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Corporate downsizing: a study of the survivors

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Corporate downsizing: a study of the survivors

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Content Corporate Downsizing: A Study of the Survivors
by
Rodney Mace
University of Southern California
Rossier School of Education
University of Southern California
A dissertation submitted to the faculty
in partial fulfillment of the requirements for the degree of
Doctor of Education
May 2024

ii
© Copyright by Rodney A. Mace 2024
All Rights Reserved

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The Committee for Rodney A. Mace certifies the approval of this Dissertation.
Maria Ott
Kathy Stowe
Helena Seli, Committee Chair
Rossier School of Education
University of Southern California
2024

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Abstract
This study explored the impact of corporate downsizing within the U.S. railroad industry,
focusing on the experiences of employees who remained with the organization post-downsizing,
referred to as “survivors.” The study employed Bronfenbrenner’s ecological system theory to
analyze the repercussions on employee morale, engagement, loyalty, and the overall
organizational culture from the survivors' perspectives. The research methodology is qualitative,
primarily utilizing semi-structured interviews with 12 employees from Class One railroads in the
United States who have survived recent workforce reductions. Key findings reveal significant
shifts within the microsystem of the immediate work environment, including altered colleague
relationships and communication dynamics. At the mesosystem level, disruptions in leadership
and interdepartmental collaborations are evident, highlighting organizational silos and a decline
in trust. These changes signify a broader shift in company culture and employee perception,
affecting job satisfaction and ethical considerations. The study concludes with recommendations
to mitigate the effects of downsizing on employees. These include practical strategies for
maintaining a healthy and ethical work environment amidst organizational restructuring.

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Dedication
To my parents, who instilled in me the belief that I could achieve my dreams.
To my wife Debbie, whose support was crucial to completing this journey. She always kept me
focused, picked me up during strenuous times, and never complained, even when I was locked
away for hours studying and distant from family events. I could not have done this without you.
To my children and grandchildren, who are my biggest cheerleaders and my inspiration for
obtaining a Doctorate degree. I hope to instill a love of learning in my grandchildren, and I know
they will all achieve great things in their lives.
To all my other family members, sister, brother, nephews, nieces, brothers-in-law, and sisters-inlaw, I express gratitude for our cherished memories.

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Acknowledgments
I want to express my gratitude to my family, cohort 19, and faculty members for standing
by me throughout this journey, and a special thanks to the members of the Thursday night classes
who were supportive, encouraging, and gracious.
I extend my heartfelt gratitude to Dr. Seli, my dissertation chair, for providing guidance
and instilling the confidence that propelled me through the dissertation process and beyond. I
would also like to thank Dr. Ott and Dr. Stowe, my committee members, for their valuable
insights and unwavering support.
Lastly, and of utmost significance, I extend my gratitude to all participants in this study.
Your courage, resilience, and generosity are unmatched, serving as a continuous source of
inspiration for me.

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List of Tables
Table 1: Study Participants.......................................................................................................... 53

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List of Figures
Figure 1: Distribution of Participants by Role.............................................................................. 53
Figure 2: Size of Company Represented by Participants.............................................................. 54

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List of Abbreviations
PSR: Precision Scheduled Railroading............................................................................. 15, 16, 90

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Table of Contents
Abstract.......................................................................................................................................... iv
Acknowledgments.......................................................................................................................... vi
List of Tables ................................................................................................................................ vii
List of Figures..............................................................................................................................viii
List of Abbreviations ..................................................................................................................... ix
Chapter One: Introduction to the Problem of Practice.................................................................. 14
Background of the Problem .......................................................................................................... 14
Field Context and Mission............................................................................................................ 16
Purpose of the Study and Research Questions.............................................................................. 17
Importance of the Study................................................................................................................ 17
Overview of Theoretical Framework and Methodology .............................................................. 19
Definitions..................................................................................................................................... 19
Organization of the Dissertation ................................................................................................... 20
Chapter Two: Literature Review .................................................................................................. 21
Staff Downsizing .......................................................................................................................... 21
Layoff............................................................................................................................................ 23
Impact of Downsizing on Survivors............................................................................................. 24
Psychological Contract ............................................................................................................. 25

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Toxic Handlers.......................................................................................................................... 27
Communication Process............................................................................................................ 27
Employee Commitment ............................................................................................................ 28
Unanticipated Adverse Effects ................................................................................................. 28
Downsizing Measurement Criteria ............................................................................................... 30
Contextual Factors Affecting Downsizing.................................................................................... 31
Downsizing Implementation Strategies........................................................................................ 33
Outsourcing............................................................................................................................... 33
Offshoring................................................................................................................................. 33
Offshoring Outsourcing ............................................................................................................ 34
Additional Downsizing Measures............................................................................................. 35
Staff Downsizing and the Survivor’s Syndrome .......................................................................... 36
Downsizing and Considerations for Employees........................................................................... 38
Chapter Three: Methodology....................................................................................................... 41
Overview of Methodology............................................................................................................ 41
The Researcher.............................................................................................................................. 41
Data Source: Interviews................................................................................................................ 42
Participants.................................................................................................................................... 43
Instrumentation ............................................................................................................................. 44
Data Collection Procedure ............................................................................................................ 45

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Data Analysis................................................................................................................................ 47
Credibility and Trustworthiness.................................................................................................... 48
Ethics............................................................................................................................................. 49
Chapter 4: Findings and Discussion ............................................................................................. 51
Research Questions....................................................................................................................... 51
Participants.................................................................................................................................... 52
How Downsizing Impacts Morale, Engagement, and Loyalty .................................................... 55
Work Environment and Role Changes ..................................................................................... 57
Stress and Uncertainty .............................................................................................................. 59
Communication and Trust Issues.............................................................................................. 62
Impact on Morale and Motivation ............................................................................................ 64
Impact on Satisfaction............................................................................................................... 65
Impact of Downsizing on Organizational Culture ........................................................................ 67
Communication and Collaboration........................................................................................... 67
Changes in Workload and Relationships.................................................................................. 69
Impact on Overall Organizational Culture................................................................................ 73
Summary of Findings................................................................................................................ 73
Chapter 5: Recommendations and Conclusion............................................................................. 76
Discussion of Findings.................................................................................................................. 76
Impact on Employee Morale, Engagement, and Loyalty ......................................................... 77

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Impact on Organizational Culture............................................................................................. 78
Interpretation Using Bronfenbrenner’s Ecological System Theory.......................................... 80
Recommendations......................................................................................................................... 82
Recommendation 1: Enhance Communication Strategies........................................................ 82
Recommendation 2: Foster a Supportive Organizational Culture ............................................ 84
Recommendation 3: Incorporate Employee Involvement and Participation ............................ 85
Recommendation 4: Ensure Long-term Planning and Development ....................................... 87
Limitations and Delimitations....................................................................................................... 89
Future Research ........................................................................................................................ 90
References..................................................................................................................................... 93
Appendix A: Interview Protocol................................................................................................. 100
Appendix B: USC Information Sheet for Exempt Research ...................................................... 102

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Chapter One: Introduction to the Problem of Practice
The evidence highlights that corporate downsizing seldom works as intended and harms
both the employees laid-off and retained employees (Hornstein, 2009). The problem of practice
addressed in this study is the issues associated with corporate downsizing. Hornstein (2009)
defined the practice of corporate downsizing as "a business tactic that aims to improve the
financial standing by reducing and changing the structure of the workforce" (Hornstein, 2009,
para. 3). Corporations minimize employees to maximize profits, efficiency, and effectiveness
(Love & Kraatz, 2009). Downsizing damages organizations’ learning capacity, removing
experienced employees, and sometimes increasing costs (Hornstein, 2009). Corporations that
downsize are also twice as likely to declare bankruptcy (Zorn et al., 2017). Employees who work
for downsizing corporations suffer from low morale and, as a result, are less productive.
Corporations that downsize suffer negative consequences of decreased customer satisfaction,
negative publicity, and reduced employee engagement and loyalty (Love & Kraatz, 2009). This
study focuses on corporate downsizing, prevalent in the railroad industry from 2017 to 2023.
This problem is critical to be addressed because downsizing has become a common cost-cutting
methodology for corporations worldwide.
Background of the Problem
The practice of downsizing has been prevalent in the United States since the early 1970s
when companies adopted downsizing as a corporate strategy. Hornstein (2009) wrote that
downsizing earned its bad reputation during the two recessions in the 1980s and 1990s.
Downsizing has also become commonplace in other countries, including Japan, Canada, and
Korea. According to Jung (2016), since the 1980s, U.S. companies have adopted downsizing
under pressure from shareholders to demonstrate their commitment to shareholder value

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maximization. Corporations have laid off large numbers of employees, numbering, in some
cases, over 30,000 workers (Cohee, 2019). Historically, corporations have implemented
temporary employee layoffs as a customary practice during periods of economic recession, while
permanent layoffs have been relatively uncommon. This practice changed in the 1980s when an
economic recession drove large-scale layoffs, and the trend continued into the 1990s even as
economic conditions improved. In 1994 alone, corporations in the U.S. cut 516,069 jobs while
corporate profits increased by 11 %. In comparison, 1990 was a recession, and 316,047 jobs
were eliminated (Jung, 2016). The statistics demonstrate that a trend continues today as
corporations seek to maximize profits while cutting headcount.
Since 2017, the railroad industry in the U.S. has been undergoing a significant
transformation. All major railroads have implemented a form of Precision Scheduled Railroading
(PSR) (Naslund & Williamson, 2020). PSR is an operational theory credited to E. Hunter
Harrison, who served as the Chief Operating Officer at Illinois Central Railroad, Canadian
National Railroad, Canadian Pacific Railroad, and lastly at CSX Railroad. PSR is derived from
various lean manufacturing and operating methodologies to reduce the organization's operation
ratio, maximize assets, minimize employee headcount, and increase profits (Naslund &
Williamson, 2020). CSX Management implemented PSR in 2017, permanently downsizing over
10 percent of the workforce. Data from the U.S. Bureau of Labor Statistics show the U.S.
railroad industry lost over 40,000 jobs from November 2018 to December 2020 (Ansell, 2021).
Railroads comprised only 3 percent of transportation and warehousing jobs in November 2018,
but railroads accounted for 33 percent of the jobs lost between November 2018 and December
2020. The cuts at CSX impacted employee morale, which attributed to functional decline and
service issues (Naslund & Williamson, 2020).

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Field Context and Mission
This study focuses on the U.S. railroad industry. The U.S. railroad freight industry
consists of seven class-one railroads. Class one railroads are defined as railroads with operating
revenues of 490 million or more (Freight Rail Overview, n.d.). There are also twenty-two
regional and 584 short-line or local railroads in the U.S. The railroads are privately owned and
generate over eighty billion annually (Freight Rail Overview, n.d.). The railroads combine to
employ over 116,000 workers throughout the country. Railroads offer benefits that other forms
of transportation do not, including reductions in road congestion and highway fatalities, reduced
fuel usage, lower greenhouse gases, no public infrastructure maintenance costs, and lower costs
per ton to move goods. Railroads invest approximately twenty-five billion annually to maintain
and add capacity to their network, equaling 19 percent of railroad companies' revenues (Freight
Rail Overview, n.d.).
During the past six years, the class one railroads have implemented a significant
reduction in their workforce by laying off employees and attrition. According to the Surface
Transportation Board (STB), an autonomous federal agency responsible for supervising freight
railroads, the class one railroads have downsized their employee base from 174,000 in April
2015 to 116,000 in June 2021, constituting a 33% decrease (Richter, 2021). Precision Scheduled
Railroading (PSR) is a railway operational approach that utilizes scheduled departures and direct
delivery methods to attain low operating ratios, representing a company's expenditure required to
generate a dollar of revenue and streamline railroad networks by eliminating less efficient shorter
lanes in favor of high-volume routes. PSR has been widely recognized as the primary driver
behind the decline in employment within the rail transportation sector (Monthly Labor Review,
2021).

