Firms use downsizing as a restructuring strategy for different reasons, but the major tactical reason is
A) poor unit performance from decreasing industry attractiveness.
B) decreasing market share from increasing industry competition.
C) shifting industry characteristics.
D) the desire to lower labor costs.

Question

Quizplus · Accepted Answer

The desire to lower labor costs is the major tactical reason for firms to use downsizing as a restructuring strategy.

Firms Use Downsizing as a Restructuring Strategy for Different Reasons