Maybe not in some countries. It’s certainly a way that term gets used in the US. See also, reduction in force (RIF), downsize, reorg, shifting priorities, etc. The way labor laws are written, companies are encouraged to do this, because it circumvents protections against firing someone on leave, pregnant, or in a minority. When an individual is let go, there’s risk of litigation or claims that it’s because of some protected status: and correct or not, we’re a very litigious country with a lot of lawyers looking for a payday. So more and more, companies have normalized layoffs even when they’re doing very well, because its a way to “clean out” the company of less productive employees with much less risk of getting sued: and they can always rehire or shift exceptional employees they want to keep.