AbstractLayoffs, often called downsizing, describe the process in which companies temporarily or indefinitely remove a certain number of employees from their payroll. The reasons why companies downsize are related to dramatic changes occurring in the organization's environment. Globalization, the breakdown of trade barriers between nations, and the emergence of technology and automation have also made it necessary for companies to scale. For companies to practice effective downsizing, they must follow the following steps: training, reinforcing company goals and values, honesty and dignity at all times, planning and communication. In addition to the steps described above, there are other important points to consider when downsizing, including establishing a clear vision and goals, managing the transition effectively, planning, intuition, teamwork, compassion and skills. Below I will use two best practices, the Japanese approach and the Taiwanese company, to describe the best way to carry out layoffs and downsizing. Introduction Facing the threat of job loss and seeing others lose their jobs can be a traumatic and bitter experience. This is one reason why many excellent companies do everything they can to avoid layoffs. However, even the most employee-friendly companies can face difficult economic conditions by reducing their workforce. Companies must therefore ensure that they develop adequate and well-thought-out plans before implementing the downsizing and layoff process. Layoffs and DownsizingLayoffs, often called downsizing, describe the process in which companies temporarily or indefinitely remove a certain number of employees from their payroll. The overall purpose of this practice is to reduce headcount...... half of paper ......ventec Corp. chose to reduce personnel costs by moving its assembly lines from Taiwan to China to remain competitive . With careful planning, Inventec Corp. has received few complaints and protests when downsizing and layoffs occur. Conclusion With the current global economic crisis, companies are increasingly turning to downsizing and layoffs to maintain their survival and ability to compete in the global economy. This has resulted in decreased employee morale, productivity, loyalty and commitment. Both “survivors” and displaced workers also experience tremendous emotional and psychological trauma. Companies must therefore ensure that they develop adequate and well-thought-out plans before implementing the downsizing process and, more importantly, after the downsizing process has been completed to address these challenges..