Memorandum

Date: July 28,2021

To: All Employees

Cc: All Directors

All Managers

Subject: Reduction in festival bonus due to the budget constraints caused by Covid-19.

Dear Seniors and Colleagues,

According to the recent organizational annual report, we are facing severe budget constraints
which are caused by Covid-19. Hence, we do not have much of a choice left other than reducing
the festival bonus for this particular year. This memorandum is addressed to inform our beloved
employees about reducing the festival bonus due to the budget constraints.

Report suggests that the profit margin of our organization has declined by around 40% since the
Covid-19 phrase has started. Moreover, according to our income statement, the operational
expenses have also increased by almost 20-25% due to the pandemic. This resulted in severe
budget constraints. Thus, we already are facing difficulties bearing all the expenses with the
remaining amount of profit. However, there’s no certainty that there will be improvements in our
profit margin in the upcoming year. Hence, we are thinking of reducing the festival bonus for
this year by 50% and adding this amount to our future fund so that we can use this in the next year to
provide the salaries of our employees even if the profit margin doesn’t cover it. That would help us to run
the organization smoothly.

We would like to thank all of you, for your valuable time and service that you provide to us. Therefore,
we hope that you would understand the situation and cooperate with us throughout this tough time.

[N.B.: Attached herewith is the signature roster. Kindly acknowledge the memo and sign in your
delegated place.]