Subject: Notice of Demotion for [Employee's Name] Dear [Employee's Name], I am writing to officially notify you of our decision to implement a demotion in your current position at [Company Name]. This letter serves as a formal notice regarding your change in employment status and the reasons behind this decision as discussed during the recent performance evaluation meeting. Effective [date], you will be demoted from your current position as [current job title] to the position of [new job title]. This demotion entails various changes in your duties, responsibilities, and compensation package. Reasons for Demotion: The decision to demote you is not one that we have taken lightly, but is based on the following valid reasons: 1. Performance Concerns: Our evaluation process has revealed consistent underperformance in meeting the job expectations as outlined in your role description, despite multiple attempts to provide guidance and support for improvement. This demotion provides an opportunity to realign your responsibilities to better match your current skillet. 2. Lack of Skills/Knowledge: The demotion is due to inadequate skills or knowledge necessary to perform the duties expected at your current level. By accepting the new position, you will be able to engage in focused training and development, ensuring you are equipped to excel in your revised role. 3. Misconduct or Policy Violations: If the demotion is a result of misconduct or policy violations, specify the violations committed and explain how such behavior is not aligned with our company's values and code of conduct. Highlight any previous warnings or disciplinary actions taken regarding the specific misconduct. 4. Economic Restructuring: In cases where the demotion is due to restructuring within the organization, emphasize the economic factors that necessitated this decision, such as financial challenges or changes in the market conditions. Responsibilities and Compensation: As [new job title], your duties and responsibilities will be revised to align with your new position. Please refer to the enclosed job description to get a comprehensive understanding of your new role. Your new job will entail [specific duties and responsibilities]. Regarding your compensation, there will be an adjustment reflecting the change in your job level. Kindly refer to the attached compensation schedule for details on your revised salary, benefits, and any other changes that may apply. [If there is a probationary period or timeline for possible promotion, mention it here.] Next Steps and Support: We understand that a demotion can be a challenging transition. Our aim is to support you during this time and help you regain your footing in your new role. The company will provide any necessary resources, such as additional training or mentoring, to facilitate your successful integration into your new position. We encourage you to discuss any concerns or questions you may have with your immediate supervisor or the HR department. Please acknowledge your understanding and acceptance of this demotion by signing and returning a copy of this letter to the HR Department by [deadline, usually 5 business days from the date of this letter]. If you have any questions or require further clarification, please do not hesitate to reach out. We appreciate your contribution to [Company Name] so far and believe that this demotion represents an opportunity for growth and improvement. We hope that you are able to embrace this change and work towards developing the necessary skills and performance level expected for future advancement opportunities. Thank you for your attention to this matter. Best regards, [Your Name] [Your Position] [Company Name] Enclosures: — Job Description for [new job title— - Compensation Schedule.