Reduction can involve the reduction of work hours, days, overtime, pay levels, pay increases, benefits, new hires and
holidays, and also the increased use of attrition, unpaid leave, assignment for local volunteer work, sabbaticals, and contract employees and outsourcing. From these activities firms can reduce their costs and existing employees can retain their jobs. In contrast, removal refers to the use of layoffs or other measures that result in permanent job loss. Firms have a great deal of choice in how they shrink their workforces, but their choices are not unlimited. For multinationals, decisions about which HR actions to use must reflect the concerns of various unions, governmental regulations, cultural norms and corporate values.