its financial health. It is important to note that immediate financial crises typically result in layoffs affecting workers who had no direct control over the situation that brought about the financial problems.
Some companies engage in downsizing in order to improve their financial statements. This is often the case when a company has suffered losses in its stock price and when it needs to demonstrate to investors that it is taking the right steps to improve its performance. This strategy is criticized because managers and executives of the organization who are not affected directly by the layoffs are often large stockholders. In this way, there is often the impression that the management is acting in its own interest without a pressing financial need and sacrificing workers in order to improve its short-term gain.
In still other situations, a company makes a long-term shift in its strategy which results in the need to downsize its operations. Such a shift might result from a change in the business environ
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