Caractéristiques comptables et financières des entreprises qui réduisent leur effectif salarié

The objective of our research is to study the link between downsizing and the economic and financial performance of the company. A study of 141 French quoted companies, who announced redundancies over the years 1997, 1998 and 1999, shows that staff reductions take place in companies whose past performance is relatively poor and who show a high rate of debt and a low profit margin. In addition, the performance of these companies over the three years following the decision of staff reduction varies according to the initial objective for downsizing and how added value is split between employees and shareholders.