LIFO (Last In, First Out)

LIFO (Last In, First Out) is a method used for inventory management and accounting, but it can also apply to employee layoffs or terminations. Under LIFO, the most recent employees hired (the last in) are the first to be laid off or terminated (the first out) when the company needs to reduce its workforce. LIFO is one way employers may decide who will be let go during layoffs, although it may not always be legally required or the most commonly used method. LIFO contrasts with other methods like seniority-based layoffs, where employees with the least tenure are often let go first.