American Car: Salaried Headcount Reduction

The head of salaried personnel at a large automotive manufacturer is faced with the unenviable task of implementing head count reductions. Several options are available including voluntary leave of absence, contract position reductions and early retirement packages. She must decide the best method to carry out the reductions and how to keep the targeted reductions fair to all employees at the company. Supplemental case Janet Michaels at American Car, product 9B02C054 discusses her decision.