How to Best Explain Being Laid Off 

Job candidates typically answer this interview question in one of two ways.

👉 One approach is to put it bluntly:

“I was laid off.”

This isn’t a bad answer, but it’s also not a great one, and in general it’s a missed opportunity.

👉 The other approach is to skate around the answer with something like this:

“Well the company wasn’t doing very well at the time. Management was very disorganized and they didn’t really know what they were doing. So, when the recession hit, it led to a lot of people getting laid off, myself included.”

This isn’t the worst thing you could say, but again it’s a mediocre answer and makes you sound like a very negative person.

The most important thing to keep in mind when answering the interview question, “why did you leave your previous company?” is the context of the person asking the question.

As we’ve discussed in previous posts, keeping your interviewer in mind is one of the most important keys to having a successful job interview.

Let’s dig into a few examples to see how to answer this tricky interview question a bit better.

(👉 If you've been laid off recently, be sure to check out our guide on what to do when you've been laid off, which has a 1 month, 3 month, and 6 month checklist you can use.)

Layoff Examples: Creating Empathy & Positivity

In my experience, the best way to have a successful interview is by creating empathy between you and your interviewer.

At the end of the day, the person who is interviewing you is a person just like you. They may have a family just like you, have hobbies just like you, they may even go to the exact same places as you.

As I discuss in our free interviewing course, it’s super important to connect with them on a human level and break out of the awkward dynamic that’s inherent during the interview process.

One way of doing this is by sharing something personal or emotional about yourself (like being laid off).

The reason that the first answers we looked at aren’t great is because they don’t connect with the interviewer in a meaningful way.

The first answer, “I was laid off,” makes you sound like an emotionless worker-robot who doesn’t really care about what they’re doing.

The second answer, “The company wasn’t doing very well at the time…” puts the focus on your previous company rather than on you.

👉 Being laid off is a highly emotional experience.

A good answer to being laid off should share some (not all) of the emotion of that experience to create empathy with the interviewer.

Here’s an example of how you can answer this question if you were let go due to the Covid layoffs:

“I was actually laid off due to the pandemic. It’s really sad because our team was so tight knit and we were doing great work, but the company just couldn’t sustain the same workforce. It’s unfortunate, but I’m just happy that at least me and my family are still healthy. How have you guys been dealing with the crisis?”

This answer works for two reasons:

1. It shows that you can stay positive during tough times.
2. It connects with the interviewer on an emotional level and opens up the conversation to hear their point of view too.

Here is another example of how to explain being laid off due to a recession or slowdown in business:

"Our company actually did layoffs because we were over-stretched in terms of headcount. They did the layoffs based on tenure at the company so unfortunately I was part of that group. I'm sad that it happened, but I'm still thankful for the time I had at the company. I learned SO much during that time, which I'm excited to bring to my next role."

Again, this shows you understand the situation and that you're able to keep a positive attitude and look towards the future.

The Layoff Answer Formula

A lot of job candidates will shy away from giving much detail to the question of why they were laid off.

👉 I know that when I was laid off I felt a lot of shame about the experience.

Without even realizing it, I had invented a story in my head that I was worth less than the people who didn’t get laid off, that somehow I wasn’t worth keeping.

But, of course, this isn’t the case.

Which departments get downsized during a recession has very little to do with the individuals within those departments.

If you ask any executive, you’ll discover that the decision to let any part of their workforce go causes a lot of pain and sleepless nights for them (Read Richard Branson’s letter to his employees).

At the end of the day, the decision is made based on survival, not personal performance or preferences. The decision is based on what will allow the business to survive through the recession so that they can rehire everyone when times improve.

👉 The good thing is that recruiters understand this very well.

Working in the HR department means that recruiters are on the front lines of these decisions. So, when you’re speaking to them as a candidate, be honest about what happened at your company without making excuses or pointing fingers.

Don’t blame the company. And don’t try to appear emotionless.

Instead your answer should demonstrate that:

• You understands the reality of the situation
• You can make it through tough situations
• You can keep a positive attitude.

Using these three elements in your answer can help you turn your layoff story into an asset rather than a liability.

If you want to learn more about what to do when you're laid off, read our full guide.