Reduction-in-force (RIF) – New developments and a brief historical analysis of a business strategy

Abstract

AbstractAfter nearly three decades of corporate restructurings and reorganizations, the modern firm has continued to resort to reduction-in-force (RIF) strategies. This article presents an overview and a brief historical analysis of some of the most popular RIF concepts that have been adopted by companies and governmental agencies on a global scale since the late 1970s. The research found that most RIF tools have their root in the core-periphery model. While some of the more ‘classic’ RIF strategies have remained popular, the paper showcases two contemporary practices, the traditional (non-selective) layoffs and stealth layoffs, that currently impact the corporate landscape. A discussion of modern-day restructuring and RIF practices is timely given the high levels of layoffs currently occurring in the global automotive, retail, and finance-related industries. In this paper, a particular focus is placed on presenting practical implications of the conduct of RIF for the firm, the managers, and the individual employees.