Layoffs

Layoffs mean workers lose their jobs because an employer reduces staff. In simple terms, layoffs happen when companies let workers go, often because of weaker demand, cost cuts, or business changes. Layoffs are important because they can signal pressure in a company, industry, or economy. If layoffs rise broadly, consumer confidence and spending may weaken because more people lose income or worry about job security. For example, if a company cuts 1,000 jobs to reduce costs, those job cuts are layoffs. Layoffs are not the same as quitting. A layoff is usually the employer’s decision, while quitting is usually the worker’s decision to leave a job.