Memo for Weymouth Steel Corporation

Memo to Harrison:

Dear Mr. Harrison:

This letter is being written to address the need for immediate cost cutting measures at Weymouth Steel Corporation. It has been made clear that the corporation has in the past done all that was possible to reduce costs, but the time has come for the need for 2000 staff member reduction. Nearly 1000 of these staff reductions will come through normal attrition, early retirement, and transfers. We must address the other 1000 positions, both salaried and hourly that must be cut. I think we all learned how bad things can go after we let go 10,000 hourly employee utilizing the traditional method of communication. In addition there is good news for those not being laid off there will be salary increases as well as improved benefits. And it is important to convey both messages in a public form as not to distort the message and having the workforce focus on the layoffs. The news must be related quickly and thoroughly to all staff that are to be affected.

That is why it is important for the Chairman of the Board, Carl Weymouth communicate the news. I propose that our primary audience, the employees need to be told of the news in a town hall meeting. Mr. Weymouth will advise the salaried work force of the current economic position of the company and how we are going to survive the industry down turn and come out of it as a much stronger company. As well as communicating the good news of increased pay and benefits and explain the reason for such increases. Department heads should meet with all salaried employees first as this lay-off will have the greatest effect on them. After the salaried staff has been informed then the hourly staff must be told. This should happen within a relatively short period of time.

A letter explaining the lay-offs and the reasoning behind them should include:

• Statistical data pertaining to a 25% reduction in business

• Lay-off structure

• Benefit information

• Contact person for questions

This...