RSS

#HR Word: #Downsizing

21 Feb

Downsizing refers to the process of reducing the size of workforce by terminating the employment of employees.

 It is also referred as layoff

Downsizing is common in a recessionary situation where downsizing helps to cut costs.

 Some companies also layoff a percentage of low performers every year to maintain a competitive and efficient work force.

Employees asked to exit are often compensated by paying a fixed amount or a few months salary. 

Downsizing not only affects the employees who have to exit the company, but also the remaining employees who may fear themselves to be in a similar situation at a later time.

Advertisements
 
Leave a comment

Posted by on February 21, 2017 in HR Word of The Day

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: