To mitigate risks, companies should consider the following steps:
Clear Communication: Transparently communicate the reasons for downsizing and the benefits for the company's future. Support for Affected Employees: Provide severance packages, outplacement services, and counseling to help affected employees transition. Focus on Retained Employees: Offer support and reassurance to remaining employees to maintain morale and productivity. Plan for Operational Continuity: Ensure that critical functions continue without disruption during the downsizing process.