Asset management by consolidating older production

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Reference no: EM1377667

During the last 3-years, firm profits have declined and inventories have raised to the point that management has decided to consolidate its producing operations into one plant. Although some of the employees from the closed plant in Normal, IL will be transferred to the remaining plant in Moline, many of the workers will lose their jobs.

The VP has asked you to prepare a one page letter for him to sign announcing the closure to employees of the Normal plant. The following information needs to be communicated in the letter:
* Plant operations will be phased out over the next six months.
* Many, but not all, employees will be given the opportunity to transfer to the Moline plant. Details will be provided over the next few months on an individual basis.
* Employees who are not transferred to the Moline plant will receive a week's severance pay for every year of service to the company.
* The reason given to the media for the closure is to improve asset management by consolidating older production facilities.

 

Reference no: EM1377667

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