The Impact Of Work Force Reduction On Success And Failure

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 2013-14 are surveyed for the study. We found that reducing workforce results in failed M&A, weal so found that workforce reduction within first two months of merger increases the risk of failure.