Downsizing in America

Sociological explanation Downsizing has become a common occurrence in corporations today. “More then half of the fortune 500 corporations have slashed their corporate staffs. Since 1979, over 1.5 million managerial and staff positions have been eliminated.”(Karake 1). Downsizing is an inescapable reality and constant threat in American life during the past decade. There are not many Americans whose life has not been touched or at least threatened by downsizing, often numerous times! At first, firms that were behind …

…should be turned over to outside providers. By outsourcing noncritical functions, a company can leverage its financial resources, share its financial risk, and allow management to concentrate more fully on the core business.(Karake 2) The low skilled workers who receive low wages are the ones most affected by downsizing. Their jobs are being replaced by machines that can either take over their job all together or expedite the process which in return requires less laborers.