Fundamentals of Management, 11/e

2B How Does a Manager Handle Layoffs?

Coca-Cola laid off 1,600 to 1,800 of its corporate U.S. and international employees.13 American Express cut costs by eliminating 4,000 jobs after failing to meet long-term revenue growth targets.14 eBay cut 2,400 jobs (7 percent of its workforce) to adapt to changing conditions.15

In the past decade, and especially during the last few years, most global organizations, as well as many government agencies and small businesses, have been forced to shrink the size of their workforce or restructure their skill composition. Downsizing has become a relevant strategy for meeting the demands of a dynamic environment.

What Are Downsizing Options?

Obviously, people can be fired, but other restructuring choices may ...