Letter Announcing Office Closing due to Financial Problem

When the owner of the company decides to close the office due to financial problems, he should inform all the members of the staff. Since closing an office is something very serious¸ the letter is written in a serious and regretting tone. Adding the subject in the letter is very useful for the reader. The letter should appreciate the loyal employees who have been very sincere with the company even in the bad times. It should also express the concerns for those employees.

Whatever actions you are going to take including the closing of the office should be explained in the letter. All the bad news can ruin the letter so it is better to combine the bad news with the good news and keep the tone of the letter soft.

Also, tell the reader that you really understand their problems which they will have to face after the closing of the office. Make them believe that it is better to close the office rather than keep it remain open and cut down the salaries of the workers. If you have planned any strategy for your business or to reopen the office after a few days or months, do mention them in the letter.

Moreover, if there is any plan to call a meeting before opening the office again, you can write the date of the meeting in the letter. End the letter with a positive tone and wish all the employees the best of luck for the future.


We regret to inform you that our office on [street name] is being closed due to financial problems. As all of you understand the past year has been very difficult for business, and we could hardly generate enough revenue to pay for the cost of running the office let alone make any profit. We have tried to delay this decision for as long as possible, but it seems that the time has come to take this bitter pill.

We want to thank all of you for your tireless efforts and unwavering loyalty in this difficult time. We understand the problems and stress this decision would cause you on a personal level, but we are afraid that it is unavoidable now. This pandemic has affected all businesses, but the travel industry has suffered the most due to lockdowns and the uncertainty surrounding traveling.

We promise you that whenever things go back to normal and we are rehiring, we would hire our diligent old workers on a priority basis. For now, all members of the staff would be given three months’ pay in advance as per the contract and recommendations for future jobs. [Date] would be the last working day of this office. Please clear your dues and take your recommendation letters (if required) before this date. In case of any query please feel free to contact Mr. [name], he can be reached at [phone number] or [email address].

 Wishing you all the best in your future endeavors.


We are writing to give you the bad news that due to financial problems we will be closing the office located on [address]. We understand how disappointing and frustrating this news would be to all of you but sadly this is unavoidable.

We had started this branch office of our NGO because we wanted a dedicated team to focus solely on helping uneducated poor women and providing them with any assistance, they might require to start their own business and become financially independent. It was not an easy task, and your efforts are fully recognized and appreciated.

The proof of your hard work is in the form of the one hundred plus women who are now leading their own small businesses and leading a much better life than when they reached out to you. The way you promoted your branch and worked hard for generating funds is known and appreciated by all.

You had a good run but due to COVID, fund-generating activities such as exhibitions and concerts have all been prohibited for quite some time now. Currently, the funds are so low that even the office running costs cannot be covered. We have no option but to shut down the office. No matter how disappointing and upsetting this present condition is, please do not lose hope. Not all is lost. Pride yourself on the good you have done and the lives you have changed for the better.

We deeply regret the stress and inconvenience this would cause all of you, but we are sure that you would understand our dilemma. Looking forward to better days and wishing you all the best for all your future endeavors.   


Dear [Recipient’s Name],

Due to the financial problems and rising cost, we are unable to retain our office services. All the responsibilities of this office will be transferred to the main office. We will also transfer some of our employees for smooth processing of work. I regret to inform you that you will not be able to be with us anymore. We will give you a separate pay package along with good referrals for other jobs. Wish you all the best for the rest of your life.

[Youe Name]


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