Downsizing

Downsizing is a reduction in a company's employees and positions undertaken as an intentional, proactive management strategy to improve the company's performance. Companies such as Cisco, Dell, Aetna, AT&T, General Motors, and many others have at various times implemented large-scale downsizing programs. Downsizing differs from terminations for cause, in which employees are released in response to issues with their behavior or performance, and from attrition, in which electing to not fill positions as they are vacated reduces staffing levels. Downsizing is also different from situations in which a company is forced to lay off all employees because it ceases operations, by choice of owners or by bankruptcy. During a downsizing, employees whose performance may be satisfactory or even above average are terminated through no fault ...