New Evidence regarding Organizational Downsizing and a Firm's Financial Performance: A Long-Term Analysis *

During the current economic turbulence facing corporations, executives are searching for strategies that will enable the organization to survive and potentially grow. One approach many companies are employing to cope with the hostile and dynamic environment is organizational downsizing. Recently, international companies such as General Electric, Lucent Technologies, General Motors, Fujitsu, American Airlines, Boeing, and British Airways have...