Workforce Downsizing

Workforce downsizing - here referring to a systematic reduction of employee headcount - is persistently utilized to increase organizational productivity, efficiency, profitability, and competitiveness. As a strategy of choice for firms around the world, workforce downsizing produces far-reaching financial, organizational, and social consequences. Despite the large body of literature, there continues to be confusion surrounding the downsizing phenomenon (Gandolfi and Hansson, 2011) and misperceptions abound (Datta, Guthrie, Basuil and Pandey, 2010). This paper examines the strategic element of downsizing. Its primary purpose is to present the various implementation strategies, archetypes, approaches, and tactics that have emerged in the downsizing literature. This research paper reviews a variety of perspectives and presents several conceptual frameworks that are necessary to obtain a more thorough understanding of strategic workforce downsizing