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

Cisco’s layoff announcement adds to a rising number of job cuts in the tech sector this year.

From Barron's • May 13, 2026

Private-sector layoff announcements are actually running below levels of a year ago.

From The Wall Street Journal • May 8, 2026

The pending contract includes seniority and layoff protections, higher wages and outlines provisions for progressive discipline and a stepped grievance process, the Writers Guild Staff Union said in a statement Friday.

From Los Angeles Times • May 8, 2026

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

From MarketWatch • May 7, 2026

When the layoff came there, they’d go on to another factory.

From "A Tree Grows in Brooklyn" by Betty Smith

Related Words

• cutback
• unemployment