[Your Name] [Your Address] [City, State, ZIP Code] [Email Address] [Phone Number] [Date] [Employee's Name] [Employee's Address] [City, State, ZIP Code] Subject: Notice of Demotion Dear [Employee's Name], I hope this letter finds you well. It is with regret that I must inform you, as per our recent discussions and performance evaluations, that we have decided to proceed with a demotion from your current position at [Company Name]. This decision has been made after careful consideration of your work performance and overall contribution to the company. The demotion will take effect on [Effective Date]. As a result, your job title will change from [Current Job Title] to [New Job Title]. With this demotion, there will be a corresponding reduction in your responsibilities, tasks, and associated salary. It is important to note that this decision is not intended to be punitive but rather a means to address some performance issues that have come to our attention. Despite previous discussions and warnings, we have noticed a consistent decline in your performance, which has negatively impacted the team and overall business operations. By accepting this demotion, we hope that you will be given the opportunity to focus on improving your skills and competencies in order to eventually regain your previous position or explore other growth opportunities within the company. We believe in your potential and encourage you to view this demotion as a chance for growth and development. Additionally, I want to assure you that your pay rate will be adjusted to reflect the change in your job responsibilities. Enclosed with this letter, you will find an updated employment contract outlining the new terms and conditions of your employment, including the revised salary and benefits. Moving forward, it is essential that we work together to create a performance improvement plan. We will schedule regular meetings to discuss your progress, set achievable goals, and provide training and resources to support your development. It is our sincere hope that you will embrace this opportunity and commit to enhancing your performance within the new role. If you are willing to accept this demotion, please sign and return a copy of this letter, as well as the enclosed employment contract by [Deadline Date]. Your cooperation is greatly appreciated. Should you have any questions or require further clarification, please do not hesitate to contact me. I am available to meet with you at any time. Thank you for your understanding and cooperation in this matter. Sincerely, [Your Name] [Your Job Title] [Company Name] Enclosure: Employment Contract