Restructuring: The Hard Truth About Sell-offs Vs. Lay-offs

Companies that sack staff are more likely to go bankrupt or be taken over than those that restructure by divesting under-performing parts of their business, according to new research from the Australian School of Business. Firing staff does not always turn up cost savings or efficiency improvements, and it dents the morale of those left behind and the opinions of shareholders. With lay-offs becoming increasingly popular in Australia – mainly due to the changing nature of the workforce – a rethink may be in order for corporate chiefs as they confront potentially make-or-break decisions.