Downsizing has limits, companies find

04/24/2013 | Time.com

Companies looking to improve efficiency are finding that staff reductions can backfire in the form of customer dissatisfaction and lower sales, Brad Tuttle writes. Red Lobster this month reversed a move to increase the number of tables per server after some employees and guests complained. Recent troubles at Wal-Mart, McDonald's and J.C. Penney can also be linked to staff reductions, Tuttle writes.

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