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Abstract: This abridged version of the case is about retrenchment forced upon an institution--a premier specialty hospital--whose staff had thought itself virtually immune from economic pressures. A battle is joined specifically as a result of the decision by a new vice-president for nursing that changes staffing patterns in the hospital operating rooms. When that decision leads the new vice-president to ask her handpicked new director of operating room nursing to lay off employees, the process shocks the hospital. The case is designed to provide a vehicle for scrutinizing organizational change needs and the implementation, by management, of such changes.