Think before you fire
In downsizing, firms often lose more than they bargained for
They have become commonplace even in good times. Now, with fears of economic slowdown multiplying by the day, layoffs and downsizing appear likely to become even more commonplace, as employers seek the quick cost savings that is their chief allure.
But this allure, new research finds, may turn out to mean grief not only for laid-off workers but for employers as well. According to a study in a recent issue of the Academy of Management Journal, downsizing can set off an exodus among retained employees that in some cases is much greater than the reduction achieved through the layoffs. The study was conceived and
conducted by Professor Charles Trevor of the University of Wisconsin Business School.
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