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Downsizing and Redundancy
Downsizing and redundancy

There is a large and growing literature on the subject of downsizing and redundancy. At the same time, however, there is much about their effects that we simply do not know. This chapter will begin by providing some definitions and important distinctions in terms, followed by a description of the economic rationale that drives layoffs. Then we will consider the extent of downsizing in the United States, Western Europe, Asia, and Australia, followed by a discussion of methods used to execute downsizing and redundancy strategies. We also will examine alternatives to downsizing, and survey research in that area. The chapter concludes with a discussion of the effects of downsizing and redundancy at multiple levels – individuals who stay, those who ...

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