Network Destruction: The Structural Implications of Downsizing

Abstract

Downsizing disrupts existing social networks in organizations. Layoff survivors' reactions to losses of both friends and coworkers in similar structural positions (structural equivalents) are examined here. A field study conducted in a consumer electronics firm revealed negative reactions to the loss of friends and positive reactions to the loss of coworkers in similar structural positions. The loss of friends weakened survivors' network centrality, but the loss of structural equivalents benefited network position and increased satisfaction with promotion opportunities.