The Downside of Downsizing

With the help of data obtained from open-endedinterviews conducted with the various stakeholders indownsizing operations and applied within a clinicalframework, individual reaction patterns are explored in the victims, the survivors (those stayingwith a company after layoffs), and theexecutioners (those responsible for theimplementation of downsizing). Special emphasis is givento the reactions of the executives implementing the downsizingoperation. Among this group of people, a number of waysof coping can be discerned, described ascompulsive/ritualistic, abrasive, dissociative,alexithymic/anhedonic, and depressive. The article ends with a numberof practical recommendations about how to facilitate thedownsizing process. From the interviews conducted, itappears that downsizing, in the more narrow sense of the word, can be a quite destructiveprocess. Reframing the concept so that downsizing isviewed as a continuous process of corporatetransformation and change, a way to plan for thecontinuity of the organization, seems to be a moreconstructive approach.