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Reasons for Downsizing

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Name the primary reason organizations downsize, how they meet this objective, and how in the process they might minimize the pain of layoffs.

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The solution discribes why organizations downsize.

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Primary Reason

The primary reason companies downsize is due to profit margins. If the company is not producing a profit, the fastest way to decrease debt is to downsize the company.

Downsizing Methods

Downsizing can be done in many ways. The company can offer early retirement to its long time employees; offer a buyout to all employees and see who does and who does not accept; eliminate certain employment positions; layoff the newest hires or just decide to layoff the staff at a certain ...

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