Be clear and concise in describing the nature of the bad news, what caused it and what the impact will be on the employee reading the memo. Bad news travels fastest on the grapevine and the more information you can provide, the less time employees will spend on speculation.
From: Jim Karter
Subject: <subject of memo>
I regret to inform you that <describe bad news>.
<Description of effect.>
We appreciate your cooperation during these difficult times and will continue to keep you informed.