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Downsizing

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  • Vollmann, Thomas
  • Brazas, Mark

Abstract

Downsizing -- reducing the size of the company's workforce -- is a job many managers face today, with little training or experience. Downsizing targeted entirely at cost control often fails to reverse the fortunes of a company facing decline, since it may fail to recognize the underlying causes of the cost crisis. Coupled with proactive restructuring strategies, however, downsizing can be another tool in the managerial kit bag to put the company on the road to domination rather than death. Downsizing need not be a reactive, short term quick fix, nor does it necessarily involve sudden, drastic layoffs and severe organizational disruption. This article discusses the limitations, hazards and benefits of downsizing, alternatives to downsizing, and effective implementation of downsizing.

Suggested Citation

  • Vollmann, Thomas & Brazas, Mark, 1993. "Downsizing," European Management Journal, Elsevier, vol. 11(1), pages 18-29, March.
    • Handle: RePEc:eee:eurman:v:11:y:1993:i:1:p:18-29
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