Downsizing- modern cost cutting art

Abstract
Though generally referring to an overall reduction in the size of a firm’s work force, downsizing is a term that has come to have an almost generic meaning. Accordingly, a wide range of actions, such as rightsizing, resizing, restructuring, delaying, and reengineering, have been addressed under the general rubric of downsizing. Regardless of the terminology used, however, the desire to be leaner, more flexible, and more responsive has made downsizing the most pervasive form of organizational change. There are many reasons why a company might need to downsize. In today's corporate America, it is a plain fact that far fewer employees are necessary to maintain a successful operation. Many times, it is the case where a technological advance or breakthrough makes it possible to replace a previously human job. It is also an all-too-common scenario that outside influences such as sudden shifts in the market or changed government policies force corporate executives to make coinciding decisions regarding their staff and these external changes. Downsizing began as the strategy of sickly corporations shedding workers in the face of weak demand, but soon strong firms looking to boost shareholder value even further adopted the policy.
Downsizing- modern cost cutting art Why do corporations downsize so abruptly and discharge so many employees all at once? That might at first seem like a silly question, but it is justified by the fact that corporate growth, the opposite of downsizing, tends to occur in a very gradual manner. New employees are typically hired after deliberate screening in an incremental fashion. Why, then, do companies let go of thousands of employees with so little notice? One reason for the abrupt character of downsizing is the fact that corporate executives commonly turn to downsizing in an effort to