Other forms: laid off; laying off; lays off
When employers lay off workers, they end their employment, usually because the company is cutting costs.
When bosses lay off employees, it's different from firing them for doing a bad job. In most cases, companies lay people off in an effort to save money. It's awful to lose your job no matter how it happens, but when workers are laid off, they sometimes get severance pay. Lay off is used as a verb, while layoff is a noun: "It's shocking they decided to lay off our whole department. I didn't expect layoffs this year."