This works for small companies that are scaling up, but fails when larger orgs need to scale down / reduce expenses. Particularly: > Inform the teams affected

This works for small companies that are scaling up, but fails when larger orgs need to scale down / reduce expenses. Particularly: > Inform the teams affected that the new objectives create an opportunity for them to re-organize to be more effective at achieving these objectives. In the US, reduction in force requires companies to file a WARN statement with that companies state. There's a few other legal requirements as well: almost all of them require c-level staff to absolutely say nothing to all employees until the day they announce it. If an employee catches wind of a layoff early, there could be a leak to investors, which leads to insider trading and a whole host of other legal battles. As a result, CEO's and other decision makers typically cannot "inform the teams affected" until all the details have been set in stone.