Downsizing is the permanent reduction in an organization’s workforce. It occurs when an organisation is looking to reduce the number of its employees through restructuring in order to increase profit and maximize efficiency. It may also result from a merger of two companies, or when a company cuts a product line or service, and can be the result of poor economic conditions.
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Human Resources Institute of New Zealand (HRINZ). “Downsizing.” Human Resources Knowledge Base. Online: http://www.hrinz.org.nz/Site/Resources/Knowledge_Base/A-H/Downsizing_.aspx (Retrieved on August 14, 2014)
Merriam-Webster Dictionnary, “Downsize.” Online: http://www.merriam-webster.com/dictionary/downsize (Retrieved on August 7, 2014)