** Why downsizing limits a struggling company’s potential gain**

Downsizing in companies facing financial pressures often proves counterproductive as it can lead to the loss of indispensable employees, creating survivor guilt and anxiety among remaining staff. This atmosphere discourages innovation and proactive efforts to overcome crises, with employees prioritizing job security over creative solutions. When companies focus solely on short-term financial metrics, they jeopardize their long-term viability, increasing stress levels and harming the balance of mental, physical, and financial health. Ultimately, such strategies can lead to failure, even if immediate profits seem attainable.