Layoff

Layoff: Explanation

Layoff refers to the termination of employment by a company due to various reasons, often beyond the employee's control. It is typically driven by financial constraints, restructuring, or a reduction in workforce. Unlike termination for cause, layoffs usually result from organizational changes rather than individual performance issues. Employers may offer severance packages to affected employees to ease the transition.

Layoff: Example

In a layoff scenario, a manufacturing company faces economic challenges, leading to a workforce reduction. Despite skilled employees, the company must cut costs, resulting in the layoff of several production workers. The affected employees, though valued, lose their jobs due to the organization's need to adapt to market conditions and maintain financial stability.