One of the options for businesses struggling financially is to reduce their task force or employees who work for them. Though an utterly difficult affair for both management and employees, the point of downsizing is to either lay off staff or reduce their pay in a bid to put the business on the right path financially or strategically.
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Downsizing efforts need to be well thought out. It needs planning for both pre and post layoff for both employees and management. How much forward warning should the company give? What about severance pay and supporting them finding new jobs? Some companies, like Hewlett Packard implemented a creative way of getting finances back in order by asking employees to take one day of leave without pay each fortnight until its revenue increased.
