Downsizing: Is There a "Right" Way?

Abstract

In response to the pressures of surviving in in a competitive global market, many companies are turning to downsizing, right sizing, restructuring, reduction-in-force, and/or business process re-engineering, among others. Regardless of the terminology used, an inevitable result is a loss of jobs. Companies fail to grasp the profound ramifications of downsizing for both the people laid off and the organization and work force that remain after downsizing is complete. A search of the literature was conducted to ascertain what leading theorists and practitioners are saying about downsizing and the "right" way to go about it. This search culminated in the Nine Point Model for Downsizing (NPMD). The model is used to analyze a downsizing case study involving the December 1997 layoff of 19.000 employees by a leading manufacturer of imagine products.