Employment Memo: Addressing Funding Issues & Layoff Impacts

This assignment presents a memorandum from a CEO to employees addressing the impact of rescinded conditional funding on the organization. The memo conveys the difficult decision to lay off 5 out of 20 employees due to budget constraints. The selection process will be based on a voting system among senior management, ensuring fairness and discretion. The company commits to supporting affected employees by offering compensation, a three-month job search period with pay, and relocation cost coverage for those who relocated for the job. The memo also addresses why management cannot accept pay cuts instead of layoffs, citing existing low pay due to funding issues. A meeting will be held to further discuss the situation, and employee suggestions are welcomed. The memo aims to inform employees promptly to minimize inconvenience, reflecting the organization's duty of care. The document also contains references about organizational closedown and the process of deconstruction and creativity.

Running head: MEMORANDUM
MEMORANDUM
Name of the Student
Name of the University
Author Note

1MEMORANDUM
Executive Summary
The purpose of the given memo is to inform the different employees with respect to the
conditional funding which was supposed to be received by the organization but did not take
place. As a consequence of the given scenario, there have been several impacts of the company
and one such impact which is the impact on the employment shall be discussed effectively. The
memo delivers the message that the CEO wants to give out to the different employees and the
assurance that they will be provided with complete support.

2MEMORANDUM
MEMORANDUM
TO: All Employees
CC: Name
FROM: CEO
DATE: June 18, 2018
SUBJECT: EMPLOYMENT
This is to bring into your notice that there have been certain issues with respect to the
conditional funding which was expected to be received by the organization for the purpose of
investment. Unfortunately, the lender has rescinded approximately 25% of the funds and this has
had a huge impact on the organization’s future. For this purpose, the plans and the budgets which
had been formed for the wellbeing of the organization have to be cut down effectively and this
may have an impact on the tenure and appointment of the employees in the long run.
As an impact of this, I regret to inform that the organization will not be able to continue
in the same manner and will thus be required to lay off 5 employees out of our team of 20
employees. The terms on the basis of which these chosen group of employees will be laid off has
not been decided as of now but I can assure you all that it will be purely based on management
and not on the seniority of the employees or their performance.
In order to device the manner in which the 5 employees will be let go will be based on a
voting system which will be held amongst the different members of the senior management. The
senior management will be responsible for the employment for the 5 employees who will be laid
off. The employment and the layoff decision will be based purely on the discretion of the
management. In order to ensure that the given system is fair, a voting system will be conducted
and the members receiving the minimum votes will have to leave.
With special respect to the employees who have been asked to relocate to the given city
for the purpose of the job employment, the company has agreed to compensate and pay the
employees a certain percentage of the compensation package which will then help the employees

3MEMORANDUM
to ensure that they are being able to successfully to move on. The company understands that it
has an obligation towards the selected group of employees and thus for this purpose, they will be
allowing the employees a time frame of 3 months and for this time period, they will be allowed
to look out for better opportunities and will be paid their pay in a just manner as well.
Furthermore, the company shall also agree to pay the relocation cost of the employees as a token
of apology and in order to ensure that the employees do not face any problem thereby.
Many of the employees must be wondering why the employees need to be laid off and
why cannot the management accept a pay cut for the purpose of the low budget being formulated
due to the cut in the funding’s received. The management will not be able to retain all the
employees in place because that way they will be incurring additional costs of their management
and pays as well. As far as the pay cut of the senior management is concerned, the senior
management is already receiving a low pay as a result of this funding which was not permitted.
Hence, even after the pay cut was done, there were certain restrictions with respect to the budget
and therefore, the laying off of the employees becomes compulsory.
Furthermore, as a means to compensate for the loss, the management will be keeping a
spate meeting which will then help the different members to understand the situation of the
organization and the manner in which the cut in the funding has affected them severely. Had
there been any other alternative, the management would have surely opted for the same. The
management felt that it is the duty of the organization as well as the CEO to see to it that the
employees are well informed long before the given procedure will be carried out so that any
inconvenience caused to the employees could be minimized. The date and venue for the meeting
will be notified in a few days’ time. The management appreciates coordination during this time
and any queries and questions on behalf of the employees will be completely addressed. Those
employees who have a better suggestion in place can contact the CEO via mail.
Thank you
Best,
CEO

4MEMORANDUM
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