What does layoff mean?
A layoff is the temporary suspension or termination of someone's employment, usually because an employer is facing weak demand, financial difficulty, or organizational change. It may affect a single worker or occur on a large scale as part of mass layoffs. The word also refers to the resulting period of unemployment and, more broadly, to the suspension of an activity or project. Layoffs can be announced through a formal notice and may be temporary, allowing workers to return if conditions improve, although some job losses that begin as layoffs are ultimately permanent. In everyday use, the term carries the difficult implication of sudden job insecurity and financial strain. It is distinct from voluntary resignation or retirement, though the specific circumstances may not always be clear to outsiders.
The temporary dismissal of an employee or group of employees, especially because of reduced business activity or restructuring.
"Several employees were affected by the layoff."
Usually countable and commonly used in the plural when many workers are dismissed.
To dismiss an employee or group of employees temporarily, usually because of reduced business activity or restructuring.
"The company laid off fifty workers during the downturn."
Less common as a single verb than the separated form “lay off,” but accepted in American business usage.
Used when referring to multiple dismissals or reductions in employment, especially when they affect many workers at once.
"The company experienced thousands of layoffs last year."
A layoff can affect one person or thousands at once, turning a downturn in the economy into an immediate loss of income for workers and their families.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does layoff come from?
The word dates from the mid-19th century and is formed from the verb phrase “lay off,” meaning to set aside, discontinue, or remove from employment temporarily. Its business sense developed as industrial companies began adjusting their workforces to changing orders and economic conditions. The element “lay” ultimately comes from Old English, while “overlay” and “underlay” share the same older verb in other compound formations.
How layoff is actually used
The noun is common in British and American English. Although it often denotes temporary unemployment, it can also refer to employment that ends permanently, especially when used in the plural.