Management 306

Layoffs (Example 3)

Financial Software Systems

To: Employees of Financial Software Systems
From: Lewis Renwick, CEO
Date: November 6, 2014
Subject: Corporate Realignment of Goals, Objectives, and Downsizing

I wanted you to hear directly from me about our plans at Financial Software Systems. In recent days, rumors have been circulating throughout the organization and I would like to clarify some things. I know that the hard work and dedication of every employee throughout the entire organization is the key to Financial Software Systems success. I have had the pleasure to work alongside some of the most extraordinary individuals, and our focus has always been to provide the unprecedented superior financial software systems for large companies.

Since I became CEO, I've been working with Financial Software Systems' senior management team to create a plan to position the company for future growth, maintaining our position as the industry's leader in quality financial software systems—all while safeguarding our traditions and legacy. The company is restructuring our goals and objectives to give ourselves the opportunity to compete in our core business; we will transition our focus from financial software systems for large to small companies. Financial Software Systems' prized gem, AccountSoft, has suffered declining sales over the past two years, and it no longer fits with the new goals and objectives of the company. As a result, the AccountSoft division of our company will be acquired by Accounting Support Services, Inc. to reduce costs and reallocate resources to our high-growth financial software systems that accomplish our goals.

Here at Financial Software Systems, we are currently in a position of unparalleled strength. To maintain this position, we are constantly reviewing our business to make sure we're operating as efficiently and effectively as possible. During this acquisition, we did our best to minimize staff reductions. However, and it pains me to say this, positions will be eliminated. As part of this effort, the 150 employees within the sales and marketing departments of AccountSoft will be laid off. Due to a stipulation in our acquisition agreement, the software developers of AccountSoft will be offered the same position within Accounting Support Services, Inc.; the organizational restructuring will take effect December 1, 2014.

To minimize the stress to our valued employees, we will be offering a free "Resume and Cover Letter Revising" workshop on November 20, 2014 for all individuals who wish to attend. A severance package of $2,000 per employee will be offered to financially relieve some of the burden caused upon each individual. Effective November 7, 2014, Employees in the sales and marketing departments of AccountSoft will remain on payroll until after the transition, but are no longer obligated to be present at the facility. We treat all of our employees with dignity and respect, and will provide the resources previously discussed to help them through this transition. Despite the challenges we face, we need to focus on the tasks at hand, maintain the sense of excellence that has defined our company for more than 50 years, and move forward knowing that, regardless of any organizational changes, we will remain the industry's gold standard.