Layoff refers to the termination of employment, typically due to reasons beyond the employee's control, such as downsizing, restructuring, or economic downturns. It is a temporary or permanent separation of an employee from their job, initiated by the employer.

Example
During a company's cost-cutting measures, they had to lay off 10% of their workforce, resulting in the termination of several employees' contracts. These layoffs were a response to declining profits and the need to reduce expenses.