To： Francis Xu， General Office

From： Marc Morgan， Director of Personnel

Date： June 5， 199-

Subject： Terminating Engagement

Mr. Xu， you may already know that the Directors of the company will soon have finished the reorganization of the business and that this will result in a decrease in staff. I am very sorry to inform you that your position is one that will shortly become redundant， and that you services will not continue after the end of this month.

We have no cause of complaint against you， on the contrary， we are quite satisfied with your services during the three years. The reduction of staff is entirely due to business doldrums. You will of course be entitled to a redundancy payment. In your case you will be given one month’s salary for every year of service with the company. Besides， we shall be pleased to provide any prospective employer with a testimonial of your character and ability.

Please contact me (ext. 2981) if you have any questions.