Tips for Downsizing your Business during Pandemic

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Downsizing is a good business practice typically related to economic declines and business failures. While it is usually used in periods of stress and decrease in revenue. It is also a way to build smaller and more efficient companies.

The COVID-19 virus is forcing businesses to make changes. Certain companies got permits to operate because they are vital businesses.  While others might reduce hours or their workforce to limit the spread of this new virus. In addition, many employees can work from home.

It is required for businesses to consider company downsizing. Also referred to as “organizational downsizing.”  This is a modification to the organizational structure to decrease costs and increase efficiency. In the long term, it will also help employees to increase productivity.

Reduce the Workforce

When we talk about downsizing, the first idea that comes to mind is reducing the team without disturbing your productivity. Before you had to reduce your workforce, you should be focused on ensuring that your employees had a productive work environment. Likewise, when you’ve reduced the working team, you’re likely more focused on positive actions that keep employees happy.

Reduce Hours of Work and Salary before Downsizing

During this pandemic, Most businesses are forced to reconsider the management of their human resources.  Owners want to ensure their business’s longevity and sustainable growth. This is when the employer has the right to negotiate with employees to alter the terms of their labor agreements, including reducing wages or working time. So naturally, any modifications to a labor contract must be in writing.

In conclusion, if you want to downsize your business, reducing work hours with salary is the best option. Your employees will be happy with this strategy and work more efficiently during this time.

Implement a Remote work policy

As the virus spreads, it affects the economy, society, and the business sector. What to do to limit the impact of the virus on businesses?

Businesses have a policy of remote working, and this policy could affect office real property. Daily expenses can be cut down by remote work, and employees work efficiently. These pandemic days told us employees work more productively from home than from the office. Now different companies are shifting their office-based work to home-based. And this is going to be a smart move.

The crisis will end, but ill-judged decisions or actions of company managers during a crisis could negatively affect the business. That’s why, when you are downsizing your business during covid or anything else, always think about your employees.  And the impact of your decision on their lives. A good company manager always thinks about their employees.

Freeze Hiring

Another option to reduce the size of your business is to put in place an employment freeze. Since the pandemic started, almost every company has frozen hiring, which is now a common thing.

Instead of firing your old employees, freeze hiring for some time and work with existing employees. This will be beneficial in saving cost and company reputation. However, it’s discovered to be the most detrimental to the company in the long run. So, when your business is in a stable position, start hiring and growing your business.

Use Storage unit

Storage for businesses is an excellent method to store office belongings that you do not need. Storage Units help your business stay organized and efficient.  You should use a storage unit if your business has seen rapid growth or is being affected by the economic downturn.  In addition, the storage units will make it easier for you to keep your possessions. And offer a range of options to fit every size company.

You can use storage in Worcester to store your office belongings. These storage companies provide security to your belongings and can access them whenever you need them.


All these methods are to downsize your business until you are not in a stable position. For example, your business is experiencing growth after reducing its size. In that case, there could be a time when it’s beneficial to stop the downsizing process. Now you can hire new employees, and then resume operations as they were. You should be clear on the terms of any downsizing adjustments. Maintain contact with employees to tell them about the phase.


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