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Downsizing & Restructuri NG: Presented By: Pragati Srivastava Samridhi Singh

Downsizing and restructuring were presented. Types of downsizing include reducing work weeks and job sharing. Reasons for downsizing include mergers, acquisitions, outsourcing, economic crisis, and strategy changes. Restructuring cases were discussed for Tesla, McDonald's, and Wells Fargo. Tesla laid off 7% of its workforce due to profitability concerns. McDonald's laid off corporate staff to reduce expenses by $500 million. Wells Fargo cut 700 commercial banking jobs as part of a multi-billion dollar cost-cutting measure.

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125 views10 pages

Downsizing & Restructuri NG: Presented By: Pragati Srivastava Samridhi Singh

Downsizing and restructuring were presented. Types of downsizing include reducing work weeks and job sharing. Reasons for downsizing include mergers, acquisitions, outsourcing, economic crisis, and strategy changes. Restructuring cases were discussed for Tesla, McDonald's, and Wells Fargo. Tesla laid off 7% of its workforce due to profitability concerns. McDonald's laid off corporate staff to reduce expenses by $500 million. Wells Fargo cut 700 commercial banking jobs as part of a multi-billion dollar cost-cutting measure.

Uploaded by

Pragati Srivastava
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

DOWNSIZING

&
RESTRUCTURI
NG
PRESENTED BY:
PRAGATI
SRIVASTAVA
SAMRIDHI SINGH
TYPES OF
DOWNSIZING
Reduce
Work Firing
Week

Job
Transfer Sharing
REASONS OF
DOWNSIZING
Merging of two of more firms

Acquisition Outsourcing

When
Strategy Economic
company goes
Changes Crisis
at loss
RESTRUCTURIN
G
CASES OF DOWNSIZING IN
ORGANISATIONS
Mc
Donalds
Tesla
Wells
Fargo
• Details about Tesla’s restructuring emerged
after the company announced a 7%
workforce reduction- its second round of
layoffs in just seven months.

• Tesla was asking laid-off employees to


cooperate in any claims against or by the
company, and to adhere to a strict non-
disparagement agreement, according to
documents attained by CNBC.

• Shares in the electric car company had


dropped about 20 % since Tesla CEO Elon
Musk announced the layoffs, and warned
of declining profitability through the first
quarter of 2019.
• McDonald’s was slimming down its
corporate structure and laying off
workers in an effort to reduce expenses
by $500 million by the end of 2019.

• MC Donald’s stock was up about 4.4%


after the company announced the
layoffs.

• The fast food giant said that it will


be laying off workers in its corporate
branch as part of a restructuring of its
U.S. business to increase profitability.
The burger chain sent out an email to
employees, suppliers and franchisees on
Wednesday, noting that the restructuring
process will result in some of its
workers having to “exit our system.”
• Wells Fargo laid off 700 employees in its commercial banking division as
part of a multi-billion dollar cost-cutting measure that impacted tens of
thousands of the bank's employees amid a terrible year for financial stocks
that's led to mass layoffs across the industry.
• 68,000. That's the amount of planned staff reductions that was planned by
banks across the world.
• Wells Fargo's layoffs reached the high end of sources' estimates, the impact
matched or even exceeded the significant overhaul announced at Deutsche
Bank in July 2019, which entailed the firm cutting its workforce by a fifth,
or 18,000 jobs
EFFECTS OF
DOWNSIZING Firm’s
Reputation
Suffers

Rethinking of
Early
employment
Retirement
strategy

Change in
Survivors
employee
Experience
Behaviour

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