Sample Memo for Cost Cutting Measures

Cost cutting is something many of us have to resort to if we want to stay afloat in these days of inflation. It is not just individuals that resort to cost cutting but organizations as well. In fact, organizations need to do this more as they need to keep a balance between what they earn and how much they spend. At the organizational level, it is not only important for members of the upper management to indulge in cost cutting activities. All employees have to follow suit if one really wants to make a difference.

Letting your employees know that cost cutting measures need to be undertaken is important. Writing a memo to them will let you articulate the importance of this issue, and provide suggestions on how to do it. Your memo should be detailed and straightforward. Begin by explaining why the cost cutting policy is being introduced, and provide suggestions on how to go about actually cutting costs. Ask for their cooperation in the nicest way possible, by making sure that they understand your predicament.

Your memo can be written to impress – instead of cost cutting, you can relate the matter as “savings initiatives”. But whichever way you put it, make sure that your employees understand the issue and are willing to help you. Here is a sample memo for your reference:


Sample Memo for Cost Cutting Measures


October 6, 2016


From: Steve Jones

To: Core Tech Employees

Subject: Reducing Costs

In response to the realities of a deteriorating economy, we would like to take some steps to realign the way Core Tech does business, and how it operates on a daily basis.

In view of the fact that the company’s business has declined by a staggering 25% in the last 3 months, we encourage you to adopt the following cost cutting measures:

Office Supplies: Please be informed that all office supplies, including papers and pens are to be used for office work purposes only.

Meals: Company expenditure for meals has been limited to an absolute minimum. If you are obtaining your meals from the in-office kitchen, please make sure that it remains within the budget that has been provided to you.

Travel: We request you to arrange for your living quarters with family members or friends that you may have in the area where you have been sent by the office. If you do not have either, please opt to choose a less expensive hotel or inn.

Utilities: We are in the process of installing an efficient solution to lower our energy bills. Until then, we request all employees to keep all unneeded lights and electric office equipment off or at minimum usage.

We would appreciate your cooperation in devising innovative techniques in an effort to save company money, and thank you for your understanding.



Olivia Welsh
Core Tech
1837 3rd Street
Huron, SD 19374

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