A Multi-stakeholder Study on the Effect of Layoffs on Separated Employees, Survivors and Organizations: What Needs to be Done?

Abstract

Organizations attempt to keep pace with the dynamic, ever-changing environment through technology up-gradation, human resource restructuring, diversification of product or service lines, and other similar actions. In most cases, these actions have taken the form of organizational downsizing, leading to the loss of jobs. The primary purpose of this study is to propose an approach that organizations may adopt against the cascading impact of layoffs on separated employees (victims), associates and co-workers (survivors). Online platforms were used for the collection of data. A total of 864 statements were analysed. Sentiment analysis was conducted using the SEMRUSH software. Miles and Huberman’s (1994, Qualitative data analysis: An expanded sourcebook) method was used to categorize the data obtained into meaningful categories to provide results that would support the research objectives. The analysis shows a considerable cascading psychological impact on the human resource ecosystem. This article puts forward the causal model, capturing the interplay of the effects of the stakeholders on one another and their social well-being. Further, the article proposes that the downsizing cycle be constituted such that it minimizes the impact of layoffs. Extant research on job loss has mostly considered one or two stakeholders at a time. We have attempted a multi-stakeholder approach. The study also suggests changes in the human resource (HR) cycle that organizations must examine to mitigate the adverse effects of layoffs.