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Downsizing can take a toll on society, especially when a large percentage of a firm’s employees...

Downsizing can take a toll on society, especially when a large percentage of a firm’s employees are terminated. Should government restrictions be placed on downsizing? Why or why not?

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Answer #1

Downsizing refers to termination of employees by corporates often on a large scale to reduce costs. Companies go for downsizing during recession times in order to reduce the costs.

This would affect the for sure because, people losing their jobs suddenly will result in loss of source of income for a lot of families. These people may not be able to find jobs all of a sudden when they lose their jobs. So a I accept that their would be a negative impact on society as a result of downsizing.

Yes, government should place restrictions on downsizing, they should implement rules as to the limit of downsizing and also agreement between employees and employers should be taken into place so that, employees won't be terminated all of a sudden. Because this would benefit the employees and there won't be any adverse effects as said above.

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