Final answer:
Organizations typically reduce costs by laying off workers rather than hiring more when adapting to economic changes such as a recession. Mergers and acquisitions can also lead to staff reductions due to service duplications. Companies have multiple strategies to manage their costs and workforce according to market demands.
Step-by-step explanation:
When attempting to reduce costs in response to changes such as an economic downturn, organizations often lay off workers rather than hiring more staff. This is because hiring entails costs associated with recruitment, training, and integrating new employees into the company culture. During recessions, firms may choose to retain employees, as letting them go can risk losing experienced staff that would be needed if the market recovers quickly. Conversely, when companies engage in mergers or acquisitions, they typically experience a duplication of services which often leads to a reduction of staff to eliminate redundancies.
Furthermore, bureaus need to make careful investments in human capital, training, and development of employees. To maintain profitability, businesses might keep wages static during times of high unemployment. Companies also possess the flexibility to expand or reduce production, open or close facilities, and adjust their workforce in response to economic conditions. All of these strategies are part of an organization's measures to adapt and manage costs effectively.