Corporate Restructuring: The Impact of Workforce Reduction on Success and Failure

27 Pages Posted: 18 Sep 2012 Last revised: 22 Sep 2012

See all articles by Arti Trivedi

Arti Trivedi

Shri Chimanbhai Patel Institute of Management & Research

Dr.Jay Desai

B.K.School of Business Management, Gujarat University

Nisarg A Joshi

Shri Chimanbhai Patel Institute of Management & Research

Date Written: September 18, 2012

Abstract

In this paper we examine the impact of workforce reduction on success or failure of corporate restructuring. Reduction in Contractual labor and Exempt workforce is studied with time horizon from restructuring event. Also, the percentage reduction and its impact on success or failure is studied. HR Managers of thirty companies who have gone under restructuring process during the year 2010-11 are surveyed for the study. We found that reducing workforce results in failed M&A, we also found that workforce reduction within first two months of merger increases the risk of failure.

Keywords: mergers & acquisitions, corporate restructuring, M&A, workforce reduction, layoffs, impact of workforce reduction, strategies to manage corporate restructuring effectively

JEL Classification: G34

Suggested Citation

Trivedi, Arti and Desai, Jay and Joshi, Nisarg A, Corporate Restructuring: The Impact of Workforce Reduction on Success and Failure (September 18, 2012). Available at SSRN: https://ssrn.com/abstract=2148192 or http://dx.doi.org/10.2139/ssrn.2148192

Arti Trivedi

Shri Chimanbhai Patel Institute of Management & Research ( email )

Opp. Karnavati Club
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Ahmedabad, 380015
India
+91-79-30076616 (Phone)

HOME PAGE: http://www.artitrivedi.com

Jay Desai (Contact Author)

B.K.School of Business Management, Gujarat University ( email )

Navrangpura
Ahmedabad, Gujarat 380015
India
+91-79-26301342 (Phone)

HOME PAGE: http://www.jaydesai.net

Nisarg A Joshi

Shri Chimanbhai Patel Institute of Management & Research ( email )

Opp. Karnavati Club,
S.G. Highway
Ahmedabad, 380015
India

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