Also known as a layoff or downsizing. Typically, the permanent termination of several employees as part of a planned program owing to an employer's need to reduce payroll costs or headcount in response to changed business circumstances. For example, an employer may conduct a reduction in force due to:

In certain circumstances, a reduction in force can be a temporary suspension of employment for a definite or indefinite period of time, during or after which employees may be recalled to work when business circumstances improve.

For more information, see Practice Note, Conducting Layoffs and Other Reductions in Force and Layoffs and Reductions in Force Checklist