Describe three situations in which an organization may feel that it has to reduce the size of its workforce (i.e., downsize).

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Downsizing occasionally must be executed on short notice in response to emergency events like a sudden economic downturn or the loss of a major contract or customer. In all other cases, it should be the result of considered strategic planning: the organization has adopted a strategy to offer new product or services, cater to a new demographic customer group, or compete in a new geographic area. Current employees do not possess the new skill sets required and cannot be easily retrained. They must be replaced.

Describe Three Situations in Which an Organization May Feel That