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The axe of retrenchment
Addressing the psychological cost of layoffs when it cuts more ways than one
Published Wed, Sep 24, 2025 · 07:00 AM
RETRENCHMENT. Layoffs. Downsizing. Rightsizing.
The language varies, but the outcome is consistently brutal: the termination of employment for strategic, not performance-related reasons. While boards and management focus on operational efficiency and financial optimisation, the human toll of restructuring constitutes a profound and frequently ignored crisis – one carrying significant long-term costs for individuals, organisations and economies alike.
Retrenchment is a double-edged sword, inflicting deep psychological wounds on those receiving the news and those tasked with delivering it.
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