We regret to let you know that due to the downsizing that’s happening in our company, we must terminate your employment with us. This is effective on [date].
Please don’t think that this termination have anything to do with your performance. You did well with us. We couldn’t have been happier with you in all [time] that you have been here.
You’re a very capable person [name]. We are confident that you’ll find yourself employed again in no time. If you want it, I could write you a recommendation letter. Just let me know.