What is an involuntary reduction in workforce typically characterized by?

An involuntary reduction in workforce is typically characterized by company-driven decisions that result in layoffs, which aligns with the context of organizational changes and restructuring. This type of workforce reduction is not initiated by employees but rather triggered by the company’s need to decrease its staff for various reasons, such as financial constraints, changes in market demand, or overall strategic realignment.

Involuntary layoffs usually stem from a company's decision to cut costs or improve efficiency, making option B the correct choice. This can occur during periods of poor performance, mergers, acquisitions, or shifts in business focus where certain roles are deemed redundant or unnecessary.

The other options refer to different circumstances: employee-initiated resignations involve voluntary actions taken by individuals; voluntary departures indicate employee choices to leave, which do not fall under involuntary reductions; and contract employee terminations typically refer to the conclusion of specific project-based roles rather than a broad organizational workforce reduction.