Downsizing and social cohesion: the case of downsizing survivors

Area of Science:

• Organizational Psychology
• Public Health
• Sociology

Background:

• Organizational downsizing became common in the U.S. economy during the 1980s and 1990s.
• Existing public health research acknowledges the negative health impacts of unemployment and job loss.
• Limited attention has been given to the health consequences for employees who remain in organizations after downsizing.

Purpose of the Study:

• To examine the social and psychological consequences of organizational downsizing on employees who survive job cuts.
• To identify how downsizing impacts the work environment and employee experiences in remaining firms.
• To explore the role of social cohesion loss in survivor responses to downsizing.

Main Methods:

• Drawing on research conducted with survivors of downsizing by the U.S. Department of Energy.
• Qualitative and quantitative analysis of survivor experiences and work environment changes.
• Identifying key social and psychological outcomes for remaining employees.

Main Results:

• Downsizing fundamentally destabilizes the work environment and employee experiences.
• Survivors exhibit increased suspicion, conflict, demoralization, sadness, anxiety, and disorientation.
• The loss of social cohesion, rather than downsizing exposure itself, significantly influences survivor responses.

Conclusions:

• The trauma of downsizing for survivors is linked to the erosion of social cohesion.
• Addressing survivor well-being necessitates fostering a more inclusive and participatory workplace governance.
• Future interventions should focus on rebuilding trust and social connections within downsized organizations.