Termination vs Layoff

Employment can end in two main ways: termination or layoff. While both result in job loss, they occur for different reasons and can affect your future job search differently.

Termination:  Being terminated (or “fired”) typically occurs due to performance issues or conduct, including:

  • Poor work quality or missed productivity goals
  • Chronic tardiness
  • Misuse of company time or resources
  • Insubordination
  • Workplace harassment
  • Unprofessional behavior that reflects poorly on the company

Additionally, in all U.S. states, “at-will” employment allows employers to terminate without cause, provided the reason isn’t discriminatory or illegal.

Layoff:   A layoff occurs when positions are eliminated for business reasons unrelated to employee performance, such as:

  • Company downsizing due to financial constraints
  • Mergers or acquisitions creating redundant positions
  • Outsourcing of job functions
  • Company relocation

Job Searching After Job Loss

After Termination:

  • Understand the specific reason for termination to address it in future roles
  • Be prepared to briefly explain the situation in interviews, focusing on lessons learned
  • Leverage your professional network for references and opportunities
  • Search for positions that better match your skills and work style

After a Layoff:

  • Apply for unemployment benefits promptly
  • Consider freelance or contract work while job hunting – check with your unemployment office  about how contract work or part-time work will impact your ability to collect unemployment.
  • Address the layoff directly in your cover letter
  • Maintain networking activities to discover new opportunities
  • Remember that layoffs reflect business decisions, not personal performance