Layoff | Meaning and Definition

What is Laid off? 

Layoff is the process of a company’s workforce being reduced by the employer suspending or permanently terminating a worker or group of workers. Employees are not laid off because of poor performance or a breach of duty.

People are frequently laid off as a result of a drop in income, a drop in sales, or some other type of financial difficulty. 

Causes Of Lay Off

•   Cost Reduction Methods – This might be due to lower sales or a lack of financial backing from the company’s investors. One approach for a corporation to save money is to lay off some people and use the money for something else.
•   Mergers – When two businesses or branches of the same business merge. Because there may be duplicate roles inside the branch or organization, the corporation may opt to lay off a few people during the merger.
•   Loss Of Fund – When two businesses or branches of the same business merge. Because there may be duplicate roles inside the branch or organization, the corporation may opt to lay off a few people during the merger.
•   Improvement In Technology – Automation has become increasingly popular in the commercial world as technology advances. As a result, some firms may decide to lay off workers in order to reduce job redundancy.