[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]:
We are writing to notify you that we will be terminating your contract with our company on April 30, 2010. We regret that we must make this decision, but as a result of decreasing profits and business, we have no other choice but to reduce our staffing budget.
Please contact us as soon as possible if you have questions regarding this contract termination. Also please work with your manager to develop a plan for work that you will complete before April 30. Thank you for providing our company with your computer programming services over the past year.
[Sender's first and last names]