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Discuss downsizing: Company A or Company B?

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A company decides to downsize one of their plants:

Company A consisting of 100 employees and 10 managers, and has an hourly rate of 10.00
Company B consisting of 8 managers and 50 workers, with an hourly rate of 12.00

My decision: I think its wise to lay off employees from company B, because it has low number of employees and the hourly rate is high even though company A has more employees.

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Solution Summary

The 191 word solution presents five consideration in downsizing to aid in coming to an educated solution to the problem.

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First, I assume that both plants make the same product and are therefore comparable in most respects.

Your point about the difference in hourly rates is valid, and should be a consideration in downsizing, but following are a few more points to discuss:

1. Why does it take fewer managers ...

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