How downsizing affects the job satisfaction and life satisfaction of layoff survivors

Abstract

Organizations go for downsizing to increase their efficiency and reduce costs but it may result in
dissatisfaction among employees. The current study examines the effects of downsizing on layoff
survivors’ job satisfaction and life satisfaction. The sample for the current study is drawn from the two
main organizations operating in Pakistan. A sample of 450 respondents took part in the study resulting
in 75% response rate. The results show that downsizing negatively affects the job satisfaction and life
satisfaction of survivors. The difference of experiences regarding job and life satisfaction between the
two organizations is also assessed. The results are compared and discussed in the light of available
literature. This study will enable researchers, academicians and policy makers to understand the
influence of downsizing on job satisfaction and life satisfaction.