Dear :
As we discussed last week, the recent changes in the market for [products] has forced the company to close its plant in [location] and reduce its staff. As a consequence, your position has been eliminated.
To confirm the agreement we reached in our conversation last week, you will terminate your employment on [date] and receive severance pay equal to three months' salary. The attached document provides details with regard to severance pay, pension plan, and optional continuation of medical and insurance benefits. If you have questions about these or other matters, please contact [name], [position], at [phone number].
Regards,
[name]
[title]
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