As with most things that businesses do, the reason for
using restructuring is to maximize profits. Restructuring is seen as a way to make a
business run more efficiently and, thereby, make more
money.
In a restructuring, a firm generally takes actions
that lead to the loss of jobs. It may sell off or simply close down parts of its
operation that are not making money or are not part of its core competency. It may
increase the amount of automation that is used to make its goods and services. It may
work to streamline its operations.
In all of these cases,
it is likely that jobs will be lost as operations are closed or become more efficient.
This is seen as the price that must be paid in order for a firm to remain
competitive.
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