How do large Australian and Swiss banks implement downsizing?

Abstract

AbstractLarge Australian and Swiss banks have been trimming their workforces since the mid-1990s. With further rounds of downsizing activities predicted, this study sought to identify, examine, and compare the adopted organizational downsizing implementation strategies. The primary purpose of this cross-cultural study was to determine how large Australian and Swiss banks implemented downsizing in their most recent endeavors. The research has revealed three key findings. First, Australian banks primarily adopted workforce reduction strategies, whereas Swiss banks employed a mixture of organization redesign, workforce reduction, and systemic strategies. Second, Australian banks had considerable depth in their downsizing, whereas Swiss banks had more breadth in their overall strategies. Third, Australian banks favored reorientation approaches, whereas Swiss banks embraced reinforcement approaches. It remains unclear as to why large Australian and Swiss banks differed in the selection of implementation strategies and why they diverged in their overall approaches to downsizing. Further research is required to explore aspects that are likely to influence the adoption of downsizing strategies in both Australia and Switzerland.