[ley-awf, -of] 
| 1. | the act of dismissing employees, esp. temporarily. |
| 2. | a period of enforced unemployment or inactivity. |
| lay·off (lā'ôf', -ŏf') n.
|
The temporary or permanent removal of a worker from his or her job, usually because of cutbacks in production or corporate reorganization.
Layoff
1. When a company eliminates jobs regardless of how good the employees' performance. 2. A risk reduction, made by investment bankers, that minimizes the potential downside associated with a commitment to purchase and sell a stock issue unsubscribed by stockholders holding rights.
Investopedia Commentary
1. This is usually because the company is facing financial difficulties. 2. This is a method whereby an investment banking firm, who has committed to buying up all the unsubscribed shares during a rights offering, will reduce the time risk involved due to the difference between entering into the contract and selling the shares. In other words, they are hedging against any losses due to time.
See also: Hedge, Investment Banker
layoff