Do Companies Let Go of the Right People After a Merger?

Research co-authored by Yale SOM’s Prof. Heather Tookes and Emmanuel Yimfor, an assistant professor of finance at the University of Michigan’s Ross School of Business, unearths whether companies usually let go of the right employees after a merger.

Prof. Tookes talks about how M&A creates value and mentions the potential cost reduction from downsizing the labor force. The important question here is whether companies are letting go of the right employees and keeping the valuable ones as part of the team. In her research, she mentions that there are points to consider for the employees as well as the companies.