Several researchers have found that downsizing is not guaranteed to work; many downsized firms end up in worse financial shape after the downsizing than they were before.

Question

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Downsizing often aims to reduce costs and improve efficiency, but it can also lead to loss of valuable employees, decreased morale, and reduced innovation capacity, which can harm a firm's financial performance in the long run.

Several Researchers Have Found That Downsizing Is Not Guaranteed to Work;