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Whether or not you mention it in your essay, it is 100% going to be brought up by admissions.
I would speak on it and turn it into how that experience has strengthened other areas in your life, or what you have learned. It will be challenging but I personally think it’s better if you bring it up, versus AOs bringing it up.
Typically on the application you need to explain why you left each job you have had.
While you don't need to write about a layoff in an essay, there are other places where you need to explain.
The layoff may be for cause but it could also be unrelated to performance.
Get ahead of it, especially if you have a gap on your resume.
https://www.stratusadmissionscounseling.com/blog/what-if-i-have-an-employment-gap-on-my-resume-2/