The future of Corporate Downsizing...

Now that the US economy is on the rebound, will it mean an end to corporate downsizing? The short answer is yes and no. Companies will combine adding jobs with eliminating jobs. This sounds like a contradiction, but it really isn't. Companies have learned from prior economic growth periods that if you over build your workforce, you will pay the price during an economic downturn. Companies also realize that we are in a highly competitive global market, competing with countries that benefit from very cheap labor. In order for US companies to compete, they have to run lean, and maximize output through technological innovations. Companies will add employees  in positions that will help them to capitalize on economic growth, but will cut back and/or outsource  other jobs that are less critical or bottom line oriented . This strategy will  achieve a balanced approach to the size of their workforce.

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