Conditions for Successful Downsizing

Posted on the 10 June 2024 by Martingevans



Downsizing is only successful in the long run if two conditions are met:
  • that the layoffs are structured according to a well-defined strategy, and
  • top management shares the pain though significant salary reductions.

GBH has met the first condition through its strategy of cutting local news television. I regret the loss of those programs but, unlike WBUR, GBH has a strategy. However, GBH's failure to cut top managements' salaries is a severe impediment. Remaining employees will be resentful, and this may reduce commitment to the new strategy.