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The Effects of Corporate Downsizing
The effects of corporate downsizing have greatly affected business profitability and how an employee views their employer. The goal of downsizing is to lower costs and increase efficiency thus increasing profitability. This can be an effective strategy to accomplish these goals but is often a knee-jerk reaction to today's profitability goals and has not been put together with long range planning. Companies began downsizing in the late 1970s to cut costs and improve the bottom line (Boone, 2000). This article will discuss the effects of downsizing, its effects on long term growth and stra…
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