This is a cross-sectional study consisting of self-administered survey inst
ruments to measure psychological distress and stress-inducing work demands
after 6 months of rumors about an upcoming corporate downsizing event. The
workforce consisted predominantly of white males who were marred, college-e
ducated, and nonsmokers. Higher stress levels were seen among older, more e
ducated workers, who had longer company tenure. Role boundary problems, nox
ious physical environments, and company tenure were retained in the final m
ultivariable model predicting distress level. The ongoing time delay for ma
nagement to implement the threatened layoff and beer rankings for a new job
performance appraisal contributed to a decline in worker solidarity becaus
e of concerns about career and job security. These uncertainties reduced wo
rker productivity and effective teamwork.