Attrition

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DEFINITION of 'Attrition'

The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry.

INVESTOPEDIA EXPLAINS 'Attrition'

This type of reduction in staff is one way a company can decrease labor costs: the company simply waits for its employees to leave and freezes hiring. Such a method contrasts the more severe labor-reduction techniques, such as mass layoffs. Waiting for attrition is usually better for company morale.

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