Home › Forums › Budgeting › There Are No Savings from Reorganization, Only Costs › 259267
Brian S. Luoto
Depends. Of course there are costs to reorganize which rarely get captured until after the fact. The savings can only come from downsizing, either with personnel layoffs or reductions in pay. You are suppose to have savings by being more efficient, but in larger organizations and major reorgs, cost goes up faster than in smaller groups.