Corporate Downsizing and Profitability in Canada

Three competing models of downsizing—the “rational,” asymmetrical/hysteretic, and institutional approaches—were tested, using data from large Canadian companies. Although none of the approaches was fully supported, it was noted that there was no consistent relationship between past profit and propensity to downsize, nor was there any consistent relationship between extent of downsizing and future profit. Résumé l'auteur examine trois modèles...