Company layoffs occur when a particular business decides that it must cut costs by shedding payroll (i.e., laying off a set number of employees). This typically happens when a corporation is not meeting its budget for any number of reasons (e.g., a poor economy, rising cost of supplies, clients delay expected purchases, etc.). Therefore, what is often deemed most expedient for company management is to reduce payroll costs—which is usually the largest percentage of a company's budget. When this occurs, it is advisable for laid-off employees to immediately begin searching for new work. They should update their resumes to include skills learned on the job they just lost, and to peruse their contacts. Both of these will make them more marketable.