Create a new account

It's simple, and free.

Downsizing

U.S. businesses and their workers are experiencing the greatest number of job losses since the Great Depression. Even as GDP grew at a phenomenal 8.2 per cent, unemployed “workers aren’t being called back and the employment numbers did not budge,” (Coxe 37). Widespread agreement among economists supported the contention that big job gains would be posted last December. Many predicted job gains of 150,00-200,000, but when the actual report was released only 1,000 new jobs were posted in a workforce of more than 147 million (Coxe 37). In an effort to remain competitive on a global scale, once stalwart companies like Kodak, IBM, and others have implemented massive downsizing efforts and have transferred many positions offshore to take advantage of less expensive labor in Asia, India and other countries. This is true not only for low-end positions but increasingly true for high-end positions as well. Economic experts like Alan Greenspan argues such moves are a result of greater productivity with fewer employees from heavy investment in technology. Employees argue those left behind are burdened by increased workloads, loss of benefits, and executives who receive enormous bonuses because of sales growth that are the result of savings in labor costs and not increased productivity or sales. Despite President Bush’s controversial tax cuts, a federal deficit of more than $500 billion, and Greenspan’s lending of Federal Reserve money at one per cent interest, job gains have experienced zero growth (Coxe 37). This analysis will discuss the impact of massive downsizing both on organizations and employees.

Two of America’s oldest and largest companies have undergone massive downsizing in the past couple of years. Both IBM and Kodak have jettisoned tens of thousands of employees between the two of them. IBM refuses to confirm the numbers, but industry analysts say the company has laid off over 10,000 workers since 2001 (Newm...

Page 1 of 10 Next >

More on Downsizing...

Loading...
APA     MLA     Chicago
Downsizing. (1969, December 31). In LotsofEssays.com. Retrieved 09:04, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1685363.html