HomeHR glossaryDownsizing
Downsizing
Downsizing reduces personnel in an organization and can be applied to improve operational efficiency or reduce costs. However, this process needs to be done carefully to avoid affecting the organization's development and to ensure fairness and sincerity toward affected employees.
 
Example
A company reduces the number of salespeople because they compete with companies that sell online. In other words, "downsizing" can be understood as a restructuring process to improve organizational performance.
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