Discuss some potential problems with downsizing as an organization's first response to a need to cut labor costs

1. Morale

2. Production changes.

Explanation:

Morale: when a company goes the downsizing path in cutting labor cost, this can lead to a loss in morale as the remaining staff are not sure of their fates and due to how fast rumors travel this days this can affect their productivity.

Production changes: when staffs are downsize to save labor cost production would also be affected, less staff would results in less output as the number of man power has being reduced.

answer; at prices that violate government price regulations;