Downsizing outcomes: Better a victim than a survivor?

Abstract

Is it better to be laid off when a downsizing initiative is announced? We analyze the outcomes experienced by both victims and survivors involved in a major downsizing program, and present a model of downsizing stress. Results indicate that displaced employees, or “victims,” who secure new employment fare better than survivors. The victims in our study perceive higher levels of control, less stress, and fewer negative job strains than continuing workers, or “survivors.” These results lend credence to suggestions that stress and control are critical factors in understanding employee reactions to downsizing. © 2003 Wiley Periodicals, Inc.