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The size of a firm’s sales force downsizing refers to the extent of planned reductions to a firm’s sales force. Salespeople are consistently one of the top positions laid off each quarter. It is a signal of market risk information that influences investors’ uncertainty regarding a firm’s future performance (i.e., idiosyncratic risk). Sales force downsizing decisions matter to Wall Street. Sales force management decisions driven by cost management concerns actually have unintended consequences that will offset any potential cost efficiency gains.