Costs (financial and otherwise) associated with downsizing that make it a questionable strategy include:

A. Severance pay to compensate for short notice Accrued vacation and sick pay Pension and benefits payouts

B. Low morale and productivity of remaining employees Possible increase in unemployment tax rate Lost sales

C. Potential lawsuits from angry employees Administrative costs of implementing the layoff Damage to organizational and product reputations

D. All of the above (A, B, C)