Reduction in Workforce (RIF)
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:
- General Motors: In 2019, GM announced plans to cut 14,000 jobs and close several factories in North America.
- Boeing: In 2020, due to the COVID-19 pandemic, the company announced plans to cut 16,000 jobs.
- Yahoo: In 2016, the company announced plans to cut 15% of its workforce, or about 2,000 jobs.
- Ford: In 2018 the company cut 25,000 jobs and closed several factories in Europe.
- Meta: In 2022, the Facebook parent announced plans to reduce headcount by 11,000 employees.