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Should companies downsize their workforces to decrease expenses and maximize profits? No; downsizing leads to demoralization of the workforce and causes a drop in employee productivity.

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1 Answer

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Final answer:

No, downsizing can lead to demoralization of the workforce and a drop in employee productivity. Companies can explore other strategies to reduce expenses and maximize profits.

Step-by-step explanation:

Downsizing can lead to demoralization of the workforce and a drop in employee productivity. When companies downsize, employees may feel uncertain about their job security and become disengaged, resulting in decreased motivation and productivity. Additionally, downsizing can damage employee morale and loyalty, leading to a loss of valuable talent. Instead of downsizing, companies can explore other strategies to reduce expenses and maximize profits, such as improving operational efficiency and exploring new revenue sources.

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User Tom Swirly
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