Within the week, it was business as usual.I wish I could say that’s the only downsizing I’ve had to conduct. There is a wealth of available talent in the marketplace when rehiring is necessary.

Let’s have a look at all the reasons that may induce an organization to resort to downsizing.The economic crisis is the biggest cause of downsizing a business. After an emotional week of going back and forth on the numbers, our core team agreed on the production number we could support and the dollars needed to be reduced in each of the categories. We also setup a monthly meeting to review all expenses in the future. Michael Dubicki, Director of Business Development at Flexioffices commented; “Covid-19 has had a profound effect on businesses. Chances are, this wasn’t an easy decision. Use my experience to save time and money. We then translated those numbers into head counts and worked out a plan to downsize as efficiently and compassionately as possible.We agreed the plan should be executed within three weeks to ensure it could be done in a timely manner as to not draw out the emotional impact it would have on those involved. Downsizing business: How to manage downsizing employees. We had several meetings and discussed the problems they already knew existed and elicited their support.

From my experience, leaders often focus on the first — survival —- to the detriment of the other two.In each of the downturns that I went through, we were successful in achieving all three objectives.
Now that the dust has settled for the time being, there should be a formal mechanism for keeping the employees informed as to progress being made and a forum for soliciting their feedback re what can we do to execute better/smarter. I think that Larry Putterman’s post, “10 Lessons Learned From Downsizing a Business” is an excellent guide for any leader contemplating such an action.I would like to comment on one of his lesson points —planning. Honest, open, and timely communication is important to getting buy-in for most company programs. We increased our competitive posture by taking actions — such as closing factories and modifying pension plans — that would not have been feasible in good times. The main reason of downsizing is to restructure an association in order to make it more competitive.A company simply reduces its workforce in order to cut the operating costs and improve efficiency. I am impressed. Sometimes downsizing your organization is very necessary for a few conditions. Once the situation is defined clearly and fairly, then so too should be the plan for recovery or action. 3. However, it is not always a bad thing for your business. Remember, downsizing is actually a business plan, not just a cost-cutting exercise. Sometimes downsizing your organization is very necessary for a few conditions. There has never been a regret when the downsizing is justified for almost any reason. To be fair, we worked out unique solutions like sharing a particular employee that we did no want to lose between different departments. We had to have the top players in each position. There was a union, long-time employees, and family members that would be directly impacted from the decisions made. A downsizing business is not ideal for those who wish to advance within a single business. It wasn’t that he or she wasn’t a good employee, it was simply that he or she wasn’t the number one employee. In business terms, downsizing often described as ‘trimming the fat’ that means to reduce operating costs and making a company leaner. The question we ask in our law firm is why did we wait so long to act. We explained as thoroughly as we could how we were working to save the business. I sense in this instance, a small/medium size company, it was not an ongoing priority with the owners, until the crisis loomed.

We met with the union representative from each department and explained the situation as to why we had to reduce some jobs to save others.
4. The following Monday morning, we arrived early to settle any problems that might arise. Focus a great deal of energy on increasing profit if company downsizing looks like it is on the horizon for your small business. For those considering moving, 58% will be downsizing; Of those planning to move/considering it, 55% will be looking to make a decision in the next 3-6 months.

On the other hand, the approach you outlined, with a high degree of transparency, respect and a rapid implementation cycle is well designed to keep the business running as a team, rather than creating a culture of fear and uncertainty.I like your bandage analogy. However, it is not always a bad thing for your business. A downsizing business may be viewed negatively in the public eye if the business owner is not vocal about the downsizing.

We outlined to management why all discussions were not to be discussed with anyone. In the end, there was a lot of creative compromise. The labor can be obtained by ‘exporting’ the job to other countries for better working experience and effective business growth. Now after 3 years of large losses and the market/competitors have all moved on, I now need to make very deep cuts and big changes to give the company a chance of becoming viable again. It went better than expected because of all the pre-planning.


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