Week 45: Leading through Downsizing

What lessons can we learn from the drawdown in Afghanistan in 2012 to 2014 versus 2021?

Downsizing can be one of the most challenging responsibilities for any leader, as it often signifies not only financial difficulty but also impacts morale and job security for employees. However, downsizing can offer strategic benefits when done carefully, acting as a necessary tool for companies to regain focus, reduce costs, and foster long-term sustainability. Leaders who navigate downsizing successfully help to position the organization for a leaner, more competitive future, despite the difficult nature of this process. This article examines the advantages of downsizing when strategically implemented and offers insight into how leaders can manage downsizing without seeing it as a defeat, preserving morale, credibility, and resilience.