In the US, a W-2 job means one where you are classified as an employee, which means various labor regulations apply in your relationship with your employer. But even then, everywhere except the state of Montana has the concept of "at-will" employment, meaning absent an explicit contract that says otherwise, an employer or an employee can sever the relationship whenever they want.
So if you are an employee and the manager wants to reduce labor costs, they can simply terminate employees, and the employees would have to apply for unemployment benefits from the state government.
An example of a non W-2 job is when a business sells their services to another business, even if the business is just 1 person. Such as a business hiring a painter who works by and for themselves. There would be no labor regulations involved here because the painter is not an employee.
W-2 is the federal tax form a business gives to employees stating the taxable income and other information for the year, and 1099 is the federal tax form a business gives to vendors stating the taxable income for the year.