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Layoff: meaning, definitions and examples

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layoff

[ˈleɪɒf ]

Definitions

Context #1 | Noun

workplace

A layoff is the act of dismissing employees because a company has financial difficulties or is restructuring. It can also refer to a temporary suspension of work or employment.

Synonyms

downsizing, reduction in force, redundancy.

Which Synonym Should You Choose?

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Word Description / Examples
layoff

Commonly used when talking about temporary job losses, often due to economic downturns or company restructuring.

  • The company announced a layoff of 200 workers due to reduced demand.
  • After the holiday season, there will be a layoff for seasonal employees.
redundancy

Commonly used in British English to describe job losses when positions are no longer needed, often due to technological changes or business reorganization.

  • The new software implementation has led to redundancies in the IT department.
  • Several workers faced redundancy after the company automated its logistics operations.
downsizing

Refers to a permanent reduction of the company's workforce, typically to cut costs or improve efficiency.

  • The corporation is downsizing to streamline operations and reduce costs.
  • After the merger, downsizing was inevitable to eliminate redundant positions.
reduction in force

A formal or administrative term, usually used in official announcements or documents to describe workforce reduction.

  • The organization will experience a reduction in force next quarter due to budget constraints.
  • A reduction in force is planned as part of the company's new strategic direction.

Examples of usage

  • Many employees were affected by the layoff at the company.
  • The layoff came as a shock to the staff members.
Context #2 | Verb

workplace

To layoff someone means to dismiss them from their job, usually due to financial constraints or organizational changes.

Synonyms

dismiss, make redundant, terminate.

Which Synonym Should You Choose?

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Word Description / Examples
layoff

Typically used in a business or economic context when employees are let go due to economic reasons or organizational restructuring, often temporarily.

  • Due to the pandemic, the company had to lay off several employees.
  • Seasonal layoffs are common in the construction industry.
dismiss

Generally used in a formal context when an employee is let go for specific reasons related to performance, behavior, or other personal factors; can also be used outside of work contexts.

  • The teacher decided to dismiss the class early.
  • He was dismissed from his job due to poor performance.
terminate

Used in a formal business context, often in HR communications, to indicate the end of an employment contract, sometimes with a neutral or negative connotation.

  • Her employment was terminated due to violation of company policies.
  • The contract was terminated after both parties failed to reach an agreement.
make redundant

Commonly used in British English in a business context when employees are let go because their position is no longer needed.

  • She was made redundant when the company restructured.
  • Being made redundant can be a challenging experience.

Examples of usage

  • The company had to layoff several employees due to budget cuts.
  • She was laid off after the company's merger.

Interesting Facts

Economic Impact

  • Layoffs can lead to higher unemployment rates, affecting the economy as many people may struggle to find new jobs.
  • Companies often lay off workers during economic downturns to save money and keep the business running.
  • Some industries, like manufacturing and tech, have seen significant layoffs during recessions due to automation and changing market demands.

Workplace Culture

  • The experience of being laid off can lead to a phenomenon known as 'survivor's guilt,' where remaining employees feel bad for those who lost their jobs.
  • Layoffs can affect employee morale, leading to decreased productivity and engagement among those who remain.
  • Companies that communicate openly about layoffs often maintain better trust and loyalty among remaining employees.

Legal Aspects

  • In many countries, workers who are laid off may be entitled to severance pay, unemployment benefits, and sometimes additional support services.
  • Employers are often required to give advance notice of layoffs, especially in larger organizations, to comply with laws like the WARN Act in the U.S.
  • Discrimination laws protect employees from layoffs due to race, gender, or other protected statuses, ensuring fairness in the process.

Historical Context

  • The term 'layoff' became more common during the Great Depression when many companies had to reduce their workforce drastically due to financial stress.
  • Mass layoffs have been a hallmark of the tech industry since the 2000 dot-com bubble burst, affecting thousands of employees across several companies.
  • During the COVID-19 pandemic, many businesses faced unprecedented layoffs as lockdowns and health concerns drastically impacted economic activities.

Psychological Effects

  • Being laid off can lead to feelings of anxiety, stress, and a loss of identity for many workers, as jobs often form a significant part of personal identity.
  • Support programs, such as counseling and career coaching for laid-off employees, have become essential for psychological recovery after job loss.
  • Studies have shown that individuals who focus on skill development during a layoff period tend to recover faster and find new employment more easily.

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