How to Answer – “Why were you Laid Off in an Interview?”

Imagine walking into the office, expecting another workday, only to be met with unexpected news: “Your position has been eliminated.” Whether through formal termination or a company-wide layoff, losing your job can be overwhelming. But before the anxiety spirals, take a breath. While the initial shock is real, so is the opportunity to navigate this change with clarity and purpose. This article clears the difference between termination and layoff, empowers you with your rights, and provides practical steps to take control of your career path. So, let’s dive in.

Termination VS Lay Off- How they are different?

Termination is a broad term for ending employment, either by choice such as quitting, retiring, or involuntarily like being fired or laid off. Whereas a layoff is a specific type of involuntary termination where a company cuts jobs due to factors like financial struggles, restructuring, or changes in the market. It is important to know that it is not done based on individual employee performance. The key difference is who’s to blame: layoffs happen for reasons beyond your control, while termination due to being fired usually signifies performance issues. 

Dealing with lay-offs can be hard but it’s not the end of the world. You need to take time to process it and restart thinking about navigating through this situation. The time you start interviewing for the new job, interviewers will dig about your layoff and you have to be well-prepared to face them with decent answers. Here we have mentioned how you can answer the question about layoff firmly.

How to answer in an interview about your layoff? 

Answering “Why were you laid off” in an interview can be tricky, but with the right approach, you can navigate it confidently and turn it into an opportunity to showcase your strengths. Here are some tips:

• Be Honest: Don’t try to fabricate or lie about the reason for your layoff. Employers can often find out the truth, and it’s better to be upfront and honest from the start.
• Keep it Brief: You don’t need to go into a lengthy explanation of the entire situation. Briefly state the reason for the layoff, such as “My department was downsized due to budget cuts” or “The company went through a restructuring and my position was eliminated.”
• Focus on the Positive: While acknowledging the layoff, shift the focus to your skills and accomplishments by mentioning what you learned from the experience and how it prepared you for future opportunities.
• Frame it as a Business Decision: Avoid blaming anyone or expressing negativity about your former employer and frame the layoff as a business decision beyond your control to showcase maturity and professionalism.
• Highlight Your Strengths: Use the opportunity to showcase your strengths and qualifications by explaining how they are relevant to the position you’re interviewing for because this will help the interviewer see past the layoff and focus on your potential.
• Be Prepared for Follow-Up Questions: Be prepared to answer questions honestly but concisely. You can also redirect the conversation back to your skills and qualifications because the interviewer might ask for more details about the layoff.

Sample Answers

Shifting Priorities

“My previous company shifted their strategic priorities, leading them to restructure their team and eliminate my position. However, I understand that these decisions are often necessary for businesses to adapt and grow. In the meantime, I used my time to [mention activities, e.g., pursue freelance work, volunteer for relevant organizations]. This experience allowed me to [mention gained skills or insights].”

Contractual End

“My role was a fixed-term contract and that unfortunately came to an end. While I enjoyed the project and learned a lot, it allowed me to explore other opportunities and [mention specific experiences, e.g., attend industry conferences, update my portfolio]. I’m now seeking a position that allows me to leverage my expertise in [mention relevant skills] and contribute to a long-term project.”

Personal Growth Opportunity

“I decided to leave my previous company to pursue personal growth opportunities. While I valued my experience there, I felt the need to [mention specific reasons, e.g., expand my skillset, explore a different industry]. This time away has allowed me to [mention specific actions and achievements, e.g., complete professional certifications, work on personal projects]. I’m now eager to apply my refreshed perspective and skills to a new challenge like this position.”

Company Restructuring

“My previous company, unfortunately underwent a restructuring due to [briefly mention reason, e.g., changing market conditions, acquisition]. While my role was impacted, it allowed me to explore new skills through [mention activities, e.g., online courses, volunteering] which strengthened my expertise in [mention relevant skills].”

Merger/Acquisition

“Following a merger between [company names], there were necessary adjustments, and my position was among those affected. However, I used this time to [mention activities, e.g., network with industry professionals, freelance projects] which expanded my professional network and broadened my perspective.”

