Consequences, Payoffs, and Fallout of Downsizing
(A Literature Review of Corporate Downsizing: Part 3)
Downsizing and its many associated euphemisms have become part of the managerial lexicon. Downsizing became a management catch-cry in the 1990s which subsequently came to be known as the downsizing decade. As a strategic tool, downsizing has changed tens of thousands of corporations and governmental agencies and the lives of millions of blue-collar and white-collar workers around the world. As a goal-oriented restructuring strategy, downsizing endeavors to increase a firmís overall performance, profitability, and competitiveness. This second part of the downsizing literature review serves to examine the organizational, financial, and human consequences following the execution of downsizing.