layoff

American  

[ley-awf, -of] / ˈleɪˌɔf, -ˌɒf /

noun

1. the act of dismissing employees, especially temporarily.

2. a period of enforced unemployment or inactivity.

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layoff Cultural  

1. The temporary or permanent removal of a worker from his or her job, usually because of cutbacks in production or corporate reorganization.

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Usage

What’s the difference between layoff and furlough? A layoff is usually a permanent removal from a job. A furlough is a temporary release of a worker from their job, typically with the expectation that they will be asked to return. Both words can also be used as verbs. An organization can lay off employees or furlough them. The adjective forms are laid off and furloughed. The word layoff is typically used in the context of a company permanently letting go workers due to economic reasons (such as not being able to afford to pay them) as opposed to performance reasons (employees let go for poor performance are typically said to have been fired). A furlough typically involves an employer requiring an employee to stop working for a period of time during which they will not get paid—though furloughed workers sometimes keep their benefits, such as health insurance. Furloughs can happen during government shutdowns or when a company does not need certain employees for a certain period of time but expects to need them back after that period ends. Here’s an example of layoff and furlough used correctly in a sentence. Example: A furlough is not ideal, but at least it’s temporary—the company is doing it to avoid layoffs. Want to learn more? Read the full breakdown of the difference between layoff and furlough.

Etymology

Origin of layoff

1885–90, noun use of verb phrase lay off

Explanation

When a company informs a group of workers that their employment is terminated, it's called a layoff. In most cases, layoffs are a way for a business to save money. When the word layoff was coined in the 1880s, it meant "rest or relaxation." It evolved to be defined as "periodic respite from work," like a break for seasonal workers, and then "temporary release from employment." Employers began using it as a euphemism for "permanently firing people," a way to make it sound less harsh. Today when someone mentions layoffs, they're not temporary, unless they're specifically described that way.

Example Sentences

Layoff notices likewise didn’t impact the trajectory of payrolls at the time, he says.

From Barron's • Feb. 5, 2026

Layoff tactics are changing—and their blunders keep coming.

From The Wall Street Journal • Nov. 19, 2025

Layoff decisions were made by senior leaders as part of the wider restructuring effort, Goler added.

From Washington Post • Apr. 18, 2023

Layoff euphemisms — including “rightsizing” and “reduction in force” — make abstract what is a painful, human process, said Roger Lee, the creator of Layoffs.fyi, a site that tracks layoffs in the tech industry.

From New York Times • Oct. 29, 2022

Layoff a circle on the tin, of the diameter desired for the bottom of the groove.

From The Boy Mechanic: Volume 1 700 Things for Boys to Do by Popular Mechanics Co.

Related Words

• cutback
• unemployment