Financial Downturn

“The economic downturn affected my previous company, impacting several departments, including mine. While it was a challenging time, I focused on remaining positive and productive by [mention activities, e.g., upskilling, personal projects]. I’m confident I can leverage these experiences to add value to your team.”

Now, that you know what you should answer about a layoff, it is extremely important to know what you should not include or do while answering.

Common Mistakes to Avoid

Here are some common mistakes to avoid while answering “why were you laid off” in an interview:

• Being vague or dishonest: It’s important to be honest about the reason for your layoff, but you don’t need to go into every detail.
• Blaming others: Avoid placing blame on your former employer, colleagues, or external forces. This can make you come across as unprofessional and negative.
• Dwelling on the negatives: Avoid expressing bitterness, anger, or sadness about the layoff and focus on the positive such as what you learned or how you’ve grown from it to show your resilience.
• Going on a tangent: Keep your answer concise and focused. The interviewer isn’t looking for your entire life story, just a brief explanation of your layoff.

While you are done with interview preparation, here are also a few things that you need to know when you are laid off. Let’s first start with understanding employee rights when laid off.

Employ Rights when Laid Off

Your employee rights in India upon layoff depend on several factors, including your length of service, industry, and the size of your company. Here’s a breakdown:

• Severance pay:
  • Industrial Disputes Act (IDA): 15 days’ average pay for each completed year of service (if covered under the act).
  • Payment of Gratuity Act: Gratuity payment if you’ve worked for 5+ years.
  • Company policy: Additional severance might be provided based on the company’s policy or contractual agreement.

• Notice period: Depending on your employment contract or applicable law, you might be entitled to a notice period before being laid off.
• Unpaid dues: All earned wages, accrued leaves, and any other pending dues must be cleared by the employer.
• Protection against unfair termination: If the layoff is deemed unfair (e.g., discriminatory reasons, procedural flaws), you might have a case for challenging it through labor courts. Consult a lawyer for legal advice.
• Re-employment benefits: Certain industries offer schemes for re-employment or skill development assistance to laid-off workers.

Knowing solely about the laws is not enough if you don’t know how to use them. It is equally important to know what you should do after a layoff and get your rights.

What to do after a layoff?

Getting laid off can be overwhelming, but it is very important to remember that it’s a temporary setback and not the end of your career. Here are some steps you can take after being fired

Immediate Steps:

• Process your emotions: Allow yourself time to grieve the loss of your job and acknowledge your feelings of anger, sadness, or uncertainty because bottling up emotions can hinder your progress.

• Understand your rights: Contact your HR department or consult a lawyer to save yourself from being exploited and understand your legal rights, severance pay, unpaid wages, and unemployment benefits.

• Secure your belongings: If possible, collect your personal belongings from your office while adhering to company policy.

Moving Forward:

• Take a break: Don’t rush into your next job hunt. Take some time to de-stress, recharge, and reflect on your career goals.

• Evaluate the situation: Analyse why you were fired. Was it Restructuring? performance-related? company issues? This understanding will help you navigate future interviews and choose better opportunities.

• Update your resume and portfolio: Tailor your resume and portfolio to highlight your skills and accomplishments relevant to your desired career path and consider taking online courses or acquiring new skills to boost your profile.

• Reach out to your network: Inform your trusted contacts about your situation and leverage their connections for potential job leads and support.

• Prepare for job hunting: Practice your interview skills, research the industry trends, and prepare answers to common questions about your job loss by framing your story positively, focusing on learnings and future aspirations.

• Stay positive: Don’t let this setback define you. Maintain a positive attitude and redirect your energy into your job search.

Take this hard time as a part of your career and life. Consider this phase as low and look forward to highs that are on your way. All the tips mentioned here are to help you tailor appropriate answers to the different situations. However, you can tailor answers as per your situation. The samples are created just for reference. But you can consider what to do and don’t while framing the right answer for your job interview. If you have any suggestions or would like to share any other tips on the topic, feel free to comment down below.