Lay off has 3 different meanings across 1 category:
Verb
put an end to a state or an activity
"Quit teasing your little brother"
dismiss, usually for economic reasons
"She was laid off together with hundreds of other workers when the company downsized"
(of an employer) To dismiss (workers) from employment, e.g. at a time of low business volume or through no fault of the worker, often with a severance package.