Dear ...
I am writing this letter in response to the recent discussions that have taken place regarding your intent to relocate to __(Name of place)__, and your subsequent request for a transfer of employment to our __(Name of other Branch)__. As you know, we were fortunate enough to able to offer __(Name)__ a position at that branch, commencing __(date)__. Regrettably, however, we do not have a position available for you in that same branch at this time.
As a result, we are left with no alternative but to terminate your employment with __(Name of Organization)__ effective __(date)__. This is most unfortunate for us, as we know your capabilities, __(Name)__, and have valued you as an employee over the years. It is regrettable that we do not currently have a place for you in the __(Name of other Branch)__, however, we will keep you in mind for any opportunities that may become available at that branch matching your skill set. If all goes as planned, we are looking forward to an expansion of that branch in the near future.
In the meantime, thank you for your past service to __(Name of organization)__. We wish you all the best with your move and ask you to feel free to use us as a reference with any other employment opportunities that may come your way.
Sincerely,