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Staff Downsizing Case Study: A Lesson in Layoff Avoidance

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Stage of Staff Downsizing Effort: In Progress

Drivers for Staff Downsizing

  • Ordered to reduce the IT budget by 15-18% in October 2009.
  • The current hope is that the economy will upswing sufficiently to avoid the layoffs entirely.

Targets and Timeframes

  • The IT budget needs to be reduced another 5-10%.
  • A conclusion was reached in January, 2010 that staff layoffs must be considered to facilitate further reductions.
  • Layoffs are still in the pre-announcement phase. The announcement will be made in the May/June timeframe if they decide to proceed.

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