Threat of future layoffs, self-esteem, and survivors' reactions: Evidence from the laboratory and the field

Abstract

Layoffs are a key aspect of many corporate restructurings, especially in declining organizations. The present studies sought to identify some of the factors that affect the impact of layoffs on the people who remain with the organization: the survivors. Consistent results emerged across laboratory and field settings: in response to the perceived threat of further layoffs, survivors low in trait self-esteem were more likely than their high self-esteem counterparts to: (1) feel worried, and (2) translate their feelings of worry into increased work motivation. Theoretical and practical implications are discussed.