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An Analysis Of The Restructuring Of Corporate America, Chanh Q. Do

Honors Capstones

During the past decade, numerous American companies have restructured their operations in an attempt to remain competitive in a global marketplace. This thesis focuses on corporate restructurings that involve a substantial reduction in a firm's labor force. A restructuring is defined as a reduction of five percent or more in a firm's labor force. This thesis addresses two questions relevant to firm restructuring: 1.) what motivates the firms to restructure their operations 2.) what happens to a firm's performance following a restructuring. The results of the analysis indicate that firms that have declining profitability ratios that fall below industry averages …