In the early 1990s, downsizing became the hot trend throughout the for-profit corporate world.
Companies would make deep employee cuts, causing profits (and often stock prices) to rise, making senior executives temporarily look like heroes. While this focus on downsizing made the balance sheets look good in the short-term, many of these firms felt the impact of their cuts long-term. While claiming they were ‘cutting the fat,’ in most cases, they also cut a large chunk of the muscle. As critical departments and good employees went by the wayside at many firms, the quality of company products and services diminished, and ultimately revenue dropped

read more