A layoff or downsizing is the temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees for business reasons, such as personnel management or downsizing an organization.

What does layoff mean in work?

A layoff is generally considered a separation from employment due to a lack of work available. The term "layoff" is mostly a description of a type of termination in which the employee holds no blame. ... Most laid-off workers will typically be eligible to collect unemployment benefits.

What happens when you are laid off?

When an employee is laid off, it typically has nothing to do with the employee's personal performance. ... In some cases, laid-off employees may be entitled to severance pay or other employee benefits provided by their employer. Generally, when employees are laid off, they're entitled to unemployment benefits.