Psychological Impacts of Downsizing Trauma

Abstract

The chapter summarizes research studies as well as case studies from companies worldwide that show how organizational changes followed by downsizing create a traumatic experience for all organization members. The author's focus is on the psychological perspective on traumatic experience by all employees (victims and survivors) and managers whose task is to organize and implement changes in the organization. Based on the literature review, the chapter describes symptoms and psychological effects of organizational change trauma on individuals and the ways to minimize the traumatic effects. The author believes that outplacement and therapeutic approach are effective tools for overcoming the layoff trauma and also send positive signals to employees and to general public.