Legal Definitions - reduction in force

A reduction in force, also known as a layoff, is when an employer terminates the employment of many employees in a short amount of time. This can be either temporary or permanent.

For example, if a company is experiencing financial difficulties and needs to cut costs, they may decide to lay off a large number of employees. This would be considered a reduction in force.

Under the Worker Adjustment and Retraining Notification Act, a reduction in force that results in the loss of work at a single site, of 30 days or more, for at least 500 full-time employees, or 50 or more full-time employees if they make up at least 33% of the employees at that site, is considered a mass layoff.

Overall, a reduction in force is a significant event that can have a major impact on both the affected employees and the company itself.