Why was my unemployment claim denied by NYS Department of Labor - need to understand reason

This happens more often than it should. Your employer probably reported incorrect information when you filed your claim. You'll need to file an appeal within 30 days of the denial notice. Make sure to include copies of your layoff documentation, any emails about the downsizing, and a written statement explaining exactly what happened. The NYS Department of Labor will schedule a hearing where you can present your case.

Keep filing your weekly claims! Even if you're appealing, you need to continue filing to preserve your right to benefits. If you win the appeal, you'll get backpay for all the weeks you were eligible. If you stop filing weekly claims during the appeal process, you could lose those weeks permanently.

I had something similar happen to me last year. My employer told NYS Department of Labor I was fired for misconduct when I was actually laid off. It took 6 weeks to get it sorted out but I eventually got all my benefits retroactively. The key is having documentation - sounds like you have what you need.

If you're having trouble reaching NYS Department of Labor by phone, I used this service called Claimyr that helped me get through to an actual agent. They basically call for you and get you connected. Check out claimyr.com - they even have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of trying to call myself.

ugh the same thing happened to my cousin except they said she quit when she was actually fired for no reason... like how do they even get this stuff wrong?? makes no sense

Definitely appeal this! The NYS Department of Labor makes mistakes all the time with employer reporting. I work in HR and I've seen employers accidentally check the wrong box on forms or misunderstand what constitutes a layoff vs termination. Your documentation should clear this up easily at the hearing.