What are the effect and benefit for downsizing?

Reducing the number of employees is downsizing, there are both positive and negative effects for the company as well as the employees. If the downsizing is done correctly it can get rid of the non-performing and nusiance employees which will profit the company, the same time it will help the other employees as well. On the other hand, if downsizing is not performed without the right details it might end up closing the company or costing more to rehire new employees.

It's create the lot of pressure on Employee for work cause fatigue and some times clashes with other employees