Question

What is downsizing in business studies

Answer 1

In business studies, downsizing refers to the process of reducing the size of a company by eliminating jobs or reducing the number of employees. This can happen due to various reasons such as cost-cutting measures, restructuring, mergers and acquisitions, changes in technology, or economic downturns. Downsizing often involves layoffs, early retirements, or offering voluntary separation packages to employees. The goal of downsizing is to streamline operations, increase efficiency, and improve financial performance. However, it can have negative impacts on employees, including increased workload, decreased morale, and job insecurity.