The first case in the two case series about Dexia Banque International à Luxembourg (Dexia BIL) discusses the crisis Dexia BIL is facing in 2002. The collapse of the dot.com bubble and the consequences of 9/11 for global financial markets has led to drop in revenues, but as the same time Dexia BILs costs had continued to rise. In September 2002 the Board decides to take action. The HR department is asked to reduce the overall headcount by 200 – about 8% of the total workforce. To make this happened is an extremely delicate task for a company which is very visible in the country’s economy and which in its history had never experienced a lay-off. Christian Scharff, then a young and fast-rising HR manager is given the task of proposing specific actions. Firing people was an option he did not like. But what else could he do? Brain-storming with a small task-force he came up with a list of ideas. Which should be on the final list presented to the board?
