A third of businesses that downsized since 1994 wound up restoring some of the eliminated positions, according to a study by career services firm Lee Hecht Harrison. A down economy has employers cutting back on less-profitable areas and focusing on moneymaking efforts, such as sales or new business development. Copper Mountain Networks, a broadband access equipment provider based in Palo Alto, Calif., recently cut more than 100 workers in operations and is hiring about 35 employees in research and development. Building talent pool. As business becomes more competitive in a downturn, some firms are weeding out lower performers so they can bring in proven talent.
Competition remains strong for workers with specific expertise, such as engineering.
Companies that have downsized may still recruit in-demand talent.