Abstract

The productivity and morale of employees who survive layoffs are likely to have a major impact on the future performance of the corporation. The most important factors that affect survivors' reactions are: the fairness of the layoff and how it was handled; and changes within the organization that often accompany layoffs, such as job insecurity, career prospects, quantity and quality of new job responsibilities, and information about the reactions of one's fellow survivors. This article offers a series of steps that managers can take before, during, and after the layoffs to maximize the productivity and morale of survivors.