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Organizational Restructuring

Organizational Restructuring is when a company’s business model has changed due to internal or external factors and needs to adapt in order to survive and ultimately grow. This may result in a downsize, upsize or reshuffle of staffing requirement.

When a business eliminates layers of management during its restructuring, communication and decision-making often improve. Simplifying management reorders the organizational hierarchy of a company, opening the lines of communication and removing barriers to productivity.

There are so many reasons for business restructuring as shown bellow.

  • To reduce costs.
  • To concentrate on key products or accounts.
  • To incorporate new technology.
  • To make better use of talent.
  • To improve competitive advantage.
  • To spin off a subsidiary company.
  • To merge with another company.
  • To decrease or consolidate debt.

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