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In my experience:
1. The job can be done by someone cheaper and bill the same rate = higher margins OR
2. The billable person is not engaging in firm responsibilities (only client responsibilities) OR
3. The billable person is on PIP/needs improvement/has a bad attitude
It wasn't being laid off, but I was on the flip side of #1 when I was at D back in 2013 or so. Huge engagement, we had about 350 people working on varying initiatives at the client. As a C, I got moved from one area to another to replace a M who rolled off, yet was still billed as a M.
Being staffed is a temporary situation, being laid off is a permanent one. Whether you're staffed is probably one of many inputs into whether you are laid off, but by no means is it the only one
Workforce reduction.
Wow crazy
I laid off people who were billing last year and it’s going to happen again here.
Why not wait until they're no longer billable?
Because there are three people on the bench who can take over and are cheaper / better / more connected internally.