Extreme downsizing is what management professor Wayne Cascio says companies engage in when they cut their workforce by more than 20 percent. To date, almost 40 percent of the United States's largest companies practiced extreme downsizing during the Great Recession.
Downsizing has long been thought to give an immediate boost to the bottom line - the notorious "Seven Percent Rule," which is the assumption that after a company announces a major layoff, its stock price will rise rough
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