A reduction in force (RIF), coupled with today's inflation and cost of living increases, impacts on school systems. This paper discusses the effects on an urban school system--the Atlanta Public Schools--and offers suggestions to school administrators on moves to make and pitfalls to avoid when faced with RIF. Some topics covered include legal ramifications, due process, teacher tenure, and the role of school boards and administrators. The paper suggests that school boards (1) initiate an RIF policy before it's needed, (2) cut expenses to the bone, (3) clarify the board's position to staff and community, (4) use the news media to publicize policy and administrative regulations, and (5) indicate that alternatives are continuing to be sought. Also listed are 6 pitfalls to avoid and 17 ways to reduce the financial trauma of staff cuts. (Author/LD)