What Are Layoffs?

We break down what layoffs are, how they differ from firings, and why terminology matters in the tech industry.

Here are the core points from the lesson:

• Layoffs are ad hoc, unpredictable events that cut a large number of employees for economic reasons, unlike regular performance-based cuts where low performers are ranked out.
• Being laid off is generally not the employee’s fault and is different from being fired for incompetence, which is why layoffs—especially in tech—typically come with generous severance packages.
• Most recent “layoffs” in tech are technically RIFs (reductions in force), meaning the company has no intention of rehiring those employees, even though the industry commonly uses the term layoff.