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Purpose of the Study and Research Questions
The purpose of the study is to explore the experiences of employees who were not
retained during corporate downsizing events. The participants’ experiences were explored in the
context of Bronfenbrenner's ecological system theory. The study culminated in recommendations
for practice in order to lessen the impact of downsizing on survivors. Through the
recommendations, the study sought to address inequities in how organizations downsize forprofits and how this impacts employees' mental and physical health, family relationships, and
future employment. The research questions were the following:
1. How does corporate downsizing affect the morale, engagement, and loyalty of
employees who remain with the organization?
2. How does downsizing impact organizational culture from the perspective of
survivors?
Importance of the Study
Estimates indicate that approximately two thousand United States workers were
downsized daily during the 1990s. This number increased to approximately four thousand daily
between 2000 and 2007 (De Meuse & Dai, 2013). Many employees of companies that downsize
suffer from adverse health issues, including anxiety and depression. Employees experience
altered career paths and contended with new work locations, different working hours and
conditions, and uncertainty about future downsizing events (Koeber, 2002). Downsizing
companies often target older workers. These workers are often considered less valuable than
younger employees due to their age (Armstrong-Stassen & Cattaneo, 2010). Employers are less
likely to invest in training or retention efforts for older employees and encourage them to leave
the organization. Older workers necessitate higher labor costs for organizations due to their

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longevity. Companies sometimes use a depreciation model when gauging the worth of more
senior employees to the organization. When downsized, these workers are less likely to obtain
employment with the same or higher pay or retraining opportunities (Armstrong-Stassen &
Cattaneo, 2010).
Organizations that choose to downsize may also notice a degradation of their safety
processes. During the summer of 2023, federal inspectors identified a notable number of
deficiencies in the locomotives and railcars utilized by Union Pacific at the world's largest
railyard in western Nebraska (Funk, 2023). Remarkably, the railroad exhibited hesitancy in
addressing and rectifying these issues.
Federal Railroad Administrator Amit Bose expressed his concerns to Union Pacific's top
three executives through a letter expressing his apprehension. The identified defects posed a
"significant risk to rail safety" within the Union Pacific railroad network. The defect rates
recorded in July and August, standing at 19.93% for rail cars and 72.69% for locomotives, were
found to be twice the national average. The Federal Railroad Administration raised inquiries
regarding the potential impact of recent layoffs, which included 94 locomotive craft employees
and 44 carmen, within the Omaha, Nebraska-based railroad—one of the nation's largest. This
reduction in workforce raised questions about the railroad's capacity to undertake essential
repairs promptly (Funk, 2023).
The railroad safety issue has garnered substantial national attention, particularly
following a train derailment and subsequent fire involving Norfolk Southern in eastern Ohio in
February 2023. In response to this derailment, regulatory bodies and members of Congress
advocated for reforms; however, the implementation of substantial changes in railroad safety
protocols has been limited in the period after the incident (Funk, 2023).

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Failing to alter the prevailing downsizing trend carries significant repercussions,
including conceivably an unstable workforce, distressed employees, heightened uncertainty in
the job market, compromised employer/employee relationships, and the potential compromise of
rail line safety, thereby impacting public safety. Solving or altering the trajectory of corporate
downsizing may result in a healthier and happier workforce, increased productivity, profits,
safety, and a healthier economy.
Overview of Theoretical Framework and Methodology
The study utilized Bronfenbrenner's ecological system theory. Bronfenbrenner's Ecological
Systems theory asserts that all facets of the environment influence an individual's development. The
environment is divided into five levels: the microsystem, which is the initial tier and is identified as the
closest to the individual, enabling direct interaction and typically comprises the individual’s immediate
family, peers, or caretakers (Bronfenbrenner, 1981); the mesosystem, the exosystem, the Macrosystem,
and the chronosystem (Bronfenbrenner, 1981).
In this study, the chosen methodology for data collection was interviews, aligning with a
qualitative research approach. Unlike quantitative research, characterized by a researcher maintaining a
certain level of isolation and distance from respondents and participants (Fossey et al., 2002), qualitative
research in this study entails a close and direct engagement between the researcher and the participants.
Definitions
The following are key terms for purposes of the study:
• Corporate downsizing is a permanent workforce reduction calculated to produce a leaner
organization and maximize profits (Love & Kraatz, 2009).
• Survivor refers to employees of an organization who did not lose their jobs during a
downsizing event and remain employed with the company (Maertz et al., 2010).

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• A railroad company is an organization that owns and operates freight railroads within the
United States (Freight Rail Overview, n.d.).
Organization of the Dissertation
This study consists of five chapters. Chapter One furnishes the reader with an overview
of the study, including the subject's background, purpose, and importance. This chapter also
provides an overview of the study’s theoretical and methodological framework, definitions, and
information on the study's organization. Chapter two provides a scholarly literature review of the
effects of corporate downsizing on surviving employees and their organizations. The literature
explores the history of corporate downsizing and its impact on employee morale, trust, health,
and well-being. Chapter three includes the methodology for the study, including sample
population, data collection, and analysis. Chapter four presents the findings of the study. Chapter
five concludes the study by discussing findings, recommendations for practice, and future
research.

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Chapter Two: Literature Review
In exploring the ramifications of corporate downsizing on employee morale, engagement,
loyalty, and organizational culture, Bronfenbrenner's socio-ecological model provides a valuable
lens for examining the impacts within the organizational context (Bronfenbrenner, 1981). At the
micro-level, individual employees constitute the primary focus, experiencing direct effects on
morale, engagement, and loyalty. Their psychological responses, job satisfaction, and
commitment reflect the level’s impact. On the meso-level tier, the team dynamics,
communication patterns, and interpersonal relationships within departments or workmates
contribute to shaping the organizational culture experienced by survivors. Bronfenbrenner's
model allows an understanding of how downsizing influences individuals' experiences and the
interconnectedness between individuals and their immediate work environments, which in turn
influences broader cultural shifts within the organization.
Companies worldwide have resorted to downsizing to lower the size of their workforce
(Maertz et al., 2010). The chapter covers several aspects of staff downsizing, including its
concept and measurement criteria, contextual factors, and implementation strategies that affect
the process. The impact of downsizing on survivors is also explored, focusing on survivor's
syndrome. Finally, the chapter examines various considerations for employees in the context of
downsizing.
Staff Downsizing
The environment in which businesses operate is in perpetual flux, and many enterprises
are still dealing with the repercussions of the latest recession. In order to keep their competitive
edge in today's climate, which is becoming more demanding and cost-conscious daily,
businesses are under growing pressure to adjust how they conduct their daily operations (Maertz

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et al., 2010). Many companies have consciously decided to rebuild their internal structures by
incorporating many macro-environmental components. It is essential for businesses to
continuously adapt to new circumstances and be ready to change their organizational practices,
structures, and strategies to remain competitive, considering the rise in global competitiveness,
technological advances, and current shifts in the environment (Datta et al., 2010). In other
circumstances, they must move from burdensome bureaucracy to more flexible and streamlined
enterprises (Maertz et al., 2010). Since 2000, organizational downsizing has become an
increasingly essential issue that must be managed to guarantee that employment policies and
processes are fair. Companies worldwide resort to downsizing to lower the size of their
workforces and raise the competitiveness of their employees, as well as their profitability,
organizational effectiveness, and efficiency (Maertz et al., 2010). The downsizing process will
affect every company employee, regardless of whether their positions will be removed directly
from the process. The effects of downsizing on individuals and the organization might look
much different due to the myriad of societal and institutional restraints and the different research
methods businesses utilize to discover answers to their operational questions.
Corporations have a favorable outlook on downsizing, although employees typically have
reservations about change. They feel anxious because new positions at work have been assigned
to them, and they risk losing previous interpersonal interactions. The responses of the individuals
determine the possibilities for the organization's future spared during the reduction (Marques et
al., 2011). The leadership of organizations during times that are mentally and emotionally taxing,
such as when the organization is in a dominant market share position due to the restructuring and
downsizing of its business units, is a more difficult task than being the leader of an organization
during times when the organization is still in the process of growing due to worker unrest and

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dissatisfaction (Maertz et al., 2010). Several businesses have joined the fight against the
prevalent worldwide layoffs, which has resulted in a redefinition of effective leadership,
employee engagement, loyalty, and devotion (Maertz et al., 2010). Many organizations are
forced to reorganize to survive the rigors of competition, which requires them to move away
from burdensome bureaucracies and toward leaner and more adaptable designs (Maertz et al.,
2010). In addition, these companies must reassess the processes they use to manage their human
resources to ensure the company's continued success. The restructuring process involves several
steps, such as enhancing management and efficiency, cutting the number of employees and their
compensation, selling assets, and enhancing marketing activities. All actions are taken with the
expectation that they will increase profit. When corporations restructure, it is essential to modify
the existing corporate structure (Marques et al., 2011). These modifications must include the
reorganization of the company's finances as well as the optimization of its resources.
Layoff
The term "layoff" describes removing employees from the workforce or the act of
someone being fired from their employment against their will. A "layoff" is a reduction in the
workforce that results in the involuntary separation from employment of one or more individuals
for no apparent cause; this can happen to a single worker or multiple people (Maertz et al.,
2010). When describing a job loss that is just temporary or seasonal, the phrase "layoff" is not
applicable because it does not apply. Research also includes assessments of the effects that
downsizing has on an individual's financial well-being, family connections, attitudes, health, and
other personal aspects of their lives (Datta et al., 2010). Studies conducted on layoffs often
focused on causes that led up to the layoffs or the ramifications of layoffs for the individuals who
were let go by the firm Fields. People are considered downsizing "victims" if terminated by an

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action such as a reduction in force or a layoff (Datta et al., 2010). The personnel downsized from
their positions are the ones who are most immediately impacted by downsizing. Most studies
conducted on the consequences of downsizing have been on how it affects personnel who have
been let go from their jobs. In addition, most of the research has emphasized the negative
consequences of downsizing on people fired from their jobs. An additional set of workers needs
to be considered, including the downsizing "survivors" (Maertz et al., 2010). Survivors are the
employees that remain with the company after shrinking the workforce. A further definition of
survivors might include any individual in the organization involved in the layoff but who does
not lose their job because of the layoff (Maertz et al., 2010). These individuals are not considered
victims of the layoff.
There are many different responses that survivors of layoffs can have. Changes in the
behavior of survivors (workers) from the pre-layoff environment to the post-layoff environment
can be used to illustrate the survivors' responses to the layoff. These changes can be compared
before and after the layoff (Cameron, 1994).
Impact of Downsizing on Survivors
Downsizing is frequently seen as an initiative-taking step to strengthen a company's
financial condition. However, it is necessary to recognize how downsizing affects the workforce
negatively. Employees affected by downsizing may experience extreme stress, worry, and
uncertainty. The process may potentially harm employee productivity and morale. Despite these
negative impacts, downsizing is sometimes necessary for today's cutthroat corporate
environment. (Marques et al., 2011).
Downsizing creates the impression that positive actions are being taken to turn around a
company (Datta et al., 2010). A company's success in the aftermath of layoffs is dependent upon

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the reactions of the individuals in its surviving staff. Marques et al. (2011) discovered a variety
of unfavorable reactions demonstrated by individuals who survived a downsizing. A decrease in
morale may lead to an initial increase in productivity, but feelings of lethargy and depression
usually follow this. This apparent violation of psychological norms can be attributed to increased
stress caused by higher levels of uncertainty. Most downsizing efforts do not address the "people
element," which is the process by which the requirements of the remaining employees are given
the attention they deserve (Marques et al., 2011).
Psychological Contract
On an individual scale, individuals face employment insecurity, a lack of trust, and the
need to make decisions with a short-term perspective (Datta et al., 2010). At the level of the
organization, they are confronted with issues of cultural change, the disintegration of value
systems, negative effectiveness, and the loss of institutional memory. Survivors who trust the top
administration before and after the process of downsizing and see the process of downsizing
have higher chances of exhibiting constructive responses to the situation. These two factors
might lessen the degree to which the downsizing process is alleged as threatening. According to
them, survivors would gain self-confidence in coping with the prospect of downsizing due to
empowerment and work redesign, resulting in survivors demonstrating more progressive and
active responses (Datta et al., 2010).
Adverse reactions to psychological contract violations may be lessened to a certain extent
through positive relationships with colleagues at work. Companies should make promises to the
employees that the company can live up to and have a clear explanation with logic for deciding
to downsize, have transparent and extensive communication with workers concerning the scope
of the changing contract, and fairness in dealing with both non-survivors and survivors of the

26
violation of the psychological contract (Datta et al., 2010). The rate and degree to which
survivors can adjust to the unfamiliar environment are two of the most critical factors in
determining whether a downsizing initiative will be successful. Administrators may help
influence other survivors' reactions in a manner that is helpful to the company through their
activities (Datta et al., 2010). Conversely, managers are becoming an increasingly common
target for being let go from their jobs during organizational contraction. As a result, how
managers are affected by downsizing will dictate how they apply this effect (Datta et al., 2010).
According to Datta et al. (2010), survivors showed adverse reactions to losing friends but
positive reactions to losing coworkers in similar structural positions because it improved their
career and promotional opportunities in the company. One of the most significant problems
victims face is the perception that there has been a breach in their psychological contract with the
abuser. The perceived breach is in addition to the resulting distress and financial and social
dissociations. A violation of the psychological agreement might result in a decreased inclination
to trust future employers and an increased propensity for individuals to prioritize their interests
over those of the company for which they work. It has also been discovered that their general
trust in individuals and their confidence in top management is declining. The implication is that
for any company change activity to succeed, the current psychological contract with the staff
needs to be negotiated again to better assist them in coping with the transition. The negotiation of
the psychological contract is essential to ensure the success of any organizational change
activity. It has been discovered that victims turn to a wide array of coping techniques to deal with
the dramatic shifts in their lives that are a direct result of downsizing.
While some non-survivors adapt and take the initiative to be reemployed, some victims
succeed in turning this negative experience into a new and better opportunity for foraying into

