Which term refers to the restructuring of organizations that often leads to job cuts?

The term that refers to the restructuring of organizations that often leads to job cuts is downsizing. Downsizing typically involves reducing the number of employees within an organization to improve efficiency, reduce costs, or respond to changes in the market or economic conditions. This process can be part of a broader strategy to streamline operations and improve productivity, which often results in layoffs or job eliminations.

Understanding this term is important in the context of organizational management and human resource practices, as it reflects the challenges that companies may face when adapting to changes. In contrast, options like outsourcing involve contracting external organizations to handle certain business functions instead of reducing the workforce directly. Reskilling focuses on training existing employees to take on new roles, aiming to improve workforce capabilities rather than reducing headcount. Business transformation is a broader concept that encompasses significant changes in business processes, often without a direct focus on employment reduction. Thus, downsizing is specifically associated with the reduction in staff and the structural changes that accompany that process.