The impact of downsizing on logistics performance and employees in shipper firms

Abstract

Firms that downsize hope to achieve improvements in performance and to avoid adverse impacts on employees. This article compares the changes in logistics performance and logistics employee fulfillment for shippers that have downsized with those that have not. Two major conclusions of this research are: (1) Respondent firms that have downsized perceive that they have substantially improved their logistics performance, but no more so than respondent firms that have not downsized; and (2) Stress, morale, and loyalty have worsened for logistics employees in downsized respondent firms, both in an absolute sense and relative to respondent firms that have not downsized

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