Workforce reduction refers to the process of decreasing the number of employees in a company, often due to financial challenges, restructuring, or changes in business strategy. This can involve layoffs, voluntary separations, or early retirement offers. The goal is typically to cut costs and improve efficiency. Companies may implement workforce reduction to adapt to market conditions or technological advancements. While it can help stabilize a business, it often leads to challenges such as decreased employee morale and potential loss of valuable skills. Organizations must carefully manage the process to minimize negative impacts on remaining staff and overall productivity.