Downsizing and Affective Organisational Commitment: A Contextual Proximity Perspective.

While the dominant literature on downsizing suggests that workforcereductions have a negative impact on employee commitment, knowledge ofdownsizing is limited by the undifferentiated ways in which downsizing activitiesare usually approached. This study analyses differences in employee commitmentdepending on a) the downsizing method used (voluntary redundancies, divestment,layoffs and closure of units) and b) the degree of exposure of employees to thedownsizing event. Using downsizing announcements and questionnaires, twodistinct families of downsizing methods were identified. Layoffs and closure ofunits have a negative effect on commitment while voluntary redundancies anddivestment have a positive effect. Employee exposure (direct, indirect or notexposed) to the downsizing event accounts for significant differences oncommitment. Studying downsizing in a differentiated way shows that assumingthat all downsizing is detrimental to commitment is inadequate. We outline thetheoretical and practical implications of a more nuanced approach to downsizing.