Downsizing at Paltel: Take It and Leave It

Abstract

This case demonstrates not only the technical but also the human aspect of the downsizing process. Paltel was faced with a situation where downsizing was its only option. This case explores the planning and implementation of the downsizing process at Paltel. The degree to which Paltel considered the impact of this decision on employees exemplifies how employee-oriented the company was. This consideration played a central role in how the downsizing process was executed. Also demonstrated in this case are the manner in which the circumstances were communicated to Paltel’s stakeholders, namely employees and the labor union and how this impacted their reaction to the situation. Paltel showed how managing stakeholder relationships and bringing key stakeholders on board with management contributed to the success of this process.