Revisiting the survivor syndrome: The role of leadership in implementing downsizing

Abstract

This article examines the key strategic and operational aspects of managing downsizing in Barclaycard, a credit card company, and SKF (UK), a bearings manufacturing company. The article begins by briefly reviewing the literature on downsizing; it then presents the data collection methods used in this study. The main areas explored were the strategic reasons for downsizing, the implementation strategies used, and the reactions of middle managers and nonmanagerial staff. In both organizations, downsizing was accompanied by significant redesign and transformation. The underlying theme in Barclaycard was that downsizing was a proactive measure in order to protect future jobs; despite this, the survivors' reactions were negative. SKF (UK) had experienced many rounds of downsizing over the years, yet the reactions of survivors were positive. This article provides possible explanations for these contrasting findings and concludes by suggesting actions that organizations need to take in order to avoid the survivor syndrome.