Problems with Retrenchment

• Damage to the employee morale due to job losses can be a problem with retrenchment
• Damage to relationships with customers and suppliers if they are affected by reductions in the products available for sale or by reduction in the purchase of supplies can be a problem with Retrenchment
• General reputation damage with stakeholders adversely affected can be a problem with retrenchment
• Loss of corporate knowledge when experienced employees leave can be a problem with retrenchment