[Your letterhead, if desired; if not, your return address]
[Date of letter-month, day, and year]
[Recipient's first and last names]
[Street or P.O. box address]
[City, State ZIP code]
Dear [recipient's name]:
Thank you for providing office design services to our company over the past five years. Your guidance and expertise have been invaluable as our company has moved and changed during this time. We regret to inform you, however, that we will be canceling our agreement with you at the end of this calendar year. We needed to make this decision as a result of major budget cuts taking place throughout our company.
We look forward to working with you through the end of the year, and again, thank you most sincerely for the excellent services that you have provided. Please let us know if you have any questions regarding this cancellation.
[Sender's first and last names]