Workforce Reduction During Mergers
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Why do mergers and acquisitions often lead to the consolidation of positions or reductions in workforce? What effect do these changes have on employees?
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This solution discusses workforce reduction during mergers.
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The best way to think of this is to consider two organizations and think of departments and positions that are vital to their operations. Accounting, for example, is necessary to keep track of all the finances are accounted for. IT services, maintenance crews etc. are similarly important to the infrastructure.
Now if the two organizations are to merge together, either via a merger or an acquisition, this new organization would suddenly acquire an accounting team/IT team/maintenance team almost twice the size of the originals in either organization which is far more ...
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