27
new fields. On the other hand, many victims became hostile and antagonistic, exhibiting low
self-esteem levels and depressive reactions as a direct result of the traumatic experience of being
“rejected.” In addition, several factors can influence the categories of coping behaviors the nonsurvivors display. The primary predictors are demographic factors, emotional reactions to job
loss, evaluation of disruption due to job loss, and evaluation of corporate assistance (Cascio et
al., 2004).
Toxic Handlers
The idea of "toxic handlers" refers to managers who take on the burden of the
organization's pain by assisting their coworkers in coping with their workplace bitterness,
frustrations, and sadness (De Cuyper et al., 2012). Toxic handlers are managers who take on this
responsibility. As a result, one of the most significant roles that the implementer could play
during times of crisis, such as organizational transformation (downsizing and layoffs), is to
function as a toxic handler. Downsizing causes employees of an organization to feel overlooked
and dismissed by their superiors. Survivors in organizations that have undergone downsizing are
more likely to claim that their interests have been ignored in most choices made by management.
The perception of being ignored led to a poor view among employees, who believed the
organization treated them unequally. As a result, the organization gained a negative reputation
(Maertz et al., 2010).
Communication Process
An effective communication process may benefit the company, particularly when
managers strive to implement change in the business. The practical communication benefit is
especially true in situations where employees are resistant to change. Therefore, in adopting a
strategy for downsizing, managers should take the time to tell employees all aspects of the

28
strategy that are relevant to the process. When this occurs, employees will demonstrate a higher
level of devotion. Downsizing an organization has a detrimental impact on the company's work
climate. It significantly reduces creative output throughout the process (De Cuyper et al., 2012).
Employee Commitment
Further investigation revealed that the company's creative output that had undergone
downsizing continued to suffer well after the process. According to Cascio et al. (2012), workers
with higher self-esteem and self-efficacy have higher chances of increasing employee turnover in
downsizing firms than in firms not downsizing. These workers with high self-efficacy are
frequently dissatisfied with the decreased number of opportunities, benefits, and rewards made
available because of the downsizing that has taken place. As a result, they experience less
commitment to the company, and as a result, they are more likely to look for work elsewhere.
Downsizing harms all workers' attitudes and behaviors. Employees with greater levels of
experience have a lower level of anxiety in response to downsizing. However, employees with
less experience are preoccupied with the possibility that downsizing will affect them soon. The
downsizing has caused employees to feel less secure in their jobs and has distorted their
perceptions of the workplace. Because of this, they currently need to be more committed, more
motivated, and more satisfied in their jobs. They are considering changing jobs as soon as a
better job opportunity presents itself. The primary motivations for downsizing are the recent
economic collapse and associated losses. It has also been discovered that downsizing
significantly influences employees' attitudes (Cascio et al., 2004).
Unanticipated Adverse Effects
One of the most significant discoveries from the research on downsizing (Cascio et al.,
2004) was that most companies do not realize the benefits intended for them but rather

29
experience a rise in negative repercussions. A common belief is that downsizing has substantial
implications for staff and businesses, both those who keep their positions and those who lose
them. According to Meyer et al. (2002), workers who remain with the company will be impacted
by downsizing strategies that aim to increase the organization's flexibility, promote responsibility
on the part of the employee, and streamline operations. When a firm breaks its "psychological
contract" (Cascio et al., 2004) with its workers, the workers' reaction may include lowered levels
of trust and decreased loyalty to the organization. Corporate downsizing creates unanticipated
adverse effects on both persons and organizations, which raises the likelihood of suffering from
such influences. Multiple managers have stated that terminations harm their juniors' production,
morale, and public commitment to the company. Even while other managers have observed that
their employees react substantially differently to the same workgroup or organization, the
impacts of downsizing on individual workers have gotten a significant amount of attention.
According to Meyer et al. (2002) findings, the effects of downsizing include increased
resistance to change, job insecurity, anger, and stress at work; diminished organizational
commitment and loyalty; decreased motivation and productivity; and decreased organizational
commitment. Meyer et al. (2002) show a wide range of dependent factors, including
organizational trust, at the organizational and individual levels. On the other hand, these
dependent variables are separate from a single overarching theoretical concept that contributes to
how downsizing situations affect organizations and those working for them.
One of the most critical findings from the study on downsizing by Cascio (2004) was
that most companies do not experience the benefits intended for them but rather experience an
increase in negative repercussions. The finding was one of the most significant discoveries from
the study. It is widely believed that staff reductions have substantial ramifications for the

30
company, employees who remain in their roles, and those who are laid off due to the reductions.
According to Meyer et al. (2002), downsizing techniques that aim to increase the organization's
flexibility, promote responsibility on the part of the employee, and streamline operations will
affect employees who remain with the company after the company undergoes a restructuring.
When a company violates the psychological contract it has with its employees, the employees'
responses may include decreased levels of trust and loyalty to the organization. The
"psychological contract" is viewed as a mutually beneficial agreement. Unexpectedly negative
impacts may be incurred on individuals and organizations due to downsizing, increasing the
likelihood of suffering from such repercussions. Multiple managers have believed terminations
negatively influence their juniors' output, morale, and public dedication to the firm. Even though
other administrators have noticed that their employees react much differently to the same
workgroup or organization, the effects of downsizing on individual workers have received
significant attention. Downsizing can significantly impact a worker's ability to perform their job.
Downsizing Measurement Criteria
In downsizing research, various measuring criteria have been applied in addition to the
multiple levels of analysis. Both factors have contributed to the delayed development of the
downsizing literature. Historically, the most common reasons for downsizing have been
indications of decline, layoffs, or failure to adjust to changing conditions. The failure of an
organization to properly adjust to increasingly difficult external conditions is usually the root
cause of its subsequent downfall (Cameron, 1994). The unfavorable outcome of inadequate
adaptation to antagonistic environmental conditions is commonly called decline (Cameron,
1994). While laying off employees is the most common step that downsizing firms take, the term
"downsizing" refers to a process that covers a broader range of activities and ramifications than

31
simply. One strategic solution typically required when companies reduce their workforce is to
undertake layoffs. Reducing the workforce size can be strategic and initiative-taking, involving
various techniques and approaches depending on the circumstances (Cameron, 1994).
Contextual Factors Affecting Downsizing
For CEOs to maintain their relevance in the marketplace and adapt to the ever-shifting
nature of the corporate environment, they must consistently modify their plans. When breaking
down the business environment, two distinct categories emerge: 1) the macro environment,
which encompasses socio-cultural, economic, political, and technological dynamics, and 2) the
task environment, which is characterized by the reactions and actions of the customers,
competitors, partners, and suppliers. Both categories are subdivided further into subcategories. It
has been suggested, on occasion, that challenging economic conditions are to blame for
downsizing (Marques et al., 2011). During economic sluggishness, consumers have less
discretionary income to spend, leading to a decline in revenue for companies. Management
teams must participate in cash-saving activities, some requiring cost reductions. Because
personnel costs are the most sizable portion of most firms' total controllable costs, staff
headcount reductions are becoming increasingly inevitable (Marques et al., 2011).
The result of development and research efforts in different sectors is the emergence of
modern technologies that are either more affordable or productive. In addition, new
manufacturing lines could result in more desirable items that customers value. If a company
keeps its production lines the same despite changes in consumer tastes and preferences, it will
witness a decline in its sales volume. For businesses to maintain their position at the forefront of
their industry, top executives must investigate the potential of upgrading outmoded equipment. A

32
change like this could result in layoffs of employees if the new equipment requires fewer people
to operate them (De Cuyper et al., 2012).
Because of the entrance of new competitors into the market, the market's currently
dominant firms would probably experience a drop in sales and revenue. Because of this,
companies need to reevaluate how they manage their operations to ensure that they remain
relevant in the market (De Cuyper et al., 2012). More cost-effective technology will likely be
installed during the reevaluation process, or unnecessary expenses will be removed. Both
projects may have repercussions on the number of staff members that are required. Less
expensive technologies may call for a smaller workforce, and wasteful costs may include staff
members who are not actively contributing to the company but whose roles are becoming
obsolete (Cascio et al., 2004).
Changes to the regulatory structure may need an in-depth examination and reevaluation
of the business procedures that are currently in place by companies (Marques et al., 2011). For
instance, if the Central Bank were to raise the minimum requirement for capital reserves, many
of the nation's smaller banks would be unable to meet the new standard, forcing them to
consolidate into larger institutions (Cascio et al., 2004). Consolidation would occur if the Central
Bank raised the minimum requirement for capital reserves. Staff members may be let go because
of these mergers amongst smaller operators to form a bloc. Corporate mergers create duplication
among staff, making it likely that all staff members will not find acceptable possibilities in the
combined whole without causing duplications and disputes. After the completion of the merger,
for instance, the company will not need to employ two chief executives simultaneously.

33
Downsizing Implementation Strategies
The research on downsizing suggests that several distinct implementation methodologies
have been discovered. Cameron et al. (1994) conducted one of the most exhaustive and
systematic research on the corporate downsizing workforces. The research reported significant
findings out of thirteen about the implementation strategies for downsizing. Primarily, they
distinguished the three main strategies for implementing downsizing, which they found and
identified. That is a strategy for reducing the workforce, redesigning the organization, and a
strategy at the systemic level (Cameron et al., 1994).
Outsourcing
Outsourcing is one of many tactics that can be utilized during downsizing. Processes and
job relocation to independent or outside providers, irrespective of the provider's location, are
referred to as outsourcing (Oslen, 2006). Outsourcing offers the advantages of using specialized
expertise, saving money, and having more flexibility with one's workforce. Potential concerns
include misalignment of interests, a rise in dependence on third parties, and a need for more
internal knowledge of the company's vital operations. The staff of organizations that outsource
their work can be categorized into one of three groups: those who are let go, those who remain
with the company after the transition (referred to as "survivors"), and those who are moved to
work for an outsourcing vendor (Tinselboer, 2005).
Offshoring
Offshoring is a way of downsizing referred to as the transfer of processes and work to
any foreign nation. It does not distinguish between providers who are within the company and
providers who are external to the organization. Offshoring, or worldwide outsourcing, is another
name for this business practice. One benefit of organizing activities within the company rather

34
than outside the company is that this enables the headquarters to have greater control over the
activities. Control is one of the reasons why organizing activities within the company rather than
outside the company is preferable (Marin, 2006). Tasks outsourced to third parties ensure the
management of those tasks by the third-party organization.
Offshoring Outsourcing
Offshore outsourcing has become increasingly popular in recent years. A company can
transfer its manufacturing processes that are relatively cost-inefficient to external providers who
have cheaper production capacity and possibly even production capacities that are more efficient
if they use offshore to produce their goods. These external providers are referred to as offshore
providers. Therefore, they can raise their output or participate in new company activities.
Offshoring can result in lower production costs, greater availability of individuals with the
necessary skills, and a more rapid completion of work thanks to a more widespread talent pool.
These benefits can be achieved by taking advantage of a larger pool of potential employees
(Olsen, 2006). One such trend is the so-called "offshore outsourcing," which refers to moving
procedures from an internal organization to an outside party in a different nation. The procedure
of offshore outsourcing means work is shifted outside the organization within the same
nation(onshore) but outside of the country where processes were previously conducted (offshore)
(Olsen, 2006).
Most researchers use "layoff" and "to downsize" interchangeably rather frequently.
Nonetheless, Maertz et al. (2010) draw a line of demarcation between the various approaches to
downsizing (outsourcing, offshoring, and layoffs). When researchers differentiated between
various causes of downsizing and layoff methods, the research highlighted those instances where
they did so. On the other hand, this lack would not be emphasized if no differentiation were

