A layoff involves the termination of employment of one or more employees. The term most commonly applies to a termination for a group of employees. A layoff is typically triggered by a decline or expected decline in the sales of a business, or a restructuring that de-emphasizes certain parts of the business. It may also be associated with a corporate bankruptcy or some related event that makes it difficult for a firm to pay its employees. Thus, a layoff is considered a cost cutting measure that brings expenses into closer alignment with sales.

Related Courses

Cost Management Guidebook 
Human Resources Guidebook