Downsizing – A Dumb Change Management Strategy

Thursday, April 24th, 2008

Cost cutting by downsizing is a risky strategy. Even a small reduction in force “can unleash an exodus of valuable employees.” Here’s the really scary part. Companies that laid off half of one percent found that turnover rate was 13 percent. (Turnover in companies that didn’t downsize was 10.4 percent.)

The Academy of Management Journal report cited in Business Week. 4/21/08.