35
created (Maertz et al., 2010). Reducing the workforce, frequently referred to as the "layoff plan"
(Marin, 2006), focuses primarily on reducing the overall number of employees and eliminating
headcount to accomplish this goal. The layoff plan includes golden parachutes, buyout packages,
hiring freezes and layoffs, and reductions. This approach is typically used reactively as a costcutting measure and may function as a short-term solution to diminishing profitability (Marin,
2006).
Additional Downsizing Measures
Numerous additional tactics for downsizing might be utilized instead of those listed
above, such as layoffs, outsourcing, offshoring, and offshore outsourcing; however, those will
not be employed in this work. Additional downsizing measures include tactics and strategies
such as involuntary redeployment, induced redeployment, boosting the part-time and temporary
labor force, and job redesign. Cameron (1994) included a chart in his summary of the
conclusions of his study on the implementation of thirty different companies. Cameron (1994)
differentiated three categories of downsizing strategies: systematic, personnel reductions, and job
redesign. He distinguished not only between the means of reducing the workforce but also
between other tactics involving the units themselves and the occupations. He said this short-term
employee reduction payback aim encompassed layoffs, attrition, buyout deals, and early
retirements in the context of the workforce reduction strategy, which he deemed to be the most
appropriate one for the primary topic of this study.
"Grenade-type" techniques, which include quick fixes and short-term solutions for
downsizing, have a low probability of success and typically have unfavorable outcomes due to
their implementation (Cameron, 1994). Instead of reducing the number of workers, the
organization redesign method primarily emphasizes finding ways to do away with unnecessary

36
tasks. It removes functions, hierarchical levels ("de-layering"), products, and groups, rethinking
tasks and divisions, merging, and combining units, and lowering general work hours. Techniques
for redesigning an organization are difficult to adopt rapidly since doing so necessitates an indepth analysis of the areas involved. The universal approach differs from the other two tactics
because it assumes a more holistic vision of company transformation. This is one of the primary
ways the systemic strategy differentiates itself from its predecessors. Therefore, the downsizing
process should consider all areas and dimensions of the business, such as customer interactions,
design process, production methods, suppliers, and inventory levels. The primary emphasis of
systemic strategy is on bringing about modifications to the fundamental culture of the
organization and the attitudes and values held by its personnel. Therefore, downsizing is seen as
a way of life and an ongoing, continuous, and progressive process. Staff is not the focus of
downsizing within this framework; instead, they are viewed as resources to create and adopt
downsizing ideas.
Companies are generally more likely to have depth in their tactics than breadth.
Companies that integrate many actions that fall under the same execution category have more
depth in their overall downsizing plan (Cameron, 1994). On the other hand, businesses that use
several different sorts of strategies have a plan that has a greater degree of breadth. This startling
discovery can be linked to the fact that most firms that have been downsized have instead opted
to pursue workforce reduction choices instead of adopting various downsizing tactics.
Staff Downsizing and the Survivor’s Syndrome
Since the 1980s, organizational tactics that involve downsizing have seen an increase in
both their prevalence and popularity. Organizations downsize when their size and costs decrease,
and their work procedures are altered. Organizations downsize to enhance the organization's

37
effectiveness, productivity, and competitiveness. Regeneration is the most crucial aspect to
consider when defining the term. On the other hand, more recent research calls into question the
financial advantages of downsizing tactics. It highlights the detrimental impacts of a significant
loss of human capital. According to reports, it is a typical response to an emerging global
environment, although it was initially utilized for troubled companies. (De Cuyper et al., 2012)
Because downsizing became so prevalent in the early 2000s, its negative impacts have
been normalized to the point where management in many companies views them as an essential
component of the company's success and advancement. Downsizing only sometimes results in
the expected benefits while keeping an increasing role in the organization's change. As a result,
there has been an increase in research that examines the psychological impacts of downsizing for
everyone involved. Research shows that layoffs devastate employee morale and frequently leave
businesses with a population composed of depressed survivors. According to a recent research
study, the negative repercussions of downsizing are just as severe for these remaining employees
as they were for those laid off. "Survivor Syndrome" refers to the emotional and behavioral traits
common in those laid off (De Cuyper et al., 2012).
According to Cascio et al. (2004), survivors frequently display a variety of problems,
such as a significant drop in dedication to the organization. Additionally, there is a higher
likelihood of suicidal behavior among survivors. Mistrust, worry, fear, frustration, and rage are
among the emotional aftereffects that can harm productivity and performance when a smaller
workforce is restructured to take on more tasks. The emotional aftereffects can constitute a
severe threat to the organization's effectiveness. People's lack of trust in one another is the root
cause of these feelings. The reactions of the people still working for a company after layoffs will

38
determine how successful the company will be in the aftermath of the layoffs (Cascio et al.,
2004).
Consequently, efficient management of those who have survived is essential to ensure the
sustained prosperity of the company in the years to come. Maertz et al. (2010) clarifies these
features have shown a mismatch between "survivor syndrome" characteristics and those stated in
classic downsizing literature. Even in the early work on "survivor syndrome," there is some
indication that effective management of downsizing may control for adverse effects on the
survivors, which is still the case today. Concerns surrounding the perceived justice of the
situation, degrees of commitment, and job security before the downsizing significantly affected
the survivors' attitudes.
Consequently, the existing body of research on downsizing (Maertz et al., 2010) needs to
be revised because evidence demonstrates that particular companies have not necessarily had
negative repercussions due to shrinking. The literature on organizations makes it abundantly
evident that specific actions and attitudes are required for organizational productivity. Those
attitudes and behaviors are as follows: satisfaction, commitment, performance, perceived
organizational support, absenteeism, and the intention to leave the organization are some
attitudes and behaviors that fall under this category (Meyer et al., 2002).
Downsizing and Considerations for Employees
The ongoing efforts of the "survivors" continue to be essential to the firm's survival. The
surviving staff is likely to draw assumptions regarding the motivations of their supervisors after
observing how the downsizing process proceeds after witnessing its implementation. There is an
extensive range of activities, such as this one, that has the potential to affect attributions. These
attributions affect individuals' subsequent discretionary efforts and their tendency to continue

39
working for the organization. Survivors are susceptible to downsizing strategies because these
methods address the employment insecurity directly affecting shrinking (Marin, 2006).
An insecure employment situation significantly contributes to stress, which can manifest
in many ways, including dissatisfaction with one's job, a desire to leave the firm, increased
absence, turnover, and even disability claims (Marin, 2006). Downsized workers report that a
level of work uncertainty between moderate and high is more motivating than severe job
insecurity. The productivity of the vast majority of employees should increase after the
downsizing, ultimately leading to business performance improvements. After a workforce
decrease, it is possible to fulfill this goal by legitimately reestablishing some degree of job
security for the remaining employees. There is a potential that this does not require job security
guarantees in their work environment. Most businesses do not guarantee survivors long-term
employment; instead, the companies understand that layoffs are an inevitable part of an ongoing
process of adjusting to changing market conditions. As an alternative to providing survivors with
assurances, organizations may provide them with possibilities to increase their marketability by
receiving training in managing their careers and the development of their talents. Those survivors
who are more likely to respond with a more substantial level of dedication to their current
occupations are the ones who have reason to feel that their employers are committed to
maintaining their employability. These businesses may also have a greater chance of retaining
valuable personnel with optimistic views regarding the labor market.
Businesses can keep at least some trust between their workers and management during a
downsizing program by increasing managers' interaction with workers and the frequency with
which this contact occurs (Marin, 2006). By presenting survivors with an in-depth and
convincing justification for the initiation of a downsize, it is possible to lessen the ensuing job

40
instability experienced by the survivors. The degree of compassion and decency shown to
terminated coworkers during the inherently humiliating process of downsizing also shapes
survivors' expectations for how they would be treated. A violation of the dignity of workers can
leave survivors feeling outraged and compassionate, which can harm their commitment to the
company and their level of productivity. As a second consequence of these emotions, survivors
could also be less productive. As a result, the hypothesis states that businesses that reduce their
workforce and establish procedures that demonstrate consideration for the morale and well-being
of employees will perform better than businesses that do not implement such strategies. Paying
attention to these challenges needs to result in increased voluntary efforts and a subsequent
reduction in voluntary turnover among survivors who possess marketable talents; this will
increase the firm's pool of human capital (Marin, 2006). Organizations that enhance survivors'
marketability and job security, uphold the dignity of workers facing position eliminations,
provide comprehensive explanations for downsizing decisions, communicate extensively during
the downsizing process, and offer ongoing counseling to survivors are likely to experience
improved performance following the implementation of a downsizing program. According to
Marin (2006), businesses that make these efforts should have improved performance.

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Chapter Three: Methodology
This chapter describes the methodology used to analyze downsizing and its influence on
employees in this study. In addition, the chapter provides specifics on the process used to acquire
the data and measures to ensure a credible, trustworthy, and ethical approach. The research
questions guiding the study are the following:
1. How does corporate downsizing affect the morale, engagement, and loyalty of employees who
remain with the organization?
2. How does downsizing impact organizational culture from the perspective of survivors?
Overview of Methodology
Interviews were the methodology selected to collect data; the research method
chosen is qualitative. In contrast to quantitative research, where the researcher maintains
a degree of isolation and distance from respondents and participants (Fossey et al., 2002),
qualitative research involves a close and direct engagement of the researcher with the
participants.
The Researcher
At the time of this study, I was a recently retired management professional with over
thirty years of employment at a major railroad company. I am also a retired combat veteran with
over 24 years of military service. Many employees in the railroad industry believe management
personnel contribute to the downsizing problem. I am conscious of this power dynamic and
intend to minimize its impact. The researcher's position is critical because the researcher is the
primary data-gathering tool in qualitative research (Creswell & Creswell, 2018). The researcher
is also responsible for data analysis to explain societal events and may have numerous duties

42
throughout a research project. The extent to which a qualitative research study is considered
trustworthy is directly proportionate to the degree to which the researcher's involvement is
detailed. The fact that the data will be compiled and analyzed suitably is crucial in determining
the credibility of the findings (Creswell & Creswell, 2018).
Credibility, transferability, reliability, and conformability will be discussed. To maintain
the integrity of my study, I also employed anti-bias techniques. The first technique I employes
was reflexivity, discussing pertinent characteristics such as my positionality, prior job
experience, and research motivations. I constantly thought about my previous experiences and
feelings to prevent influencing the respondents' perceptions (Creswell & Creswell, 2018). The
second practice I used was peer debriefing. A peer debriefer was used to review and ask
questions about the research study, allowing the study to reverberate with the reader (Creswell &
Creswell, 2018). The final technique I employed was having an external auditor review the entire
project. The external auditor reviewed the project to enhance the study's validity (Lincoln &
Guba, 1985).
Data Source: Interviews
This study employs a qualitative research design to investigate the impact of downsizing
on survivors. Analyzing the experiences of downsizing survivors via interviews within
qualitative research is particularly advantageous. Interviews provide an appropriate way to
explore the personal and social difficulties survivors face, as well as their motivations, attitudes,
and perceptions related to the responses to the downsizing experience (Remenyi et al., 1998).
Interviews allow for acquiring in-depth information regarding those who survived the
downsizing and provide an opportunity to explore the topic from the participants' perspective.

43
Distinct types of interviews can be employed in qualitative research, varying in the level
of structure imposed on them. Unstructured interviews are characterized by minimal structure,
allowing participants to speak freely about their experiences. In contrast, semi-structured
interviews offer a degree of structure while allowing for flexibility and spontaneity in
participants' responses (Remenyi et al., 1998). This study used in-depth interviews with a semistructured format to collect the data linked with survivors' experiences following a downsizing.
Interviews were the best method as they allowed for flexibility during data collection. It
also allowed for a better response rate compared to the use of emailed questions and allowed for
judging a particular respondent's non-verbal behavior. Finally, using interviews gave me more
control over the order of the questions and enabled me to ask spontaneous questions for better
clarity.
As "an intentional talk between two or more people," interviews are "arguably the most
popular approach employed in qualitative research," and they are defined as "a conversation to
gather information" (Bryman, 2008, p. 13). Conducting interviews is an efficient way to acquire
noteworthy evidence from the individuals who are the subject of an investigation. Interviews are
a powerful approach that may be utilized to investigate more complicated phenomena linked
with the experience of individuals (Denscombe, 2010). Therefore, interviews provide a technique
that is tuned to the intricacy of the subject matter (Bryman, 2008) and that can get insight into
personal and sensitive issues such as an individual's emotions, opinions, or feelings that may not
be expressed in words but need to be comprehensively conveyed.
Participants
Participants in the interviews were workers employed by class 1 railroads in the United
States. The interviewees were all employed by organizations that have undergone some form of

