Layoff Meaning: Definition, Examples, and Translations

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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?

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?

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.

Translations

To see the translation, please select a language from the options available.

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.

Origin of 'layoff'

The term 'layoff' originated in the United States in the early 20th century. It was initially used in the context of temporarily suspending workers without pay during periods of reduced productivity or financial strain. Over time, the term evolved to also encompass permanent dismissals due to economic reasons or organizational restructuring.

See also: lay, layabout, layer, layout, layover, mislay, outlay, outlays, relay.