Workforce Reductions
Workforce Reductions Workforce reduction is considered a downsizing strategy that directly affects the workers and employees of the company. The strategy is used as a result of slump in demand or to improve the operational efficiency of the company. The key reasons of workforce reduction include heightened competition, changing markets and gaps in the employment laws. In addition, improvement in the cash-flow, stakeholder expectations and overcapacity/poor management lead to massive layoffs to gain short-term profits and value (Rogovsky, 2005). The workforce reduction as a strategy of the company has both positive and negative impacts.
Positive Consequences of Reduction in Workforce
There are some positive consequences ...