This is a helpful question to help identify any underlying issues. If you were fired or laid off from your previous position, please be honest and explain the circumstances. It’s much better to hear it from you than finding out from checking out references. Being terminated isn’t always a red flag or a deal breaker as long as you can explain yourself. If it’s something work related, like you weren’t satisfied with the projects or you were hitting a career ceiling, it’s often helpful for both your potential employer and you to see if you’re a right fit for each other.