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NegativeMessage Memorandum

ABCIndustries, Inc.

INTERNALMEMORANDUM

March 21, 2017

TO: All employees of ABC Industries, Inc.

FROM: The CEO/President

SUBJECT: ABC Industries, Inc. to merger with XYZ Industries, Inc.

Ourcompany is forced to enter into a merger with our main competitor inthe market, XYZ Industries, Inc. This decision was taken because theperformance of our firm has been declining and thus affecting ourrevenues. This is the only solution to save our enterprise from apossible shutdown that can discontinue our operations automatically.The current situation is worrying since we are unable make enoughprofits to sustain our operations and most of the customers haveshifted to the rival organizations.

Themerger between ABC and XYZ Industries will form one large companywith international dealings. The agreement states that 80% of ourcurrent employees will be retained, but performance reviews must betaken to ascertain the value of each employee. Each and every workershould perform the duties to the best of his knowledge to improve theperformance and achieve high values that will increase the chances ofbeing retained. New policies will be implemented to avoid thechallenges seen in our firm currently. These changes will take placesoon, but we will give a one month notice to prepare you for themerger.

Itis clear that 20% of our staff members have to be laid off. Theprocess of doing so will be transparent and no member will leavethrough injustice ways. This is why we proposed performanceevaluation to be conducted and those who score low will have to bearwith us and leave the company. I apologize for any inconveniences tobe caused by this proposed plan. In the long-run, the best performerswill receive increased pay packages for their services. In case ofinquiries concerning the contents of this memo, kindly feel free tovisit my office or write a short note and drop it at the secretary’soffice and wait for my response within a day.