A downsizing strategy implemented at Finder Corp. has resulted in negative stock returns and lower profitability following the layoffs. Which statement best explains the reason for these negative results at Finder Corp.?

When labor costs fall after a downsizing, sales per employee also tend to fall.

Downsizing demands the HR department have a third$-$party vendor provide services, which results in lower revenues.

The HRM of a firm must provide downsized employees with multiple stock options.

Downsizing conducts a complete review of the organization's critical work processes, which results in heavy expenditures.

Downsizing tends to eliminate good performers instead of poor performers first.