This study sought to analyse the effectiveness of downsizing in enhancing productivity in companies between 2009 and 2012, a case study of Air Zimbabwe Holdings. The study sought used the descriptive survey method with a population of 30 respondents. A stratified random sampling was employed for the research subjects of Air Zimbabwe Holdings employees. Questionnaires were used as research instruments. Statistical methods like tables were used for the data analysis. The researchers visited Joshua Mqabuko Airport in order to make observations and determine the level of activity. The study aimed among other things to establish the effectiveness of downsizing exercise in enhancing productivity in Air Zimbabwe Holdings in particular. Consistent with the review of literature, the study found that downsizing is motivated by economic, strategic and technological reasons. The positive outcomes are increased profitability, improved productivity, better strategic networks and leaner structures. Downsizing exercise was meant to increase productivity and improve services in Air Zimbabwe Holdings. However, downsizing has also brought in both negative and positive impact to the operations and service delivery by the company. On the other hand, the adverse effects include reduce staff morale, hampered innovative capacity, bad corporate reputation and absenteeism.However, recommendations were also suggested, instead of downsizing, companies may increase sales efforts by capturing new market segments. Investing on machinery like buying more flights than channelling more funds towards downsizing exercise. The management should be in constant touch with workers to boost morale.
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