Downsized and Out
Angie G50
Moisés Naím / Carnegie Endowment for International Peace
In 1997, the board of directors of the Stanley Works, a Connecticut tool company, lured its new chief executive, John M. Trani, away from General Electric with a compensation package that was two or three times those given to any of his predecessors since its founding in 1873. Like many of his peers at other U.S. companies at the time, Trani closed plants, cut costs, downsized and outsourced the company's operations. Six years later, 5,500 Stanley employees had lost their jobs.
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