As part of its reorganization, company X created five new positions within the company. However, after the reorganization was complete, company X had fewer employees than before the reorganization.
Which one of the following, if true, would best explain the result described above?
To determine which option best explains why company X had fewer employees after creating new positions, we need to evaluate each option individually.
A) The five new positions required fewer employees than the positions they replaced.
- This option suggests that the new positions were more efficient or required less manpower. However, it doesn't provide a direct explanation as to why the overall number of employees decreased.
B) Some employees left the company after learning about the impending reorganization.
- This option suggests that employees left the company due to the reorganization. If several employees decided to leave after hearing about the changes, it could explain why the overall number of employees decreased.
C) The reorganization led to layoffs of some existing employees.
- This option implies that some employees may have lost their jobs as a result of the reorganization. If the number of employees terminated due to the changes was greater than the number of new positions created, it would explain why the overall number of employees decreased.
D) Company X outsourced certain functions to external contractors.
- This option suggests that Company X decided to outsource specific tasks or functions to external contractors instead of hiring new employees. By doing so, the company could reduce its overall number of employees even though new positions were created.
E) The reorganization shifted some employees into new roles, opening up vacancies in their previous positions.
- This option implies that some existing employees were moved into different roles as part of the reorganization. If these employees left vacant positions that were not replaced, it would explain why the overall number of employees decreased.
Upon evaluating each option, option C, "The reorganization led to layoffs of some existing employees," best explains why company X had fewer employees after creating new positions. This option directly states that employees were laid off as a result of the reorganization, which resulted in a decrease in the overall number of employees.