This research paper aims to explore the unique challenges faced by Human Resource Management (HRM) in unprofitable companies and identify potential strategies to enhance HRM effectiveness in these organizations. Unprofitable companies often struggle with financial constraints, declining market share, low employee morale, and talent retention issues, which significantly impact their HRM practices and overall organizational performance. These challenges include limited budgets for HR initiatives, difficulties in attracting and retaining high-quality talent, and managing employee motivation during times of uncertainty and restructuring. Additionally, the study examines the impact of these challenges on crucial HR metrics, such as employee engagement, turnover rates, and productivity. To address these challenges, this paper proposes a comprehensive framework for HRM strategies in unprofitable companies. The framework emphasizes the importance of aligning HR practices with the company's overall strategic goals, adopting innovative approaches to talent management, and enhancing employee engagement through effective communication and motivation techniques. The findings of this research contribute to the understanding of HRM in unprofitable companies by highlighting the distinctive challenges faced and providing practical insights for HR professionals offering guidance on strategic HR interventions that can help revitalize organizational performance, foster employee resilience, and contribute to the long-term sustainability of unprofitable companies.