Am I missing something? They are the exact same thing. The company decides to terminate your employment contract, as opposed to you making the decision.

Fired means that they don't want you doing your job. Laid off means that they don't want anyone doing your job.

Damn, that's concise and to the point. Thanks.

"Fired" is used to refer to termination for cause. As in, you're being let go because you screwed up.

Being laid off is termination without cause. You're just being let go as part of a workforce reduction.

"For cause" usually means something much worse than "poor performance". That term is generally harassment, fraud/embezzling, other illegal acts, gross insubordination, etc.

Being fired because you are performing poorly in your job is, crazily enough, not "fired for cause" but simply "fired".

Being fired "for cause" usually makes one ineligible for unemployment income.

Thanks. I used the "for cause" a little sloppily. A sales person who misses quota will still be able to get unemployment benefits, while another salesperson who likes to walk around the office without pants will probably not.

Exactly - getting laid off means that the job you did no longer exists - it is unrelated to your personal skills, performance, productivity, etc etc.

Additionally, being laid off usually results in at least a respectable severance package. Being fired generally means you only get the minimum legally owed to you.

It also effects your ability to find work. Being laid off can be completely out of your hands and isn't always something that works against you.

There is no stigma attached to getting laid off, at least not when interviewing at anywhere sane. People understand that it just happens sometime.

Context matters, though.

Being one of 14,000 employees let go because they chose to eliminate that entire half of the company doesn't necessarily mean anything. Being one of four engineers chosen to be let go from a team of 20 can say something about your skill level.

That you were the last hired? The most senior (expensive)?

The practical difference is the ability to collect unemployment benefits. If you're fired you may not be able to collect benefits depending on the situation and state where you live.

Good companies also typically offer some documentation that the termination was not performance-based.