Retrenchment in Covid-19 world and beyond: Strategic or Knee-Jerk Reaction?

Abstract

“Downsizing has negative effect on companies. Early buyouts deplete the number of experienced, talented people, and multiple rounds of layoffs destroy employee commitment. Employees focus on keeping their jobs rather than doing their best.” -- Ken Blanchard, Quality Digest While the above statement emphasizes on the potential negative impact of retrenchment or downsizing of employees, it is still a common practice among the firms in the wake of recession or more recently due to the Covid-19 pandemic. Traditionally, there could be a wide array of well-thought objectives behind downsizing, ranging from reduction of costs or operational expenses, increase organisational IIMC Library Clipping Service: Opinion Pieces Source: News: Online: The Economic Times Dated: 24-08-2021 adaptability, focus on core work, outsourcing, adoption of new technology and neutralizing of political behaviour.