What is a Company Layoff?
During periods in which a company experiences a drop in sales or revenue generation, it is not unusual for company layoffs to occur. Essentially, a company layoff is a temporary period in which employees that occupy specific positions within the corporate structure are not required to report to work. The layoff occurs due to a lack of demand for the labors normally exerted by the employees in the production of the goods or services offered by the business. While a layoff can range from a period of a week to an indefinite amount of time, the company layoff is not the same as termination. Companies choose to implement layoffs because there is a reasonable expectation of needing to reactivate the laid off employees at a future date.
