from what I see here, nothing is wrong. All redwoods lose their interior needles in the late summer. I have several redwoods around my house and they have this "look"  I can't see the top, so am not sure what to say about that. I do know the cold spell we had last winter damaged or killed a number of redwoods, so your tree may be feeling/showing the stress of a dry spring, hot summer and the previous cold spell. As long as the ends of the limbs are green/healthy looking, you're in good shape. If the top is dear, then you have another issue. If you want to take a pic of the top and send it, I'll look and maybe say something else. But from what you show me, I would not have any woories

Thanks for your help and your reply. I'm attaching a picture of the top. 

Thanks

redwoods are famous for having oddball forms....including multiple tops. Often the top foot or so dies and another meristem takes over as the leader. The current leader is dead, allright. But I still don't think you have any issues. This scenario has also happened to my  trees. This doesn't do much for you, but I will send this to out forest health specialist and he can weigh=in and give you an additional opinion. So let's talk to a REAL expert.  :)

Thank you for your answer and reassurance. I feel much better. I was pretty concern we were about to see this tree die. I'll welcome any additional opinions but hoping what you said is right. Thanks!

Thank you for your answer and reassurance. I feel much better. I was pretty concern we were about to see this tree die. I'll welcome any additional opinions but hoping what you said is right. Thanks!