During the planned economy period, state-owned enterprises were large and complete, small and complete, self-contained and intact; As a result, there are many redundant staff, heavy burdens and heavy burdens. This kind of attitude, participating in market competition is obviously congenital deficiency, so how to solve this problem? It is a good idea to "reduce staff and increase efficiency", and the key here is how to reduce staff. As far as I know, some enterprises lay off some employees and return to China, and then give them a certain living allowance to improve their efficiency. In other words, I think it is not advisable to increase efficiency by reducing the necessary salary expenditure. Being an entrepreneur is a sign of incompetence. The objective purpose of establishing, developing and expanding enterprises is to create more employment opportunities for society. Layoff is an improvement of efficiency for enterprises, but this improvement of efficiency is based on reducing the income of some employees and shifting the burden of enterprises to the society, thus causing social instability, which is not in line with the purpose of "reducing staff and increasing efficiency". To fully understand "reducing staff and increasing efficiency", reducing staff must increase efficiency. "downsizing" means cutting people who have no jobs and nothing to do from their original posts to engage in new occupations. Here, we should give full play to two enthusiasm. First, as an enterprise, we should dig canals before releasing water, actively expand employment opportunities and resettle surplus personnel; Second, widely mobilize the masses to cross the sea, show their abilities and seek employment opportunities.