Is it okay to answer the job interviewer that I was laid of because of company's downsizing?

Does it give an idea to the interviewer that I was incompentent that's why I got laid off. Or is there any other way to answer the question of why I left a company because of redundancy?

Answer:
Telling them that you were laid-off from a job doesn't hurt your chances for the job. It is something that was out of your control. Saying you quit is another matter. Never tell them you quit!
I used the downsizing excuse once and got the job.
Honesty is your best bet and this is happening to a lot of companies.
Yes, it's a good reason. It doesn't mean that your incompetence got you the ax. It could as easily mean that you were low on the totem pole. You know how that goes, right? Last hired, first hired. No one needs to know about your incompetence.
yes it's ok, the economy is not that good to begin with so it's a believeable excuse even if it's not true.
If you left your last job under less-than-ideal circumstances, you probably dread this question. Here's how to handle it. Never lie. If you were fired, don't say you quit. A background check will reveal this lie easily. Don't say anything negative about your former boss, co-workers or company. Any negativity, frustration or anger will only reflect negatively on you.
Sample -- If you were fired for not adhering to a company policy: 'I was asked to leave for violating a company policy that I feel wasn't communicated to me clearly. I should have taken the responsibility to read all of the company policies and ask questions about those I didn't fully understand. That will be the first thing I do in my next job.'

Any employer would love to hear stories about how employees take responsibility for their actions and learn from their mistakes. Make sure they understand that what happened to cause you to leave your last job was the exception, not the rule. Provide references or letters of recommendation to verify that your job performance is above par.

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