Downsizing (Staffing)
Reducing workforce size to cut costs or restructure.
Real World
In 2023, Amazon cut over 18,000 corporate roles to reduce costs after over-hiring during the pandemic, using a mix of redundancy packages and a freeze on backfilling vacant positions.
Exam Focus
For 'analyse' questions, always link downsizing to both a short-term benefit (lower costs) and a long-term risk (morale/talent loss).
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