Termination due to downsizing

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Simply replace the unfilled areas such as "[]" and "[date]" with your information.

Dear [name],

I am sorry to inform you that your position at [name or organization] will be terminated as of [date]. We are downsizing our organization and we regret having to let you go.

We have been extremely happy with your performance over the past [#] [months/years] that you have worked for us. This termination does not reflect on your job record and performance here at [name or organization].

Given your track record with us and your skills and proven abilities, I know that you'll have no problem finding new employment.  If you wish I would be more than happy to write you a recommendation letter.