Is there life after downsizing?

Abstract

Eighty-nine of the largest U.S. corporations have downsized and survived. So, clearly, there is life after downsizing. But what will be the quality of that life, and how can it be improved? A consultant who has guided many companies through the downsizing and postdownsizing process and an internal program manager who has survived the turmoil of downsizing at a major U.S. corporation provide some answers based on their experiences. Here are a number of general principles for companies to follow in downsizing and in coping with life afterward. In addition, we offer a case study of how National Semiconductor Corporation handled its well-publicized reduction in staff and how it established programs to help improve life after downsizing.