Purpose – This paper investigates the effectiveness of the downsizing
strategy when applied to the Telefónica case.
Design/methodology/approach – By using the Event Study method,
we present the relationship between downsizing strategies and results.
Statistical significance of results was analyzed using t-statistics analysis.
Findings – Results are significant, proving that the downsizing strategy
brought about greater profitability and better funding, leveraging
company market values.
Originality/value – Results indicate that downsizing is a strategy
alternative that allows for better adaptation, if carried out proactively
and associated to changes that are necessary within organizational
structure and processes.
If a paper is approved for publication, its copyright has to be transferred by the author(s) to the Review of Business Management – RBGN.
Accordingly, authors are REQUIRED to send RBGN a duly completed and signed Copyright Transfer Form. Please refer to the following template: [Copyright Transfer]
The conditions set out by the Copyright Transfer Form state that the Review of Business Management – RBGN owns, free of charge and permanently, the copyright of the papers it publishes. Although the authors are required to sign the Copyright Transfer Form, RBGN allows authors to hold and use their own copyright without restrictions.
The texts published by RBGN are the sole responsibility of their authors.
The review has adopted the CC-BY Creative Commons Attribution 4.0 allowing redistribution and reuse of papers on condition that the authorship is properly credited.