DOWNSIZING

DOWNSIZING
Downsizing is defined as a reduction in the number of employees, and sometimes in the number of operating units within a company. It began as a strategy of weak corporations as a way to reduce the costs of the company. Shareholder wealth was the main concern, and companies were willing to do whatever they thought necessary to convince the market that the stock price should rise. The stock price had become more important in the decisions of top management because many companies were offering stock options to them as part of their salaries.
Downsizing was being used as a survival strategy by corporations who were trying to increase their market values especially in Turkiye. It was often perceived as making a company more competitive in today's global ...