There are many companies currently using downsizing as a method to face the changing economic climate. Identify one company, recently reported as having downsized and answer the following questions about that company’s choice to downsize.
1. Why does employment downsizing make sense for the organization?
2. What is the business case for employment downsizing?
3. What is the problem that the organization is trying to solve?
4. If the problem is short-term cash flow, are there alternative ways to cut costs?
5. Do prospective layoffs include hard-to-find skill sets?
6. How will the downsizing affect high performers who are difficult to replace?
7. What are the short-term payoffs from a downsizing strategy?
8. What long-term threats to the organization’s strategic success might be associated with employment downsizing?
9. What long-term costs might the organization incur by implementing employment downsizing? Do the long-term benefits associated with employment downsizing outweigh its short-term costs?
