80% of managers say they use layoffs as a soft firing, and not for cost-cutting

According to a new survey, business leaders have used layoffs to head off lawsuits and avoid hurting employees’ feelings, among other reasons.

Technically, layoffs occur because a company is cost-cutting or restructuring, and not through the fault of an employee. Firing occurs because an employee is at fault. But while layoffs are technically supposed to be blameless, they are still bad for employees, bad for companies, and bad for communities. For example, one study found that layoffs can lead to increased criminal behavior.