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Economic downturns can cause major funding shortfalls for U.S. public schools, often forcing districts to make difficult budget cuts including teacher layoffs. In this brief, we synthesize the empirical literature on the widespread teacher layoffs caused by the Great Recession. Studies find that teacher layoffs harmed student achievement and were inequitably distributed across schools, teachers, and students. Research suggests that specific elements of the layoff process can exacerbate these negative effects. Seniority-based policies disproportionately concentrate layoffs among teachers of color who are more likely to be early career teachers. These “last-in first-out” policies also disproportionately affect disadvantaged students because these students are more likely to be taught by early career teachers. The common practice of widely distributing pink slips warning about a potential job loss also appears to increase teacher churn and negatively impact teacher performance. Drawing on this evidence, we outline a set of policy recommendations to minimize the need for teacher layoffs during economic downturns and ensure that the burden of any unavoidable job cuts does not continue to be borne by students of color and students from low-income backgrounds.