The effect of downsizing on affective organisational commitment: a contextual proximity perspective

Two assumptions constrain the literature on the effects of downsizing: that all survivors are affected to a similar extent and that the effect of layoffs can be extended to all workforce reductions. Furthermore, there is inconclusive evidence on the long-term effects of downsizing. I address these issues with two empirical studies on a multinational pharmaceutical company analysing the differential effect of four downsizing methods on affective commitment depending on the contextual proximity of employees. Study 1 shows decreasing levels of affective commitment among employees exposed to layoffs and closure of units (lower commitment corresponds to greater exposure) but the opposite was observed in voluntary redundancies and divestment. Study 2 indicates that downsizing has long-term negative effects which are worse for those exposed a second time