Which statement describes a common driver for downsizing?

Which statement describes a common driver for downsizing?

• A. Expanding product lines by hiring more staff
• B. Budget reductions and technology improvements that allow fewer workers to perform the same amount of work
• C. Increasing market competition by outsourcing
• D. Improving worker morale through more benefits

Answer: (B)

Downsizing is driven by a need to cut costs and boost efficiency. The statement that emphasizes budget reductions and technology improvements that let fewer workers handle the same workload best captures this idea. When budgets tighten, organizations seek ways to reduce labor costs, and advances in automation, software, and streamlined processes often allow a smaller workforce to achieve the same output. The other options don’t describe the typical push to reduce staffing: hiring more to expand product lines increases headcount; outsourcing can be a cost tactic but doesn’t itself describe lowering internal staff; and improving morale with more benefits focuses on retention rather than reducing the workforce.

Downsizing is driven by a need to cut costs and boost efficiency. The statement that emphasizes budget reductions and technology improvements that let fewer workers handle the same workload best captures this idea. When budgets tighten, organizations seek ways to reduce labor costs, and advances in automation, software, and streamlined processes often allow a smaller workforce to achieve the same output. The other options don’t describe the typical push to reduce staffing: hiring more to expand product lines increases headcount; outsourcing can be a cost tactic but doesn’t itself describe lowering internal staff; and improving morale with more benefits focuses on retention rather than reducing the workforce.