44
workforce reduction within the last twenty-four months. The interviewees were deemed
survivors of the downsizing events since they were not chosen for the job losses; the same
companies still employ them and continue to work the same jobs. The interviewees included
low- to mid-level management and supervisory staff and union members. I excluded employees
who directly planned, supervised and executed downsizing events. In addition, the sample
included males and females of varying ages and demographics.
A purposeful sampling approach was used since it is necessary to fulfill objectives and is
consistent with an interpretive perspective on research (Denscombe, 2010). In the purposive
sampling methodology, the inquirer selects specific individuals and settings for investigation
because they enhance the understanding of the research topic and the key phenomenon in the
study (Creswell, 2007). I informed the participants the purpose of the research was strictly
academic.
The participants were recruited from LinkedIn and the Brotherhood of Locomotive
Engineers and Trainmen (BLE-T). LinkedIn is a social media site where individuals network and
build professional relationships (LinkedIn, n.d.). The BLE-T is a union organization for
locomotive engineers, conductors, and conductors with members from all major railroads in the
United States (Brotherhood of Locomotive Engineers and Trainmen, n.d.). The BLET maintains
a website and an email listing of all members. Requests for interviews of downsized railroad
workers on the LinkedIn site and from the BLET members ensured a quality pool of candidates.
Instrumentation
The primary instrument for data collection was the interview protocol presented in
Appendix A. The interview protocol utilizes a set of twelve open-ended questions. The questions
were designed to gather detailed information about the experiences and perceptions of the

45
participants. As a qualitative research method, the interview protocol allowed for the collection
of rich and detailed data that can provide valuable insights into the research question. Each
question was designed to solicit informative responses from participants. I followed the
interviewee and not necessarily the interview guide. By adopting principles designed by Merriam
& Tisdell (2016), I remained non-judgmental, respectful, and sensitive during the interview
process. The questions sought to understand the experiences and perceptions of participants, and
the responses were qualitative. The study’s protocol reflects the recommendation that the number
of questions should not exceed ten due to the limited time with each participant.
Data Collection Procedure
I began data collection by requesting potential interviewees to schedule ample time to
conduct the interview. The primary means for conducting interviews was through Zoom video
calls, with phone interviews as an alternative. The interviewees and I were in various parts of the
world, so face-to-face interviews were impractical due to the required time and financial
resources. The interviewees and I were in quiet locations to ensure privacy. The duration of each
interview ranged from 45 to 60 minutes.
To ensure that no information was lost during the interview process, I used a laptop
computer to record the interviews as a backup to the voice recorder. I evaluated the voice
recorder beforehand to ensure its long battery life, excellent acoustic capabilities, and sufficient
memory capacity to meet the task's requirements. Additionally, I engaged a third-party
transcription service, rev.com, to transcribe the voice recorder data. Upon completing the
interview, I proofread all written transcriptions to improve their clarity and spelling accuracy.
In addition to the interview protocol, notes were taken during the interviews to capture
any observations or non-verbal cues relevant to the study. The notes supplemented the interview

46
data and helped provide a more comprehensive understanding of the participants' experiences.
Taking notes was an essential tool during this research. Note-taking helps the interviewer recall
the conversation details when analyzing the data later (Roumaissa et al., 2022). By recording
critical points of the interview, the interviewer can review the material and ensure that they get
all the essential insights. This can also help to avoid potential misinterpretations or memory
lapses.
Additionally, note-taking helps to ensure the accuracy of the information gathered. It is
common for individuals to provide information that may need to be more precise, clear, and
complete. Recording the information immediately helps clarify and confirm the meaning of the
participant's responses.
Roumaissa et al. (2022) also identified that note-taking allows the interviewer to capture
non-verbal cues and body language. These cues provided additional insights and context that
were not evident from the interviewee's words. Non-verbal cues such as facial expressions, tone
of voice, and body posture were valuable in interpreting the interviewee's responses and
identifying potential areas of inquiry. Taking notes helped the interviewer reflect on their biases
and assumptions. By noting their initial reactions and thoughts during the interview, the
interviewer became more aware of their preconceptions and biases, which ultimately helped to
conduct more objective and unbiased research (Easter et al., 2022).
Taking notes during the interview was crucial as it allowed me to capture vital details that
the voice recorder might not have recorded. Moreover, it served as a reminder to follow up on
important points the interviewee mentioned during the interview. I ensured a comprehensive
interview record using a voice recorder and taking written notes. Finally, I did not alter the

47
interviewee's comments in any way when including them in the transcription, preserving the
integrity of the data.
Data Analysis
A qualitative approach served as the foundation for the process of analysis. Qualitative
research requires in-depth research on the empirical material to unearth the more profound
significance behind participants' experiences (Groenewald, 2004). Data analysis begins as the
data is collected. A five-step analysis process was used to provide multiple levels of analysis
(Creswell & Creswell, 2018). The first step was transcribing and organizing the interviews and
arranging the data depending on the sources of information (Creswell & Creswell, 2018). The
second step was to review the transcriptions of the interviews to understand what the
interviewees were saying, including the overall tone, credibility, and usefulness of the
information (Creswell & Creswell, 2018). The third step involved coding the data. The data was
coded using a term based on the interviewee's wording, called In Vivo Coding (Creswell &
Creswell, 2018). Step four was coding to generate a description and theme (Creswell &
Creswell, 2018). The description included a detailed translation of information about places,
people, or events. Themes were analyzed for each interviewee and shaped into a general
description (Creswell & Creswell, 2018). The last step was representing the description and
themes. A narrative verse transmitted the findings for analysis, including a discussion of
chronological events and a detailed discussion of several themes with multiple participant
perspectives (Creswell & Creswell, 2018). Each of these processes was illustrated in detail to
make the analysis as straightforward as possible to comprehend the experience of survivors of
the phenomena of downsizing. For this study, data analysis was guided by Bronfenbrenner's
ecological theory (Bronfenbrenner, 1981). Bronfenbrenner's ecological systems theory guided

48
data analysis in studying the experiences of survivors of corporate downsizing, as it enabled
examination of how individual, social, and contextual factors interact to shape the experiences of
employees who stayed with the organization after the downsizing event. The present study
illustrates emerging themes derived from diverse participant perspectives, utilizing their
verbatim narrative quotations. Each narrative was supplemented with accompanying descriptive
information pertaining to the respective participant's demographic characteristics, which were
employed to establish linkages between their narratives and analysis of self-efficacy.
Credibility and Trustworthiness
In this study, I was the principal mechanism of data collection. Validity refers to the data
analysis process as outlined by the accuracy of the measurement, while credibility refers to the
trustworthiness of the data. The validity and credibility of data collection in a doctoral thesis can
be ensured by following established research methods, engaging in peer review, and providing a
clear explanation of data collection procedures. (APA, 2020). Credibility can be established
through multiple sources of evidence, including the credibility of the researcher, the credibility
of the participants, and the credibility of the data itself (Lincoln & Cuba, 1985). I utilized data
triangulation, which entails using multiple data sources, techniques, studies, and theories to
corroborate new results and optimize truth and reliability (Merriam & Tisdell, 2016).
I performed transcript checking to guarantee the correctness of the transcripts. Transcript
verification of the interviews was conducted to ensure the participants’ true feelings and answers
were accounted for in the study (Merriam & Tisdale, 2016). I revealed my positionality to the
subjects and used data aggregation. My previous professional experience and any potential
prejudice I might bring to the conversations make up my positionality. The goal of disclosing my

49
positionality allowed for full disclosure of my prior career and any possible bias I brought to the
interviews.
Ethics
Ensuring ethical principles in this research project is paramount to protect the
participants. As a retired management professional from a large railroad firm, I understood the
potential power dynamic in this study and the importance of minimizing any impact on the
downsizing problem. Therefore, I disclosed my positionality and clarified that I was conducting
this research in an academic capacity rather than a corporate one. The participants' privacy and
confidentiality were strictly upheld before, during, and after the interview, and no compensation
was given for participating in the study.
Potential participants were provided information about the study's purpose and intended
outcomes for this research project. Participants were provided the Information Sheet for Exempt
Studies, which outlines the voluntary nature of their participation. They were invited to
participate in a one-hour interview via Zoom or telephone, where they answered questions about
their experiences as a downsizing survivor. Participation in the study was entirely voluntary, and
they were not obligated to respond to any questions. They were also informed they could opt out
of the study anytime, and their information would be removed from the database. Additionally,
the participants were allowed to either have the interview audio recorded and transcribed or have
written notes taken instead. They were assured the survey, interview, and questionnaire were
only for the study's purposes and would remain anonymous, and everything will be kept
confidential.
The reliability of data collection is critical in this study, and triangulation was used to
maximize validity and reliability. Triangulation refers to using multiple sources of data, multiple

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methods, multiple investigations, and multiple theories to confirm emerging findings (Merriman
& Tisdell, 2016). This study utilized triangulation to connect the interviews to confirm themes
and narratives. Transcript verification of the interviews was also be conducted to ensure the
participants' true feelings and answers are accounted for in the study (Merriam & Tisdale, 2016).
Overall, these methods ensured the study's credibility and enhanced the value of the research
findings.
Protecting the identities of the participants is of utmost importance. I did not include the
companies' identities or personal identifying information in the final report to ensure this.
Additionally, direct quotes were edited to remove any identifying information that may have
been included. Each participant's name was replaced with a unique number to distinguish
between contributions in the final document. Furthermore, to ensure the confidentiality of the
information gathered, I was the only person who transcribed the interviews. A passwordprotected file on my computer held all the information from the interviews, surveys, and
questionnaires. This file was only accessible to me at any given time. In addition, I created a
backup of the information on an external hard drive to minimize the possibility of data loss. Hard
copies of the information, such as printouts and field notes, were stored securely in my home
office. The participants' identities will never be revealed, even if the findings are presented at
academic conferences or published in academic publications. Once the material was no longer
necessary for research purposes, it was destroyed to protect the participants' identities.

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Chapter 4: Findings and Discussion
Corporate downsizing remains a prevalent strategy in today’s organizational landscape,
impacting employees within various industries (Schenkel & Teigland, 2017). This chapter delves
into the findings from interviews conducted with survivors of corporate downsizing within the
U.S. railroad industry, aiming to unearth the dynamics at play and their subsequent implications.
It begins by offering a glimpse into the demographic breakdown of interviewees and their roles
within the U.S. railroad industry. Subsequently, it dissects the influences at various system levels,
elucidating their effects on survivors’ motivation and the overall organizational culture. The
findings corroborate the relevance of Bronfenbrenner’s ecological system theory and provide
deep insights into the specific influences that impact the experiences of survivors.
Research Questions
The research questions posed in Chapter One guided this investigation, focusing on
understanding the impact of downsizing at different ecological system levels proposed by
Bronfenbrenner’s ecological systems theory (Bronfenbrenner, 1981). Examining the
microsystem and mesosystem influences provided critical insights into how these factors shape
survivors’ motivation and organizational culture post-downsizing. The following questions were
addressed:
1. How does corporate downsizing affect the morale, engagement, and loyalty of employees
who remain with the organization?
2. How does downsizing impact organizational culture from the perspective of survivors?

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To answer these questions, two canopying elements, the impact on the microsystem and
the impact on the mesosystem, were handled as described in the subsequent headings. Each of
them was addressed per the individual aspects that relate to them.
Participants
The study encompassed a diverse group of 12 experienced professionals from the
railroad sector, comprising six managers and six union personnel. The participants exhibited a
wide range of ages, with an average age of 46 years (range = 27 – 60), reflecting the varied
spectrum of experience and perspectives within the industry. Notably, these individuals had an
average tenure of 21 years (M = 8.5) within their respective companies, signifying a depth of
experience and familiarity with the organizational landscape. Moreover, participants reported an
average of 1.8 years (M = 2.5) in their current positions, suggesting a blend of seasoned industry
veterans and relatively newer incumbents, contributing to diverse viewpoints on organizational
changes. The study included representation from employees across five distinct railroad
corporations, providing a multifaceted perspective on the effects of downsizing within this
sector. Additionally, half of the participants held managerial positions (n = 6, 50%), enriching the
study with insights from individuals responsible for overseeing and implementing organizational
changes.

