Layoffs refer to the process where a company reduces its workforce, often due to financial challenges, restructuring, or changes in business strategy. This decision can affect employees across various levels and departments, leading to job loss for those impacted. Layoffs are typically announced through formal communication, and affected employees may receive severance packages or assistance in finding new jobs. The reasons for layoffs can vary widely, including economic downturns, decreased demand for products or services, or advancements in technology that make certain jobs obsolete. Companies like General Motors and IBM have historically implemented layoffs to adapt to market conditions and improve efficiency.