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

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  • Gandolfi, Franco
  • Hansson, Magnus

Abstract

After 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.

Suggested Citation

  • Gandolfi, Franco & Hansson, Magnus, 2010. "Reduction-in-force (RIF) – New developments and a brief historical analysis of a business strategy," Journal of Management & Organization, Cambridge University Press, vol. 16(5), pages 727-743, November.
    • Handle: RePEc:cup:jomorg:v:16:y:2010:i:05:p:727-743_00
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    Cited by:

    1. Franco GANDOLFI & Magnus HANSSON, 2015. "A Global Perspective on the Non-Financial Consequences of Downsizing," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(2), pages 185-204, May.

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