Journal of Management Research

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New Developments in Reduction-in-force


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1 Director, MBA/EMBA Programs Regent University School of Global Leadership & Entrepreneurship 1333 Regent University Drive, Suite 102 Virginia Beach, VA 23464-5048, United States
     

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After nearly three decades of corporate restructurings and reorganizations, the modern organization has continued to resort to reductions-in-force (RIF) strategies. This article presents an overview and a brief historical analysis of some of the most popular RIF concepts that have been adopted by firms and governmental agencies on a global scale since the late 1970s. The review found that most RIF tools have their ischolar_main in the core-periphery model. While some of the more traditional RIF strategies have remained popular, the paper showcased two contemporary practices; the traditional (nonselective) layoffs and stealth layoffs. A discussion of modern-day restructuring and RIF practices was deemed timely given the high levels of layoffs currently occurring in the global automotive, retail, and finance-related industries. Finally, a particular focus is placed on presenting practical implications of the conduct of RIF for the firm, the managers, and the individual employees.

Keywords

Reduction-in-force (RIF), Layoff, Strategy, Restructuring, Typology
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  • New Developments in Reduction-in-force

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Authors

Franco Gandolfi
Director, MBA/EMBA Programs Regent University School of Global Leadership & Entrepreneurship 1333 Regent University Drive, Suite 102 Virginia Beach, VA 23464-5048, United States

Abstract


After nearly three decades of corporate restructurings and reorganizations, the modern organization has continued to resort to reductions-in-force (RIF) strategies. This article presents an overview and a brief historical analysis of some of the most popular RIF concepts that have been adopted by firms and governmental agencies on a global scale since the late 1970s. The review found that most RIF tools have their ischolar_main in the core-periphery model. While some of the more traditional RIF strategies have remained popular, the paper showcased two contemporary practices; the traditional (nonselective) layoffs and stealth layoffs. A discussion of modern-day restructuring and RIF practices was deemed timely given the high levels of layoffs currently occurring in the global automotive, retail, and finance-related industries. Finally, a particular focus is placed on presenting practical implications of the conduct of RIF for the firm, the managers, and the individual employees.

Keywords


Reduction-in-force (RIF), Layoff, Strategy, Restructuring, Typology

References