In six pages laying off employees without generating ill feelings or adverse publicity and how to communicate corporate downsizing to shareholders externally and internally are examined. Six sources are cited in the bibliography.
Name of Research Paper File: D0_MTdownsi.rtf
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of the reasons inherent for downsizing, management feels terrible in having to lay off staff, particularly staff that has worked for a company for several years. The questions, then to
be answered in this report are, why would downsizing be necessary, how downsizing would be conducted with the least amount of harm to company and shareholders and how this information
be communicated to internal and external shareholders so as not to promote panic that a company is doing poorly. There is a
temptation, in any lay off situation, just to do it and get on with the business of he day. However, a solid communications plan would also prevent employees - both
those being laid off and those left behind - from becoming resentful or angry with the company. Its important to remember that an angry employee or ex-employee is probably the
worst public relations a company could have. Reasons for Downsizing The main reason for downsizing is a simple one - to
cut costs. However, as many management magazines have pointed out, there are other ways in which to cut costs other than cutting employees. Sometimes the reasons for downsizing involve production
aspects, such as the need for productivity gains, to meet global competition, or both (Guinuven, 2001). In most cases, however, downsizing should be the action of last resort,
the activity that is done only when all else has failed in terms of cost-cutting or productivity-enhancing measures. If it must be done, it should only be done with the
understanding that as the economy improves, the employees will be the first to have a crack at getting their old jobs back. How it will be done