Layoff
An employer-initiated termination of roles usually driven by business restructuring cost reduction or changed priorities.
Plain English
The company removes positions for organizational reasons rather than an individual resignation.
In context
Layoffs require careful legal operational and human handling including clear communication final compensation access changes and support for affected people.
Example
“Leadership announced a layoff after deciding to close two business lines.”
When you'll hear this
- company restructuring
- workforce planning
- employee communication
Common misunderstanding
A layoff is not the same as every performance-based termination and terminology can have legal consequences.
Also known as
workforce reductionredundancy
Commonly used by
Related terms
Updated: 2026-08-27
