A reduction in workforce (RIF) is a process in which a company reduces the number of employees. This can be done through layoffs, early retirements, or by incentivizing staff resignations. A RIF is often implemented in response to changing economic outlooks, financial troubles, or corporate restructuring as the result of an M&A or liquidation event.
RIFs are not always an indicator that a company is performing poorly. Many large successful companies have implemented major reductions in workforce in recent history. Some examples include:
RIF is a permanent decrease in the number of employees within a company or organization through redundancy or laying off.