Going Out of Business Letter to Employees

By | September 21, 2016

Employees are probably the first people who are affected in the event of a business closure. They are the ones who will lose their jobs and of course, their means of earning. A company boss / employer faces quite a problem (not to forget the guilt) of letting people go who have families that depend on the income generated from their work.

However, in the event of a business closure, there is nothing that anyone can do. You have to close the business down, and you have to let the employees go. So what’s the first step? The first step is writing a letter to all the employees to inform them that your company is going out of business. The sensitive nature of the matter requires that you write a letter of this sort with tact. Breaking news like this isn’t going to be easy, and you will be subjected to a lot of questions from unhappy employees. Be prepared for it – write the letter in a way that will minimize questioning.

If there is anything that you are offering to your employees, such as extra salaries to tide them over until they find a job, do mention it in the letter. But firstly, chart out why you are closing down, by providing as many details as possible.


Going Out of Business Letter to Employees


Thomas Julian, CEO
Tel: (000) 142-8544
Email: Thomas @ email . com

September 21, 2016

Team Timberland
600 Main Road
Old Bridge, NJ 59012


Dear Team Members:

It is with immense regret and sadness that I announce the closure of Timberland, a company that I have worked hard to bring where it is now. Please note that we will not be operational from January, 2017.

Over the years, Timberland has enjoyed considerable profits and a consistently positive image in the garment industry. And we have shared both profits and glory with our company’s prime assets – our employees. Unfortunately, the last 3 years have been tough for the garment industry as a whole, with exorbitant government levied taxes, resulting in the industry moving out to other countries. At this point in time, we are barely at the breakeven point and will not be able to sustain for much longer.

As proof of our gratefulness to the people who made this company a success, I would like to offer all of you a 13th and 14th salary at the end of the year, to tide you over until you all find good jobs. Each one of you has been a valuable contributor to Timberland and I would like to thank all of you for your support and hard work.

For any further queries, please contact Ms. Amelia James in the HR department, who will also provide you with details on any accumulated benefits or / and outstanding payments from the company. I wish you all best of luck for your future endeavors.



Thomas Julian