Smithfield Foods laying off 1,800 employees,closing 6 of its 40 plants,and cutting production by 10 percent in 2009 in efforts to stop the liquidity drain on the firm is an example of

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Smithfield Foods' actions of laying off employees, closing plants, and cutting production can be categorized as retrenchment, which is a strategic action taken by a company to reduce its size or scale back its business operations in an effort to improve its financial performance and profitability. Divestiture refers to selling off a subsidiary or a part of the business, backward integration is when a company acquires a supplier, liquidation is the process of terminating a business and selling its assets to pay its debts, and forward integration is when a company acquires a distributor. None of these concepts accurately describe Smithfield Foods' actions.

Smithfield Foods Laying Off 1,800 Employees,closing 6 of Its 40