Question by kaytee159: Why mergers and acquisitions often lead to the consolidation of positions or reductions in work force.?
Describe why mergers and acquisitions often lead to the consolidation of positions or reductions in work force.
Best answer:
Answer by golferwhoworks
you often have 2 or more people doing the same types of work and once merged then they do not need as large of a staff to handle day to day operations
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In addition to golfer’s input, some M&A also results in re-focusing of marketing and sales into core competencies, possibly causing entire divisions to be “let go” or reorganized into remaining priority areas. Another factor is the management power changes in M&A could surface rivalries, incompetencies, and other ugly artifacts previously overlooked by cronies who are no longer in position to protect such unproductive behaviors.