A layoff is the termination of employment due to business reasons such as cost-cutting, organizational restructuring, or economic downturns. Unlike dismissals for performance or conduct issues, layoffs are typically driven by external factors and are not a reflection of the affected employees’ performance. Layoffs can be temporary or permanent, and they often involve multiple employees.
The process of conducting layoffs requires careful planning and communication to minimize the impact on the workforce and maintain morale among remaining employees. Employers must ensure compliance with labor laws and provide adequate notice and severance packages where applicable. Support for laid-off employees, such as outplacement services, can help them transition to new employment opportunities. While layoffs are challenging for both employees and employers, transparent communication and fair treatment can help manage the process more effectively and preserve the organization’s reputation.
You may also be interested in learning about these terms:
Layoff
Workforce Planning
