Redundancy refers to the condition when the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise or superfluous. It is akin to retrenchment, which is another form of downsizing. There is, however, a crucial distinction — serious business losses is indispensable in retrenchment. Even if a business is doing well, an employer can still validly dismiss an employee from the service due to redundancy if that employee’s position has already become in excess of what the employer’s enterprise requires.