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Table 1
Study Participants
Company (Alias) Participant (Alias) Role
Northern Rail P1 Manager – Human Resources
Northern Rail P2 Union – Locomotive Engineer
Northern Rail P3 Manager - Transportation
Northern Rail P4 Union - Conductor
Northern Rail P5 Manager – Human Resources
Northern Rail P6 Manager - Transportation
Northern Rail P7 Union- Locomotive Engineer
Northern Rail P8 Manager – Human Resources
Midwest Rail P9 Union- Conductor
Midwest Rail P10 Manager - Transportation
Southern Rail P11 Union – Yard Master
Southern Rail P12 Union – Conductor

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Figure 1
Distribution of Participants by Role
Management
50%
Non-union employees
50%
Distribution by Role
Management Non-union employees

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Figure 2
Size of Company Represented by Participants
The selection of interviewees reflected a deliberate effort to capture a broad spectrum of
experiences and perspectives from individuals (Creswell W. & Creswell D., 2018) who directly
encountered the effects of downsizing within their roles in Class 1 railroad companies. Their
varied backgrounds, roles, and experiences offer a rich backdrop of insights into the varied
impacts of downsizing on employees within the railroad industry. This diverse representation
allowed for a comprehensive understanding of the challenges, coping mechanisms, and
perceptions of survivors post-downsizing.
How Downsizing Impacts Morale, Engagement, and Loyalty
This section answers the research question: How does corporate downsizing affect the
morale, engagement, and loyalty of employees who remain with the organization? It was

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answered through the lens of Bronfenbrenner’s ecological systems theory based on the
microsystem influences (Bronfenbrenner, 1981). The aspect delves into the intricate interplay of
internal factors within the organizational sphere following downsizing events, deciphering the
multifaceted impacts of microsystem elements on survivor motivation, methodically exploring
the ramifications of altered work environments, communication breakdowns, and the
consequential effects on employees’ mental well-being and job satisfaction. This tenet pivots
towards a profound exploration of the microsystem’s internal dynamics, dissecting its
components to unravel their direct and indirect implications on motivation levels. The core of
this inquiry is investigating work environment alterations, communication pitfalls, and resultant
impacts on mental health, job satisfaction, and trust. Understanding this phenomenon is
imperative within the context of organizational restructuring and downsizing. As survivors
navigate post-realities, comprehending how their immediate work settings, communication
channels, and interpersonal trust dynamics affect their motivation is pivotal in crafting strategies
for organizational resilience and employee well-being. The effects of downsizing can have a
profound impact on the morale of employees who endure the restructuring process. Surviving
employees may experience a range of emotions, such as uncertainty about their future, an
increased workload due to reduced staff, and the loss of colleagues. This pervasive sense of
instability and anxiety can lead to a significant decline in workforce morale. The organizational
restructuring not only reshapes the company's structure, but it can also leave a lasting impression
on the emotional well-being of those who remain. These employees must navigate the challenges
of adapting to a changed work environment while coping with the psychological toll of
downsizing. The microsystem intricately weaves the fabric of survivor experiences. Through this
dissection and comprehending these elements, organizations can glean insights into fostering a

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supportive, communicative environment conducive to rebuilding trust and bolstering survivor
motivation. The subsequent subsections illustrate the findings on these tenets.
Work Environment and Role Changes
The study’s data demonstrate the aftermath of downsizing events significantly altered the
work environments of survivors within the railroad industry. These changes manifested notably
through more roles and increased responsibilities. Interviewees consistently reported drastic
alterations in their job roles following downsizing. They found themselves shouldering increased
responsibilities due to the departure of colleagues, often performing tasks outside their usual
scope. This abrupt shift resulted in a challenging adaptation period, straining personal and
professional capacities. One of the respondents, P1, highlighted the significant change of role
and responsibility after the downsizing event and later. According to P1,
I ended up taking a job that it was in a training group, but at the same time, it really
wasn’t my ideal job. It was I was able to stay employed. It was an interesting group about
training in new technology. I ended up going around the system to a hundred or so remote
sites.
This signifies the critical changes that P1 had to undergo due to the changes. However, five years
later, as P1 confirmed:
After about two and a half years of that, I was at a site, and I ran into one of my old
friends who was still working as a training instructor and found out that they were looking for
training instructors again. So, I was able to go back to my old job after about five years and get
back into the training group, which I continue to work in training now.
Therefore, these role and responsibility changes highlight a pivotal sweep in the interview.

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Other individuals reported that their roles or job titles remained the same, but their
responsibilities changed drastically because of an inadequate workforce. P5, primarily involved
in teaching student engineer courses across the system, reported they took on more
responsibilities at a local level. This change was necessitated by a lack of available personnel to
handle these tasks. The respondent noted a growing awareness of gaps in the existing processes,
attributing these to a significant loss of experience and knowledge within the company. The
individual emphasized the challenge of compensating for this loss and maintaining the same
level of expertise and knowledge within the organization.
The downsizing event had created lacunas in diverse roles, and therefore, the remaining
staff had to fill those gaps to keep their organizations running. P5, responding to the same
question, admitted that “It increased workload. Obviously, when you cut people from a
department, people are going to have to pick up the slack because they cut the bodies from cut
numbers from our headcount, but the work didn’t stop.” With a reduced workforce,
responsibilities were multiplied, keeping the remaining staff more involved than they were
previously. Survivors grappled with multifaceted role modifications, extending beyond their
expertise or designated responsibilities. The suddenness and breadth of these changes led to
heightened stress and a profound sense of uncertainty regarding their adjusted roles.
P3 noted that about 20% of their workloads had doubled or tripled. Cutting the workforce
from 157 to 32 people responsible for the same or slightly fewer responsibilities showcases how
demanding their services must have been, struggling to meet the anticipated goals with minimal
muscles. They quote, “…And so literally a fifth of the workforce and we’ve more doubled and
for some years tripled the number of students that we’ve had over the last few years.” These
tenets align with another P7’s nuances, noting:

59
After the downsize, pretty much picking up the pieces from everyone else and what they
have done, and it is actually starting up again. So, after the downsize, there was more
work and less time to do the work because of the expectations and different things that
we were planning to do. And it was pretty much treating everyone like, okay, well not
that you deserve the job, we will be happy you have the job.
This aspect illustrates a scene of default settings where individuals feel like they had just been
reinduced into their working environment. Such destruction significantly impacts an individual’s
morale and downsizes their output.
However, two participants cited a positive impact on their roles and responsibilities
resulting from the downsizing event. Notably, P1 and P8 said the event relieved them of their
workload since no recruitments or new employees were employed. They acknowledge the
activity as having helped them delve deeper into their roles, as they had previously neglected
some rules and procedures since their roles were minimal or already covered by others.
Specifically, following the company's downsizing, an employee returned to their original craft,
seizing the opportunity to familiarize themselves with specific rules and procedures not regularly
used in their previous role. This transition was viewed as a chance for continuous learning and
personal development. The employee expressed a commitment to gaining new knowledge daily,
using this approach as a guiding principle in their daily work activities.
Stress and Uncertainty
The study interview responses demonstrated that increased stress stemming from role
modifications post-downsizing took a toll on survivor motivation. The abrupt imposition of new
responsibilities, often without adequate training or support, overwhelmed many interviewees.

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This stress induced by the uncertainty of navigating unfamiliar tasks contributed to diminished
motivation levels among survivors.
P8 cited critical mental health impacts post-downsizing. They cited that they became
anxious when asked about the impact of the event on their mental health. They noted:
Everybody’s walking on pins and needles and going, oh, am I next? And definitely
following the downsizing. How do you keep afloat with the workload? I got to admit, I’m
relatively fortunate in that regard because there’s some field employees that are friends of
mine that I don’t know how they do it.
This continued contemplation and impact significantly shaped the output they would
render. They continued to cite that their changing work patterns had affected most of their
normal activities, shortening their sleep time and giving them no rest. They shared having to
work past the normal hours to meet their tasks while giving up their days off and vacations. P3
agreed, “[It] had a large effect on a lot of people, and even a handful of instructors that have gone
out on a short term due to the mental stress of worrying and scheduling, and the being gone when
we downsized. You remember the comp time; you’ve got compensated for time. “The participant
shared how these heavily loaded work schedules denied them a chance to spend time with their
families, forcing them to work even on weekends to meet their objectives. To others, it was more
than psychological trauma. Another individual acknowledged the significant impact of stress on
their mental and physical well-being. They described how it took a toll on their physical health,
resulting in intestinal problems that necessitated three surgical procedures. Although they
recognized the immense stress they were under, they maintained a sense of self-confidence and
resilience throughout the ordeal. Despite their belief in their inner strength, they acknowledged
the tangible physical effects of the stress they had endured.

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This reported outcome showcases the critical impact untimely downsizing can have on
people. It went further to instill more pain when some of them had to go for unpaid weeks off.
However, the same participant agrees that such an instance is ideal for creating self-realization
and appreciating one’s own life, as the instance becomes a reminder of the existence of self
besides the company. Worries and uncertainties gloomed the paths of the affected individuals.
P3 said that such ground brooded negativity and numerous impacts. P3 said:
Oh, my goodness. So mental health, you have so many things on your mind, not only to
do the right job, but then you got to think, what’s your backup plan? Am I going to be the
one that cuts Is am I going to lose my house? …So, there’s a huge amount of stress in my
area. I used food as a comfort source, so I got big and heavy. I got up to about 345
pounds, which was extremely heavy for me. But yeah, it’s a psychological mind screw.
These responses showcase the accurate picture of the hardships that the downsizing survivors
navigate until they can run an everyday life, which, according to most of the respondents, takes a
long time. The psychological trauma associated with corporate downsizing impacts those directly
affected by job loss and significantly affects the survivors of the downsizing event—the
individuals who remain employed. The respondents often grappled with a unique set of
challenges, including survivor guilt, increased workload and job responsibilities, fear of future
layoffs, and a pervasive sense of workplace insecurity. Witnessing colleagues and friends losing
their jobs can evoke feelings of anxiety and survivor's guilt, as survivors may question their own
worthiness and fear a similar fate. The increased workload, often accompanied by uncertainty,
leads to heightened stress levels and burnout. This aspect of the psychological toll of downsizing
on survivors is a crucial area of study, as it sheds light on the broader impact of organizational
restructuring on the overall well-being and mental health of the workforce.

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Communication and Trust Issues
Another critical facet within the microsystem that profoundly impacted survivor
motivation was the quality of communication and trust within the organizational framework. The
findings highlighted a distinct lack of transparent and effective communication from upper
management during downsizing. P1 highlighted the absence of formal and timely
communication regarding downsizing. According to P1, the reliance on rumors and the absence
of structured communication channels led to confusion and anxiety among employees. The
abruptness of job eliminations without prior notice compounded the stress and uncertainty,
significantly affecting motivation levels. Responding to the organization’s information
dissemination method, P2 stated “it was kind of non-existent. There were a lot of rumors going
around on a formal level. I don’t recall a lot of it. A lot of this issue being addressed. It was just
like, Hey, you’re lucky to have a job.”
P10 mentioned a delay in receiving pertinent information, resulting in heightened
uncertainty. The lack of clear communication and the ambiguity preceding the formal
announcement contributed to elevated anxiety levels, impacting motivation. The respondent
conveyed that apart from some informal rumors circulating among colleagues, there was a
pervasive sense of awareness that something significant was transpiring within the organization.
Subsequently, to the best of their memory, a collective communication was issued, urging
everyone to participate in a meeting to execute precisely what they had previously been informed
would occur. P10 also stated that employees received little to no information or warning about
impending changes, leading to confusion, anxiety, and a profound sense of insecurity regarding
their positions within the company. The interviews also revealed a direct correlation between the
lack of transparency in communication and the erosion of trust among survivors.

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P6 articulated receiving generic and vague information from the company postdownsizing. The absence of substantive details or transparent dialogue regarding the reasons
behind the cuts contributed to a pervasive sense of dissatisfaction and disengagement among
survivors. P5 stated: “The company response was very little at best. I mean, it was basically we
went through and made some changes, and I don’t remember how they worded it, but it was very
generic. It didn’t really get into anything.”
According to these responses, the lack of transparent and direct communication strategies
directly impacted trust levels within the organization. Survivors expressed distrust and
disillusionment towards the company’s motives and authenticity. P7 declared: “It was really after
the fact. There was nothing prior to you. As soon as the days came that the cuts were made and
people were given their options to leave, or however the process went for them.” The absence of
clear communication channels and the ambiguity surrounding the downsizing decisions resulted
in heightened stress levels among survivors. According to them, the lack of guidance and
information led to disengagement and detachment from the organizational objectives,
significantly impacting motivation. The breakdown in communication during downsizing events
directly contributed to a widespread erosion of trust among survivors. Respondent's accounts
report the absence of transparent communication from the organizational leadership, which led
employees to question the company’s motives and authenticity. The lack of transparency during
decision-making, as respondents accounted for, deepened the divide between employees and
management. Survivors perceived a disconnect between their concerns and the company’s
priorities, leading to a significant erosion of trust in the organization’s leadership.

