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Merger happen when a business is in the verge of a collapse. So to save the company it goes into a merger with a healthy company It is better that way instead for the business to fall
In some cases yes, this usually happens, especially when the main company feel most of the workers are not competent enough to work in the new company. But this is not always the case though. There are times where workers are not laid off.I have noticed this mergers thing tt brings about significant layoff of workers. you are right the new organization might not be able to absorb staff or all the staff from the new one