Theoretical perspectives on downsizing: the long-term effect and impact of repeat downsizing.

Current understanding of the long-term effect of downsizing and the effect of repeat downsizing is limitedby the small number of empirical studies in the field and the conflicting evidence they provide. This articlereviews the three theoretical perspectives found in the downsizing literature and concludes that downsizingdoes have a long-term effect on employees and organizations, that the type of downsizing contact andthe order of that contact influence the outcome of repeat downsizing, and that employee vulnerability orresilience to repeat downsizing is dependent on the outcome under investigation.