Employees also are expected to take on more job functions. For example, some insurers are combining marketing and underwriting departments. Such multitasked jobs pay more, but because time is squeezed, productivity is lower. Upper Echelons Mergers and acquisitions have affected the top level of management the most, recruiters say. Someone has to go when there are two chief executive officers and two chief operating officers in one company.
Most companies do a poor job of downsizing.
They are saving money by chopping off at the top, rather than firing 20 people at the bottom. Everyone is in an expense-control mode, and even survivors are getting nervous, Van Leer said. In some post-merger situations, companies are having both parties interviewing for the same position, Nixon said. In some cases, entire levels of management are eliminated based on cost factors. This has led to a whole management level who have been groomed for upper-level positions who are being let go, Nixon said.