Which of the following is a potential disadvantage of downsizing?

• A. The remaining employees become overworked
• B. It reduces staff costs
• C. It improves morale
• D. It increases productivity

Answer: (A)

Downsizing cuts the number of people, but the work doesn’t disappear—it has to be taken on by those who stay. When some positions are eliminated, the remaining employees often take on extra duties and longer hours, which can lead to fatigue, mistakes, and burnout. This increased workload can lower morale and engagement and may even reduce overall productivity over time as stress and turnover rise. So while reducing staff can lower payroll costs, the downside that typically accompanies downsizing is the overburdening of the remaining workforce. The other outcomes listed—cost savings as a benefit, improved morale, or higher productivity—don’t align with the common adverse effects of downsizing.