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

But Cloudflare shares were off 19% in extended trading following the layoff announcement.

From MarketWatch • May 7, 2026

The company is also expecting restructuring costs between $50 million and $60 million during the quarter, relating to a layoff of roughly 700 employees.

From The Wall Street Journal • May 7, 2026

The low pace of jobless claims flies in the face of the high-profile layoff announcements at large tech companies that have received a lot of attention.

From Barron's • Apr. 30, 2026

The agency also continues to face questions over its management and last week announced the layoff of more than 250 employees.

From Los Angeles Times • Apr. 29, 2026

The San Antonio was a terrible place to make a season debut after a long layoff.

From "Seabiscuit: An American Legend" by Laura Hillenbrand

Related Words

• cutback
• unemployment