Layoff

Layoff refers to a temporary or permanent termination of employment by an employer. It typically occurs when a company needs to reduce its workforce due to financial difficulties, restructuring, or other reasons. Employees may be entitled to severance pay, unemployment benefits, and outplacement services when laid off. Severance pay is a lump sum paid to the employee as compensation for their job loss. Unemployment benefits are payments made to the employee by the government to help them cover their living expenses while looking for a new job. Outplacement services are programs designed to help the employee find a new job.

Causes of Layoff 

• Economic downturn: When the economy is doing poorly, businesses often have to cut costs to stay afloat. This can lead to layoffs as companies look for ways to reduce expenses.
• Competition: In a competitive market, businesses may need to lay off employees to stay ahead. This can happen when a company is trying to reduce costs or when it is trying to focus on its core services.
• Technology: Technological advancements can sometimes lead to layoffs. This is because new technologies can automate tasks that human workers previously did. As a result, businesses may need to lay off no longer-needed employees.
• Reorganization: Sometimes, businesses undergo reorganizations that lead to layoffs. This can happen when a company merges with an acquired company or is restructuring its operations.
• Performance issues: In some cases, employees may be laid off due to performance issues. This can happen if an employee is consistently underperforming or has violated company policies.