Question
when gas prices rise fewer people take vacations an airline considers downsizing when this happens what would be the main risk whith this response to the change in demand
the employees who stay will have more interesting work
it will require outsourcing the work
the employer cant control which employees will leave
it will be hard to reverse later
the employees who stay will have more interesting work
it will require outsourcing the work
the employer cant control which employees will leave
it will be hard to reverse later
Answers
GPT 3.5
The main risk with downsizing in response to a decrease in demand due to rising gas prices would be that it will be difficult to reverse later. When downsizing occurs, the company may lay off employees, reduce its operations, and potentially close certain routes or reduce capacity. This decision and its implementation can have long-term consequences, such as losing skilled employees, damaging employee morale, disrupting company culture, and incurring costs for severance packages and rehiring in the future if demand eventually recovers. Additionally, downsizing may lead to a reduced ability to meet customer demands effectively once the market conditions improve, potentially resulting in loss of market share.