A layoff is an employer-initiated termination of employment, typically driven by organizational restructuring, cost reduction, business unit closure, merger or acquisition integration, or broader economic downturn — as opposed to a performance-based termination for cause. Layoffs are distinguished from firings by intent: an employee who is laid off is generally considered to have been let go through no personal fault, which affects eligibility for unemployment insurance benefits and the framing of severance negotiations. From the affected employee's perspective, a layoff triggers a time-sensitive set of decisions: filing for unemployment benefits before any waiting period expires, reviewing any severance agreement before signing (and if the amount is significant, consulting an employment lawyer), activating professional networks immediately while the situation is current, and deciding whether to seek similar employment or use the disruption as a catalyst for a deliberate career transition. In knowledge work industries, layoffs frequently create consulting opportunities — former clients may seek to retain the laid-off professional's expertise directly.
Glossary entry