Does being laid off mean I was a bad employee?

Being laid off does not necessarily mean that you were a bad employee. In some cases, it could very well mean that you did not complete your job tasks as you were expected to do so. In other cases, it could simply be a numbers game. Your employer might have needed to drop a certain number of employees and you simply did not have the amount of experience required to stick around. Many talented and fully capable employees get laid off every year and this could be the case in your situation. You could use this as an opportunity to get an even better job in the future.