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Impact on Morale and Motivation
Based on the study’s results, the impact of the downsizing event on job motivation within
the railroad company proved to be multi-layered, drawing out a complex amalgamation of
emotions and responses among the employees navigating the aftermath. The narratives gleaned
from the interviews unveil a spectrum of emotional and psychological reactions, encapsulating
the varying degrees of dedication and commitment individuals experienced in the wake of the
downsizing. P3 accounted:
Well, I’m having a hard time answering that one, and because of this, I don’t like failure.
So, I have to try and do that much more to accomplish the same thing. They don’t care
how well they’re trained. They want to be able to show on paper that they’re trained. And
so, yeah, it’s hard to not hit that. I don’t have an attitude.
They conveyed a palpable frustration over the company’s shift in priorities postdownsizing, expressing profound dismay at the perceived deviation from emphasizing quality
and competence in employee training. According to P4, the alteration in the company’s approach
resulted in a decline in motivation, reflecting a growing disconnect between the company’s
objectives and the significance of comprehensive employee training. P4 expressed, “It has driven
me to be constantly looking for a possible landing spot... takes away from you devoting yourself
to your job to whatever your position is at the time.” P4 also affirmed, “How does it affect job
motivation? It’s like you’re waiting on it to happen again. So, you can’t express or do what you
need to do to the ability. Now you’re just doing it as a puppet.”
The downsizing event was a catalyst for some individuals, compelling a perpetual quest
for alternative job opportunities. This perpetual uncertainty prevailing within the company led
these employees to invest significant time and energy in exploring other job prospects,

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potentially diluting their commitment and focus on their current roles. Numerous interviewees
expressed a sense of constraint in their roles post-downsizing, describing a feeling of being
marionettes merely complying with instructions to preserve their employment. This perceived
curtailment of autonomy hindered their intrinsic motivation, impeding their ability to express
themselves fully within their roles. In light of the circumstances, it is evident that engagement
levels experienced a noticeable decline across the board. This decline was particularly prominent
during a period when heightened apprehension prevailed among individuals. Many employees
were preoccupied with the looming possibility of workforce reductions, prompting them to
formulate contingency strategies. These contingency plans ranged from considering alternative
career paths to outlining specific courses of action in the event of job loss.
Despite lowered engagement levels and pervasive apprehensions regarding job security,
certain individuals persevered in maintaining their enthusiasm for their roles. Despite
overarching concerns about potential downsizing events and decisions made at the executive
level, their inherent commitment to their professional domains remained unwavering.
Impact on Satisfaction
The results showcase the downsizing event greatly influenced employee job satisfaction,
significantly altering their perceptions, contentment, and long-term career considerations. These
interview narratives provided a glimpse into the nuanced responses concerning job satisfaction
following the downsizing event. P12 revealed a contrasting perspective on job satisfaction,
expressing, “I don’t know. It’s making me consider staying in the organization long-term, to be
honest with you.” This contemplation reveals a pivotal shift in their career outlook postdownsizing, suggesting an inclination towards a more extended tenure within the organization.
The juxtaposition between considering a prolonged stay and acknowledging improved mental

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health post-military service illuminated a complex evaluation of job satisfaction within a
changed work landscape. Contrastingly, P7 depicted a more positive transformation in their role
post-downsizing, stating, “It really hasn’t affected it, actually.” Their assertion highlighted an
unexpected enrichment in their job satisfaction, stemming from the opportunity to diversify their
role due to the staffing alterations post-downsizing. This shift allowed them to engage in more
roles in the organization, aligning with their professional aspirations and contributing to
heightened job satisfaction.
P4 reported an evolution in their job satisfaction trajectory, elucidating, “Initially? It
really, initially, I would say that my plans were to stay at the company I’m with for the next year
were about 50%. I was actively looking outside of the organization for opportunities that have
since changed.” This candid reflection delineated an initial wavering commitment that eventually
solidified, attributed to a post-pandemic shift and a rekindled passion for their current role,
subsequently enhancing their job satisfaction. In contrast, P8 articulated a diminished sense of
job satisfaction, candidly sharing, “I don’t even know how to answer that one. I don’t enjoy the
job anymore.” Their disillusionment and loss of satisfaction were palpable, echoing a sentiment
of disillusionment and emotional disengagement from their role post-downsizing.
Moreover, P1 voiced a profound dissatisfaction, stating, “You almost feel like what
you’re doing, where you once took pride in what you did, you almost feel like it’s a waste of
time that you’re just going through the motions.” This sentiment underscored a sense of
despondency, reflecting a diminished sense of purpose and fulfillment within their role, leading
to an inevitable decision to retire. These diverse accounts highlight the intricate and often
contrasting ways downsizing impacted job satisfaction among employees, ranging from

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unexpected career enrichment to emotional disengagement and a reassessment of long-term
professional aspirations.
Impact of Downsizing on Organizational Culture
The research question addressed in this part is: How does downsizing impact
organizational culture from the perspective of survivors? In exploring the impact of corporate
downsizing within the organizational framework, Bronfenbrenner’s system’s mesosystem
encapsulates the immediate environment where employees navigate shifts in workload,
collaboration dynamics, and interpersonal relationships. This section critically examines how
these mesosystem factors influence survivor motivation and job satisfaction following
downsizing events. The subsequent analysis of company-wide communication, alterations in
workload and relationships, and collaboration dynamics endeavor to unravel the intricate
influences shaping survivor motivation within the organizational setting. It delves into
contrasting dynamics between immediate team interactions and broader organizational shifts,
aiming to unveil the nuanced impact on employee motivation post-downsizing.
Communication and Collaboration
The findings reveal that navigating the turbulent terrain of organizational downsizing is
intricately intertwined with the efficacy of communication channels and employee collaborative
efforts. Respondents showcase that in the event of downsizing, the quality and extent of
communication significantly influence employee perception, morale, and adaptive strategies.
This section scrutinizes the intricacies of company-wide communication during downsizing and
examines the contrasting effects observed in increased collaboration among immediate
colleagues. The post-downsizing landscape often revealed a tapestry of inadequacies within
organizations. Interviews with survivors unveiled a disconcerting narrative punctuated by the

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absence of structured, transparent protocols during critical junctures. Recollections from
interviewees depicted inadequate or ambiguous information dissemination, abrupt
announcements, and a noticeable scarcity of formal, reassuring statements from organizational
leadership. Reflecting on these experiences, P2 lamented, “I don’t know, kind of non-existent?
There were a lot of rumors going around on an informal level. It was just like, Hey, you’re lucky
to have a job... They had a security guard come over and escort you off the premises.” Such
tenets underscore the lack of structured and informative communication strategies during
downsizing, leaving employees with uncertainty and disarray.
P4, answering the same question, said:
They didn’t communicate that. So just like on the railroad, they say, how do you get
information across the United States? You telegraph, telephone, television, or tell a
railroader. So, there was a website that was called the layoff reports.com or layoff report.
And so there would be people you could log onto this anonymously. So, we were all
glued to that to see if we were going to lose our jobs and when it was coming. And that
was when, I believe that was, I’m not sure. I don’t really know...But yeah, they did not
communicate that. And then the way that they furloughed managers or cut managers, and
managers could go back to the craft is you would just call ’em in for a meeting. And this
was when I was a manager.
Furthermore, P9 expressed, “It would come out in some different calls... after those
things happened, it was more of an excuse saying, oh, we’ve done this because of this, and not
saying, hey look, we’re going to have this coming up on this day. So, people could prepare for
anything.” This highlights the lack of proactive communication, where critical information often

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surfaced only past the actual events, leaving employees without the opportunity to prepare or
brace themselves for impending changes.
Amidst company-wide communication inadequacies, a contrasting narrative emerged
within the microcosm of immediate team dynamics. Interviews revealed a heartening surge in
collaborative efforts among smaller work units—a testament to resilience and solidarity amidst
the adversity of downsizing. While organizational communication faltered, intensified
collaboration and cohesion within immediate teams were a beacon of support and adaptation.
Expressing the resilience born from collaboration within immediate teams, P4 reflected, “The
day the new COO was announced... let us tell you what’s going to happen... I sat in year and a
half’s time and watched every single thing that they said come to fruition.” This highlighted the
contrast between the agility and united front of smaller team units against the broader
communication deficiencies witnessed at the organizational level.
Changes in Workload and Relationships
Often, downsizing ushers in a dynamic shift in workload distribution (as previously
discussed) and the fabric of relationships within the organizational landscape. This segment
delves into the repercussions of an augmented workload on job satisfaction and motivation,
further juxtaposing the transformations in relationships observed within immediate teams against
the broader organizational dynamics. Survivors unveiled a pervasive consequence of downsizing:
a surge in workload as employees grappled with the aftermath of job cuts and organizational
restructuring. The increased workload emerged as a pervasive theme, narrating tales of stretched
capacities and overwhelming responsibilities. P1 highlighted, “Before the downsizing, I had a
role involving content ownership and legal responsibilities for new hires... after those jobs were
cut, my workload increased exponentially. I was managing tasks previously handled by a team.”

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Such accounts underscored the tangible strain experienced by employees, often affecting their
job satisfaction and overall motivation. The overwhelming workload post-downsizing increased
stress and impeded employees’ capacity to derive satisfaction and motivation from their roles.
P11 reflected on the altered dynamics post-downsizing, acknowledging a stronger bond
among survivors and an enduring lack of trust at an executive level: “There is some commonality
among those of us... but the trust, it’s just not there. I don’t really see the trust ever coming
back.” P5 emphasized a pervasive sense of mistrust and defensiveness among coworkers
resulting from the downsizing-induced stress, stating, “With my coworkers, it put me in a spot
where I felt like I couldn’t trust anybody because everyone, I don’t want to say everyone knew,
but some people know what’s going on and it’s a lot more politicking going on so people can try
to keep their jobs. So, it puts me in more of a defensive state with my coworkers most of the
time.” P2 highlighted the general stress and potential conflicts among coworkers, suggesting the
downsizing created a competitive atmosphere for the limited remaining positions. P2 declared,
“You put a group of people together, and you put them in a very stressful situation, and those
things are bound to happen. And I think, in some cases, you could be made to feel like you’re
competing with your fellow workers for whatever few spots are left.”
P8 delineated a split in relationships: an increase in bonding within immediate teams but
a divisive effect across the broader company structure, stating, “Immediate coworkers and teams,
the effect was positive... where I would’ve expected to see that go company-wide, it really split.
It split the groups up more.” P3 described the paradoxical effect of increased closeness among
specific groups of coworkers amidst a broader atmosphere of mistrust, likening the experience to
a sense of unity under fire: “Well, our relationship was a little bit tighter... We pulled our close
friends in closer and talked... So, it was just a family event, is what it was.”

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Amidst the tumult of increased workload and organizational restructuring, a dichotomy in
relationship dynamics emerged. Within the confines of immediate teams, camaraderie and
mutual support surfaced—a unified front in coping with the challenges posed by the downsizing
aftermath. P8 remarked, “Increased class sizes due to downsizing led to inadequate training time,
impacting both instructors and employees. The downsizing drastically affected job satisfaction
and motivation.” This highlighted the palpable impact of downsizing-induced workload surge on
job satisfaction, signaling a stark contrast from the pre-downturn levels. Contrarily, a narrative of
strained relationships and a sense of detachment from the broader organizational structure
surfaced beyond the immediate team dynamics. According to the study responses, the surge in
workload, paired with organizational uncertainties, led to a palpable erosion of trust and
camaraderie within the broader organizational sphere.
The interview responses portray how external forces, notably the COVID-19 pandemic
and broader economic fluctuations, profoundly influenced the downsizing process and
organizational culture. P5’s experience emphasized the multifaceted effects of downsizing,
highlighting the spike in employee stress levels due to job elimination and the subsequent neglect
of essential functions due to workforce shortages. This resulted in a shift in the company’s focus
from safety and efficiency to profitability, leading to a collective loss of employee trust.
However, P6 presented a contrasting viewpoint, acknowledging the complexities involved in
suggesting organizational improvements while maintaining a resilient stance despite challenges.
Their narrative underscored the retained trust and motivation despite acknowledging the
downsizing’s impacts on communication, relationships, and mental health.
P6 highlighted the significance of transparent communication and empathetic treatment
from the organization during the downsizing, emphasizing the pivotal role of respectful and open

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dialogue in curbing adverse cultural shifts. P10’s perspective brought attention to the crucial role
of transparency and honesty in shaping organizational values and strategies during downsizing,
emphasizing the adverse effects of eroded trust in executive leadership post-downsizing. Yet P5
stresses the importance of emotional intelligence in leadership and the need for reassurance and
supportive communication during downsizing, advocating for an empathetic approach from
management. Still, P1’s forecast of another potential downsizing event stemmed from the
aftermath of increased workload, stress, and inadequate communication during the initial
downsizing, leading to a profound lack of trust in the organization’s decision-making.
P10 echoed the stress and uncertainty during downsizing, attributing diminished job
satisfaction and trust to inadequate communication and unpredictability, advocating for enhanced
communication and employee support mechanisms. P8’s experience highlighted the drastic shift
in employee perceptions post-downsizing, underscoring the erosion of trust and job satisfaction
due to the company’s perceived disloyalty and lack of transparency. The narratives collectively
highlighted the influential role of external factors in reshaping the organizational culture during
downsizing. They underscored the significance of communication, transparency, and empathy as
crucial elements in alleviating negative cultural shifts. P11 expressed their perspective,
suggesting that an improved communication strategy would be an initial step in addressing the
situation. They emphasized the importance of receiving clear and reasonable expectations
regarding future developments. Furthermore, they pointed out that the workforce was
accustomed to going above and beyond to fulfill their job responsibilities, primarily with the
anticipation that as long as they remained dedicated and performed their duties diligently, job
security and the prospect of a stable retirement would be assured.

