Definition of Downsizing



Downsizing is a strategy used by organizations in stressful economic situations to reduce labor, employees, store, division or branch permanently for business survival. This strategy is not intentional and depends upon the external business factors or revenues business is generating.   

 


Downsizing of unproductive employees who are not adding value to the company is very common in normal business situations. This is the best way to reduce organizational costs. Downsizing always not bring positive long-term results to the company.

 

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