APPENDIX B - SAMPLE: Memo to Unaffected Employees

As you know our industry has experienced recessionary times during recent months. We have tried to keep you apprised of how this is impacting the state of our business during recent employee bulletins and staff meetings. Unfortunately, the recession is directly impacting our company. We have tried to be honest in our communications, and to keep you apprised of the fact that our business is in a "down" phase.

We have in the past experienced similar downturns in business volume, and have successfully "ridden" those times out to move forward to subsequent growth and development. This has been accomplished through careful management of our resources and expenses, and the concerted effort of everyone associated with our company.

Successful companies must periodically step back and evaluate all aspects of their business to determine how to be best positioned for future growth and also effectively survive tough times. The media regularly reports on strategies taken by well-known companies throughout the country, which are aimed at making it through periods of reduced business volume. Several months or a year later, we will again hear about these same companies and their "upswing" in business, demonstrating that business is cyclical.

During recent months, we have been focusing on expense reduction, and in many areas, much progress has been made. We have also been carefully evaluating staffing, operations and sales plans to determine strategies necessary to ensure that we successfully make it through our current down cycle.

This evaluation has indicated that we have no choice but to adjust the size of our workforce to a level that is consistent with our current sales opportunities. Accordingly, we have determined that _____ positions must be eliminated. All employees impacted by this reduction in force have already been notified.

Affected employees are being provided assistance through this transitional period, including outplacement services and reemployment services by the local One Stop Center.

We have made this decision after much thought, and we regret it was necessary. However, I know that you understand that protecting the financial well being of the company is in the long run paramount to the interest of all employees.

I thank you for your efforts during recent months, and look forward to our return to the "up" side of the cycle through the efforts of everyone in the company.