When managed effectively, downsizing can yield significant economic and organizational benefits.
However, leadership also faces significant challenges in the process: addressing the needs of those employees who are asked to leave, as well as those who stay behind; mitigating the risk that the process used to make reductions in the workforce may itself constrain the organization's potential for future growth; and ensuring that layoffs are communicated and carried out in a way that is consistent with the company's values and core beliefs.
