Downsizing Trust

Special Issue

Abstract

Organizational downsizing has been a major organizational strategy emphasized by managers to improve performance since the late 1980s. Despite the popularity of downsizing in organizations, the implementation of downsizing has resulted in various negative effects on employee morale. This paper examines the relationship between downsizing and trust. The paper first provides a review of the philosophy and strategies for downsizing. It then examines the impact of various downsizing strategies on employee trust and organizational trust. Lastly, the paper offers a discussion about the implications of these strategies for individuals, organizations, and society.