Layoffs

Layoffs refer to the termination of employees from their positions, typically due to economic conditions, restructuring, or company downsizing, rather than individual employee performance. Layoffs can be temporary or permanent and may affect a specific department, a group of employees, or the entire organization.

Examples:

• A technology company downsizing its workforce by 15% due to decreased demand for its products.
• A retail chain closing multiple locations, resulting in the layoff of employees at those stores.
• An airline reducing staff in response to a significant drop in travel during an economic recession.

Cases:

• In 2020, many companies in various sectors implemented layoffs as a response to the COVID-19 pandemic and its impact on business operations.
• A manufacturing company might lay off workers if a new technology is introduced that requires fewer employees to operate machinery.