Recent Trends in Human Resource Management

Thursday, January 31, 2008

Downsizing in Corporate Business

Downsizing is very common in corporate business in the United States. In fact, there are 50% more victims of downsizing in the United States every year than there are victims of violent crime. Downsizing is so common in the United States that the United States Bureau of Labor Statistics publishes quarterly statistical reports on 'mass layoffs.' More than forty-three million jobs have been lost to downsizing since 1979. Furthermore, (75%) of households have had a close encounter with downsizing since 1980, and one-third of people have actually lost a job because of downsizing. Another 40% know someone who has lost a job due to downsizing.

Unfortunately, the majority of people who have been downsized (65%) report earning lower salaries than they earned in the jobs they lost. This means only slightly more than one-third earn equivalent or higher wages in their next jobs. Not surprisingly, one in ten adults who has been downsized report that a major crisis has resulted in their lives as a result.

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