Question 6 asked managers if taking the company private saved all
or most employee jobs. Results showed that cost-cutting moves resulted
in some employees losing their jobs while some managers were cut
following the buyout. None of the respondents said the company saved
all jobs following the buyout (see tab. 7.6 ). This is one of the few times
when survey results and national perception of buyout characteristics
matched. Theorists call for preserving most management jobs while
cutting line employees to revamp the company through cost reduction
in order to return it to a growth stage of the life-cycle.

The survey also provides a profile of the typical manager of a company
taken private through buyout as well as some information about buyout
targets. The results support the description of the new entrepreneur,
especially in regard to gender, age, and compensation level.

Restructuring has been taking place within many of America's large
corporations. Given such names as demassing and downsizing, this
restructuring has resulted in the loss of many jobs. Most companies
which move from public to private have lost employees and managers.
The survey shows that about 72 percent of those companies which re-
sponded have laid off some of their employees and about 35 percent
have laid off some of their managers. In the past two years close to a
half-million white-collar workers have left their jobs--some by way of
hefty separation incentives, some by dismissal.

Regardless of why restructuring and cutbacks are taking place, one
thing seems to be evident: "such cost-cutting programs are changing

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