Dixon Enterprises needs to reduce its long-term workforce.The firm wants to reduce the scale and scope of its business to improve financial performance.The company is most likely:
A) conducting a layoff.
B) downsizing.
C) buying out the workforce.
D) rightsizing.

Question

Quizplus · Accepted Answer

Downsizing refers to reducing the size of a company's workforce or operations in order to improve financial performance. This typically involves eliminating positions, departments, or product lines that are not essential to the company's core business strategy, which is likely the case for Dixon Enterprises. A layoff, on the other hand, refers to the temporary or permanent termination of employees due to a lack of work or financial distress, which may not be the case for Dixon Enterprises. Buying out the workforce is not a common strategy for reducing long-term workforce, and rightsizing refers more broadly to adjusting the size and structure of a company's workforce to better align with its business strategy, which may or may not involve reducing headcount.

Dixon Enterprises Needs to Reduce Its Long-Term Workforce