Downsizing without downgrading: learning how firms manage their survivors

Provides a literature synthesis on the impact of downsizing on the survivor s and examines the experiences of three large Canadian companies. Results c ofirm trends that are generally reported in the literature regarding the ne gative aspects of downsizing. It suggests that where the company had a clea r strategy to implement the downsizing, which included scheduling and a wel l-specified operational plan, the impact on those dismissed as well as the survivors was buffered. The use of a downsizing plan also mitigated the neg ative responses on behalf of the remaining personnel. On the other hand, wh en the company adopts a reactive approach towards the downsizing process, n umerous problems associated with the survivors are reported. The firm that applied seniority to layoff decisions received more favorable responses tha n firms that used criteria other than seniority.