Meaning, Scale, and Scope of Downsizing
(A Literature Review of Corporate Downsizing : Part 1)

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Authors: Franco GANDOLFI and Philip A. NECK
Published in: Vol:8 No.3 / 2007

      Downsizing is an ubiquitous feature of many firms in the industrialized world. As a goal-oriented restructuring strategy, downsizing endeavors to increase an organization’s overall performance. A multitude of synonyms and euphemisms have appeared in the academic literature and popular press. The consequences of downsizing have proven to be persistently negative. Numerous firms around the world embarking upon downsizing have largely failed to accomplish their highly anticipated objectives. The execution of downsizing is not confined to economic and organizational realms, but has profound after-effects upon all stakeholders. The first part of this literature review presents the relevant body of literature and clarifies the many mysteries and misconceptions associated with the meaning, scale, and scope of downsizing.