If You Think Downsizing Might Save Your Company, Think Again
Harvard Business Review
APRIL 26, 2017
Detractors, on the other hand, point to negative consequences including performance and productivity declines, decreases in customer satisfaction, and adverse effects on remaining employees, such as increased stress. These included the size of the firm, changes in market capitalization, prior performance, profitability, trajectory toward bankruptcy (using the Altman Z score ), a large number of employees per sales relative to their industry peers, and other indicators of financial health.