Layoff facts for kids
Layoff (also called redundancy in British English) is when a company tells an employee they no longer have a job. This is different from being fired for doing something wrong. A layoff usually happens because the company needs to save money or doesn't need as many workers anymore.
In the past, a layoff often meant a short break from work, like when a factory closed temporarily. Today, a layoff is usually permanent. However, sometimes a company might lay off workers for a short time, hoping to bring them back later.
Contents
What is a Layoff?
A layoff happens when a company decides to reduce its workforce. This means they let go of employees, not because of the employee's performance, but because of the company's needs. For example, a company might have fewer customers, new technology might do some jobs, or the company might move its work to another place.
Why Do Companies Lay Off Workers?
Companies decide to lay off employees for many reasons. These reasons are usually about the business itself, not the individual worker.
Economic Changes
Sometimes, the economy slows down. When people buy fewer products or services, companies earn less money. To stay in business, they might need to cut costs, and laying off workers can be one way to do that.
New Technology
New machines or computer programs can sometimes do tasks that people used to do. When this happens, a company might not need as many employees for those specific jobs.
Company Restructuring
A company might decide to change how it operates. This could mean merging with another company, closing certain departments, or changing its main focus. These big changes can lead to layoffs.
Moving Work (Offshoring)
Some companies move their operations or parts of their business to other countries where it might be cheaper to produce goods or provide services. This is called Offshoring. When work moves, jobs in the original country can be lost.
Layoff vs. Being Fired
It's important to know the difference between a layoff and being fired.
- Layoff: This happens because of the company's business needs. It's not usually about how well the employee did their job.
- Being Fired: This happens because of the employee's actions or performance. For example, if an employee breaks company rules or doesn't do their job well, they might be fired.
In many places, there are different laws and rules for layoffs compared to being fired. For example, employees who are laid off might receive special payments or benefits, like unemployment benefits, to help them while they look for a new job.
What Happens After a Layoff?
When someone is laid off, it can be a difficult time. However, there are often resources available to help.
Unemployment Benefits
Many governments offer unemployment benefits to people who have lost their jobs through no fault of their own. These benefits provide some money to help with living costs while the person searches for new work.
Looking for New Work
People who are laid off often start looking for new jobs right away. They might update their resume, attend job fairs, or use online job search websites. Sometimes, companies that lay off workers offer help with job searching or training for new skills.
History of Layoffs
The idea of a "layoff" has changed over time.
- Early Days: In the past, especially in factories, a layoff often meant a temporary stop in work. For example, if there wasn't enough material, workers might be sent home for a few days or weeks until production could start again. They expected to return to their jobs.
- Modern Times: Today, a layoff is usually a permanent separation from the company. While temporary layoffs still happen, the common meaning of "being laid off" is that the job is gone for good.
Understanding layoffs helps us see how businesses and the economy can change. It also shows how important it is for people to have support when they lose their jobs.
See also
- Unemployment
- Offshoring
- Labour law
