Final answer:
Reductions in force are also known as layoffs or downsizing. These strategies are typically used by companies to cope with economic pressures or structural changes, and they can be influenced by labor laws and the desire to retain the best employees.
Step-by-step explanation:
Reductions in force, which lower the number of employees in a workplace, are also known as layoffs or downsizing. In some cases, these strategies are adopted due to economic pressures or the need for restructuring within a company. For example, strict labor laws in France mean that the cost of dismissing employees is high once a company exceeds 49 employees, leading to a higher natural rate of unemployment. Companies often prefer layoffs to cutting wages across the board, because reducing wages could lead to a loss of the most qualified employees, who have better prospects elsewhere, a concept known as the adverse selection of wage cuts.