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