Labour shedding, also known as downsizing or workforce reduction, refers to the practice of reducing the size of a company's workforce in order to cut costs or improve efficiency. Labour shedding can involve a variety of measures, such as layoffs, voluntary redundancy, or early retirement incentives. It is often used as a way for companies to respond to changes in market conditions, such as an economic recession, or to restructure their operations in response to technological changes or increased competition. Companies may also use other strategies, such as retraining or redeployment, to manage their workforce in times of change.