Downsizing a workforce is necessary when there is a falling demand for goods/services, factory/office closures, or jobs become surplus after mergers/takeovers. The human resources department will determine the skills of current employees, count those leaving, find who wants new jobs, and plan recruitment needs. Employees may be reduced through dismissal for unsatisfactory work/behavior or redundancy when they are no longer needed.

1. DOWNSIZING WORKFORCE

2. Workforce Planning
 This planning is establishing the
workforce needed by the business for
the foreseeable future in terms of the
number and skills of employees required.

3. Situation in which downsizing of
workforce is neccessary
 Introduction of automation
 Falling demand for goods and services
 Factory/ Shop/Office closure
 Relocating factory abroad
 Business has merged/ take over and
some jobs have become surplus

4. Human Resources Department will:
 Finding out skills of present employees
 Counting out anyone who will be
leaving
 Find out who want to fill new jobs
 Recruitment plan- how many new staff
need to be recruited

5. Reduce employees:
 Dismissal
 Redundancy

6. Dismissal
 This is where a worker is told to leave
their job because their work or behaviour
is unsatisfactory

7. Redundancy
 This is when an employee is no longer
needed and so loses their job. It is not
due to any aspect of their work being
unsatisfactory.