ABC Industries, Inc.

To: All Home Office Employees

From: Kevin Garcia CEO/ President

Date: February 22

84538914730700Subject: Merger with XYZ INC

Due to the economic and industry forces beyond our control and the company’s declining performance ABC Industries, Inc. has been forced to make difficult decisions. Today I announce that ABC Industries Inc. and XYZ Industries Inc. have reached an agreement to merge, creating a global industry force. The recently completed merger with XYZ, has made our company to align our new business lines to meet our new objectives. The actions being taken are to propel the organization to adopt to the market with the new products as well as the new business processes. Unfortunately, this actions means that restructuring within the company is necessary. The ABC Inc. has agreed to allow 80% of our workforce to continue working after the performance review to assess the employee value has been conducted.

Due to the merger and the restructuring, we found that the organization will reduce its workforce to ensure the financial stability of the organization and to meet the agreement terms with XYZ Inc. The reduction on force will be based on performance reviews and ratings within every job category. We will provide details to employees who will not succeed in the performance review and we will meet with these individual employees after the performance review process.

We want you to know that the merger and the subsequent layoffs, is not a statement about your work for ABC Inc. You have been dedicated employees and you have all contributed to the company’s success in the past years. If any one wishes the organization to speak on their behalf to potential employers, please let the organization know. The organization will assist every employee during this transition to ensure the effectiveness of every individual in their different capacities.

Regards

President/CEO ABC Inc.