layoffs - how to explain to prospective employer

It’s really none of their business and has zero to do with who you are as an employee, knowledge, and performance. You don’t bring it up unless they ask. If you are asked never ever talk badly about your other employers. You should deflect and say how everyone in your dept or org was laid off due to unfavorable market conditions and/or struggle to raise capital. It’s a startup if they are seriously asking about layoffs at a startup I question whether that is a place I’d want to work at.

if the layoff is due to organizational reason, just say that. You can also say how many teams and people are impacted to highlight that the termination was not an individual case against you

Layoffs have nothing to do with the individual. It’s an organizational restructuring. If the entire team was laid off, then there is hardly anything anyone can do about it. Don’t bring it up, if asked (cause the news sometimes spread), just be honest that you were impacted as well and hence you are looking for a role. Don’t berate your ex-employer, cause layoffs are part and parcel of our industry. That gives companies flexibility to manage their cost and that also shows maturity on your part. Now, if only a part of the team was laid off and you were one of them, then either you were the bottom performer and/or the company did not believe that you were worth keeping around based on what you were being paid. Again, not a big deal cause value and/or worth is subjective as well.