title]
Example Letter #2 (After discussion with the employee)
Dear [Employee Name],
As we discussed early today, it’s with deep regret that we must eliminate your position as [Employee's Position] with [Company Name], effective [Last Day of Employment]. This decision results from an ongoing company-wide restructuring aimed at streamlining our operations and maintaining our competitiveness in the market.
I want to emphasize that this decision is in no way a reflection of your performance or work ethic. We genuinely appreciate your dedication and contributions to the company during your tenure.
In recognition of your service, you will receive a severance package, which includes [Severance Package Details such as Severance Pay, Insurance Continuation, etc.]. Our Human Resources department will contact you shortly to discuss further details and answer any questions you may have.
We will also be offering [Outplacement Services, Job Search Assistance, etc.] to support you during this transition.
Thank you for your commitment and hard work during your time with [Company Name]. We wish you success in your future career endeavors.
Sincerely,
[Your Name]
[Your Title]
Frequently Asked Questions (FAQ)
What does it mean when a job is eliminated due to restructuring?
When a job is eliminated due to restructuring, the company has undergone changes in its organizational structure or operations, which have led to the removal of certain positions.
These changes can result from cost reduction measures, mergers, acquisitions, changes in business strategies, or other factors that necessitate the company to reorganize its workforce.
How can employers handle job elimination compassionately and fairly?
Employers should communicate the reasons for restructuring and job eliminations transparently, ensuring that employees understand the business rationale behind the decision.
Providing advanced notice (in-person preferred), offering severance packages, and assisting affected employees with outplacement services or job search support can help ease the transition and maintain a positive relationship between the employer and the employees.
What is the difference between a layoff and a job elimination?
A layoff is typically temporary and may leave room for recall when business conditions improve. A job elimination due to restructuring, however, is permanent because the position itself is being removed from the company’s structure.
How much notice should an employer give before eliminating a position?
Notice requirements vary depending on federal and state laws. Under the federal WARN Act, companies with 100+ employees generally must provide 60 days’ notice before mass layoffs or closures. Some states have their own “mini-WARN” laws with stricter requirements. For smaller companies not covered by WARN, best practice is to give as much notice as reasonably possible.
Are employees entitled to severance pay when their job is eliminated?
Severance pay is not legally required in most states unless it is outlined in an employment contract or company policy. However, many employers provide severance packages voluntarily to ease the transition, protect morale, and reduce the risk of litigation.
How can employees protect themselves if their job is eliminated?
Employees should review their severance agreement carefully, ask about continuation of health benefits (such as COBRA), and file for unemployment benefits promptly. Seeking outplacement or job search services can also accelerate reemployment.
How can managers communicate job eliminations to remaining staff?
It’s important to communicate clearly with remaining employees to avoid fear and confusion. Acknowledge the difficulty of the decision, explain the business rationale, and reassure staff about the company’s future direction. Failing to communicate openly can damage morale and lead to further turnover.
Position Elimination Laws
When eliminating a position, employers must follow both federal and state laws to ensure compliance and avoid liability:
WARN Act (Federal): Requires 60 days’ advance notice in cases of mass layoffs or plant closures involving 100+ employees. Failure to comply can result in fines and back pay obligations.
State “Mini-WARN” Acts: Several states (like California, New York, and Illinois) have stricter requirements than the federal law. Employers should confirm their obligations under state law.
Anti-Discrimination Laws: Job eliminations must not disproportionately affect employees based on protected categories such as age, gender, race, disability, or other legally protected statuses.
Employment Contracts & Union Agreements: If an employee has a contract or is part of a union, additional layoff procedures and protections may apply.
Final Paycheck Laws: Many states require final wages (and accrued vacation, if applicable) to be paid promptly after termination — sometimes on the last day worked.
Always consult with HR and legal counsel before executing layoffs to ensure compliance and minimize legal risks.
“The only thing worse than training employees and losing them, is not training them and keeping them.”
Wrapping Up | Job Eliminated Due to Restructuring
Well-written layoff letters are an essential component of the job elimination process. Approaching this task with empathy, compassion, and clear communication will facilitate a smoother transition for affected employees and your company.
By following best practices, offering additional support for affected employees, and maintaining morale among remaining employees, employers can minimize the negative impact of restructuring on the workforce and the company.
The ability to navigate challenging times with professionalism and transparency will ultimately contribute to a more vital, resilient organization in the long run. So, if you don’t get it right the first time, don’t sweat it.
We hope this helps, and best of luck with your business restructuring!
Tags: Job eliminated due to restructuring, job eliminated due to restructuring letter, position eliminated due to restructuring, layoff due to restructuring, job eliminated due to restructuring, position elimination laws
Author: Reid Alexander
Disclaimer: This content is for informational purposes only & not intended as professional legal or HR advice. Consult with qualified professionals for advice tailored to your specific situation. The author & publisher disclaim any liability for errors, omissions, or actions taken based on this content.