Phases of Cost Cutting: Downsizing is Dead; Long Live the Downsizing Phenomenon

Abstract

This downsizing research article presents a phase typology of job cutting which includes three distinct phases and three levels of argument. Conceptually, the paper draws heavily upon the seminal work of Littler and Gandolfi (2008) seeking to expand and update their 2008 Academy of Management (AOM) Conference paper. The paper culminates with a contemporary discussion of current downsizing practices showcasing that the strategy of downsizing has remained a popular restructuring method on a global scale.

Keywords

• downsizing
• cost cutting
• phase
• strategy