It is the reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired.
Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people.
And, according to my research, below is a large company who undergone downsizing for how many years now.
LOMO
Leningradskoye Optiko Mechanichesckoye Obyedinenie
Lenigrad Optical & Mechanical Enterprise
For more than 80 years LOMO has designed and manufactured optical devices for various applications. Beginning with its foundation in 1914 LOMO was largest optical device manufacturer for Russian Army. Times have changed and now LOMO works not only for military and space programs but also for science and industry and for the consumer products market.
This is situated in the city of St. Petersburg – well-known Russian scientific and cultural center, the most westernized in Russia. The staff of LOMO consists of highly professional designers and workers with wide experience – 8,500 strong. The company downsized from 34,000 within the last ten years as a result of changes in production structure.
All of these changes have given LOMO the advantage to be competitive with other high-end optical manufacturers worldwide.
SOURCES:
http://whatis.techtarget.com/definition/0,,sid9_gci759501,00.html
http://www.lomoplc.com/aboutlomoFrames.htm
http://www.lomoplc.com/index2.html
2 comments:
wow... 80 years in business, huh?
resorting to downsizing their workers maybe hard on the part of the workers who were removed, but then this could very well help in the company.
let us not look on the negative side of downsizing but also the benefits given by it, especially for the companies. (Not that I'm in favor of downsizing, mind you) ^^,
well downsizing is one of the strategy a company could have when reducing cost.. but this is really a hard part for the employees especially when there is no job waiting for them after they were laid off.
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