A layoff is a suspension or permanent termination of employment of workers by their employer due to reasons unrelated to the employees performance. It is different from being fired, which is a termination of employment due to something that the company deems was the employees fault. A layoff can occur when a company needs to downsize a department, restructure its organization, eliminate redundant positions, or cut costs. It can also occur due to a halt in production, the need for a workforce with a different skillset, or having to relocate the business. A layoff can be a traumatic event for an employee, and it is best to speak with the HR department to ensure that you have all the necessary exit paperwork you need, and to ask if the company is offering any sort of exit package and if you are able to keep your health insurance.