To lay off means to end someone's employment, usually because a company needs to save money or doesn't have enough work, not because the worker did anything wrong. When a factory lays off workers, it means those people lose their jobs through no fault of their own. The company might be struggling financially, or maybe fewer customers are buying their products.

Being laid off is different from being fired. When someone gets fired, it's usually because they did something wrong or couldn't do their job well. But when workers are laid off, they're usually good employees who simply got caught in difficult business circumstances. A company might lay off hundreds of workers at once when times are tough.

The phrase can also mean to stop doing something, usually something annoying or bothersome. If your sister keeps teasing you and you finally say “Lay off!” you're telling her to stop it. A coach might tell an injured player to lay off practicing for a week, meaning they should take a break and rest. When you lay off the candy before dinner, you're stopping yourself from eating it. In this sense, laying off means backing away from something or giving it a rest.