Managers Believe Downsizing Is Effective. Research Says: Nope

Overview
The article challenges the common belief that downsizing is an effective way to improve company performance. It presents research findings that show downsizing often backfires, harming morale, productivity, and long-term financial health.

Key Takeaways

• Downsizing rarely delivers the promised cost savings and can damage employee engagement.
• Companies that focus on people-centric strategies outperform those that cut staff.
• Sustainable performance comes from improving processes, culture, and talent development, not from quick headcount reductions.

Who Would Benefit

• Engineering managers considering workforce reductions.
• Technical leaders looking for evidence-based approaches to cost management.
• Executives and HR professionals responsible for organizational restructuring.

Frameworks and Methodologies

• People-first leadership principles.
• Continuous improvement and lean management.
• Data-driven decision making for organizational change.