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Impact on Overall Organizational Culture
The findings reveal that downsizing events triggered a profound metamorphosis in the
organizational culture, resulting in reduced trust, altered priorities, and diminished job
satisfaction. The interview responses consistently portrayed the erosion of trust and changes in
perceptions regarding company loyalty, ethics, and priorities as fundamental outcomes of the
downsizing events. The interviews reflected a pervasive disillusionment and skepticism among
survivors, attributing the trust deficit and altered perceptions to the organization’s handling of the
downsizing process. P1 accounted that their job satisfaction was immensely affected:
Initially? It really, initially, I would say that my plans to stay at the company I’m with for
the next year were about 50%. I was actively looking outside of the organization for
opportunities that since changed. We’re post covid now; the opportunities are there.
Instances of indiscriminate layoffs, lack of transparency, and leadership shortcomings
emerged as critical factors contributing to this negative cultural transformation. The interviews
also highlighted the divergent experiences among individuals. At the same time, some managed
to maintain cohesive connections within their immediate teams, but the broader organizational
structure experienced a decline in trust and cohesion. Transparency, effective communication,
and empathetic leadership emerged as pivotal elements that, if present, could have significantly
influenced a more overall positive culture.
Summary of Findings
The interviews conducted post-corporate downsizing in railroad companies unveiled the
survivors’ complex experiences and perceptions. These narratives collectively illuminated the
profound impact of downsizing on multiple facets of the organization and its employees. Across
interviews, a recurrent theme emerged regarding the erosion of trust in the organization post-

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downsizing. The lack of transparent communication during the downsizing process was a shared
grievance, leaving employees disoriented and disillusioned. The shift in organizational priorities
from safety and quality to short-term gains led to a substantial loss of faith in the company’s
integrity and ethics. The downsizing event was perceived as a catalyst for a cultural shift, where
efficiency and safety took a backseat to immediate financial gains, thus fostering a pervasive
sense of insecurity and skepticism among employees.
The increased workload resulting from downsizing was a prevalent concern, impacting
employee job satisfaction and motivation. While some individuals experienced an augmented
workload, assuming additional responsibilities after staff reductions, others found themselves
working in a divisive environment, witnessing fragmented teamwork and limited collaboration
across departments. A paradoxical effect was observed within immediate teams, where increased
bonding and mutual support thrived amidst the broader organizational fragmentation. The event
yielded divergent effects on job motivation and satisfaction. Some employees expressed
resilience and adaptive behavior, finding new purpose, or embracing newfound opportunities due
to role diversification post-downsizing. However, a significant portion experienced a decline in
job satisfaction stemming from feelings of disillusionment, emotional disengagement, and a loss
of trust in the company’s vision and values.
The experiences shared by employees following the downsizing event within the railroad
companies offer a profound illustration of Bronfenbrenner’s ecological system theory, delving
into the complex impacts across different levels of their environment. Within the microsystem -
the immediate work environment - the repercussions were intense. Colleague relationships
underwent discernible shifts, resulting in heightened stress, increased defensiveness, and notable
alterations in communication dynamics. While some teams exhibited strengthened bonding in

75
response to the downsizing-induced pressures, others experienced a sense of isolation, impacting
trust and interaction dynamics within these smaller groups.
Examining the mesosystem - the connections between various microsystems - revealed
considerable disruptions in leadership collaborations. The downsizing process showcased a flaw
existent between and among departments, fostering organizational silos that impeded effective
communication channels. Individuals reflected blurry lines of command during the process. This
fragmented landscape hindered the overall coordination and synergy necessary for cohesive and
collective success. Shifts in the company’s priorities away from safety and efficiency towards
short-term profit-making contributed to an erosion in trust. Employees perceived neglect of their
well-being, impacting job satisfaction, motivation, and their perception of the company’s ethical
conduct. The event triggered substantial company culture changes, mirroring broader societal
influences. Employees’ diminishing trust in the company’s values and leadership, coupled with
heightened job insecurity, highlighted a stark contrast between the overarching company culture
and the realities experienced by its workforce.
The downsizing event acted as a catalyst, influencing multiple ecological systems. Its
impact was evident in relationships, communication patterns, and trust levels - both within the
organization and in response to external factors. The application of Bronfenbrenner’s ecological
system theory provides a comprehensive framework for evaluating the dynamics at play during
and after a significant organizational transition (Bronfenbrenner, 1981).

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Chapter 5: Recommendations and Conclusion
Corporate downsizing, an organizational strategy intended to enhance financial standing
by restructuring the workforce, has been a persistent practice across industries (Schenkel &
Teigland, 2017). Within this context, this study has delved into the profound repercussions of
downsizing on survivors within the U.S. railroad industry. The overarching purpose of this
research endeavor was to explore the lived experiences of survivors through the lenses of
Bronfenbrenner’s ecological system theory. By engaging with the survivors’ narratives, this
study aimed to distill practical recommendations to alleviate the harmful impacts of downsizing
on employees. The research questions being addressed were:
1. How does corporate downsizing affect the morale, engagement, and loyalty of employees
who remain with the organization?
2. How does downsizing impact organizational culture from the perspective of survivors?
These queries are pivotal in unraveling the nuanced interplay between individual
motivations and the systemic influences emanating from organizational restructuring within the
railroad industry.
Discussion of Findings
This section provides a comprehensive understanding of the key findings from the study
on the impact of corporate downsizing in railroad companies. This discussion aims to shed light
on the dynamics at play within organizations undergoing downsizing and explore the
implications of such processes. It addresses research questions that guided the study, offering
insights into how corporate downsizing affects the morale, engagement, and loyalty of
employees who remain with the organization and how it influences organizational culture from
the perspective of survivors. By connecting the findings to the broader literature and theories

77
presented in Chapter Two, the research offered a nuanced perspective on the consequences of
downsizing within organizational contexts. The findings pave the way for meaningful
recommendations to assist organizations in navigating the challenges posed by downsizing while
preserving the well-being and culture of their workforce.
Impact on Employee Morale, Engagement, and Loyalty
The findings revealed a complex interplay of factors within the microsystem following
downsizing events that affected employee morale, engagement, and loyalty. The impacts on
survivor motivation are broad, and this research methodically explored the ramifications of
altered work environments, communication breakdowns, and the consequential effects on
employees' mental well-being and job satisfaction. The study findings align with and support
existing literature, which often highlights the challenges faced by employees who survive
downsizing events. The drastic alterations in job roles, increased responsibilities, and the need to
fill the gaps left by departed colleagues all resonate with prior research (Datta et al., 2010;
Marques et al., 2011). The heightened stress and uncertainty associated with these role changes
have been consistently documented in the literature (De Cuyper et al., 2012; Maertz et al., 2010;
Meyer et al., 2002). As the findings showcase, such aspects reduce employee morale.
Moreover, the findings corroborate the negative impact of downsizing on employee
mental health. The increased workload, longer hours, and loss of work-life balance reported by
participants mirror the stressors identified in numerous studies (Cameron, 1994; Marques et al.,
2011). The physical health issues reported by some participants underscore the far-reaching
consequences of downsizing (Meyer et al., 2002). In terms of engagement, the study echoes prior
research on the importance of transparent communication during downsizing (Cascio, 2004). The
absence of clear channels and the reliance on rumors resulted in confusion and anxiety among

78
participants, consistent with De Cuyper et al. (2012). Furthermore, the erosion of trust we
observed aligns with studies emphasizing the pivotal role of trust in maintaining employee
commitment (Marques et al., 2011). The study's findings regarding role changes, stress, and
uncertainty following downsizing are consistent with similar research conducted in various
organizational contexts (Cascio, 2004).
These findings align with the existing research, highlighting that downsizing events
negatively impact employee engagement, morale, and loyalty. This study provides robust
evidence that corporate downsizing does indeed have a detrimental impact on employee morale,
engagement, and loyalty within the railroad industry. The intricate dynamics of the microsystem,
coupled with the challenges posed by role changes, stress, and communication breakdowns,
collectively underscore the need for organizations to approach downsizing with caution and a
focus on employee well-being. These findings serve as a foundation for subsequent discussions.
Impact on Organizational Culture
The study findings showcase a critical impact of corporate downsizing on the
organizational culture. The tenets of an organization’s culture, as shown in this research,
encapsulate communication, collaboration, and relationships with a direct impact on trust,
priorities, and job satisfaction. This study revealed that clear communication from the leadership
and among individuals is critical during and post-downsizing events. This tenet is closely
intertwined with collaboration that should be a priority while conducting any organizational
change. Participants consistently underscored the failure of organizations in putting up clear
channels for communicating the events, expected adjustments, or probable layoff, which left
them unsure of their roles and positions in the companies.

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Such tenets, as backed by the literature review, predict poor trustworthiness, especially
against management, and gives employees reasons to change their priorities. In the long run, the
employees will invest in diverse concentrations and lose morale while showing signs of leaving
the organization. Work relationships are essential, for the overall organizational performance,
when the process is as aforementioned, staff members are left hanging decision-wise, and they
do not know what to expect of their colleagues or themselves. While some teams may become
more cohesive, others are divided into cohorts based on rumors and probably job track that
predicts their continued being at the workplace. Others collaborate more to ensure higher output
due to reduced workforce that requires more working hours and dedication. However, the stress
of having to cover for other roles and positions ignites low job satisfaction.
The findings resonate with existing research on the impact of downsizing on
organizational culture. Downsizing, often viewed negatively by employees, tends to erode trust
and cohesion within organizations (Cameron, 1994; Datta et al., 2010). The breakdown in
communication we observed aligns with studies emphasizing the role of effective
communication in preserving organizational culture during turbulent times (Mujtaba & Senathip,
2020). This study's findings align with similar research in highlighting the challenges faced by
organizations in preserving their culture during downsizing (Driskill, 2018; James et al., 2020).
The erosion of trust and the breakdown in communication observed in the current study
corresponds to documented consequences of downsizing on organizational culture (De Cuyper et
al., 2012; Mujtaba & Senathip, 2020). Additionally, this study echoes previous research
indicating that downsizing can lead to increased job insecurity and decreased organizational
commitment (Cameron, 1994).

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The study participants were a well-balanced mix of management and union employees.
It's worth noting that two management participants pointed out the event's positive impact on
reducing workload, attributing it to the absence of new hires or recruitments. These managers
recognized the event as an opportunity to explore their roles more deeply, acknowledging the
neglect of certain rules and procedures due to minimal responsibilities or overlapping coverage.
After the company downsized, a union employee seized the opportunity to return to their original
craft, actively involving themselves with specific rules and procedures not typically used in their
previous role. The employee embraced this transition as a pathway for continuous learning and
personal growth, expressing a daily commitment to acquiring new knowledge.
Interestingly, the study revealed a nuanced difference between management and union
participants in their responses to the downsizing event. Union members were less surprised,
given their pre-existing organizational distrust stemming from perceived injustices and prior
layoffs. This study highlights the intricate dynamics and differing perspectives within the
workforce during organizational changes.
These findings explicitly demonstrate the diversity of downsizing events’ impact on
organizational culture, partly supporting the research expectations that it would have a negative
influence. However, the study underscores the detrimental effects of downsizing on
organizational culture from the perspective of survivors in the railroad industry. The erosion of
trust, communication breakdowns, and the heightened sense of job insecurity collectively
contribute to a challenging organizational environment.
Interpretation Using Bronfenbrenner’s Ecological System Theory
The experiences shared by employees following the downsizing event within the railroad
companies offer a profound illustration of Bronfenbrenner’s ecological system theory, delving

81
into the complex impacts across different levels of their environment. Within the microsystem -
the immediate work environment - the repercussions were intense. Colleague relationships
underwent discernible shifts, resulting in heightened stress, increased defensiveness, and notable
alterations in communication dynamics. While some teams exhibited strengthened bonding in
response to the downsizing-induced pressures, others experienced a sense of isolation, impacting
trust and interaction dynamics within these smaller groups.
Examining the mesosystem - the connections between various microsystems - revealed
considerable disruptions in leadership collaborations. The downsizing process showcased a flaw
existent between and among departments, fostering organizational silos that impeded effective
communication channels. Individuals reflected blurry lines of command during the process. This
fragmented landscape hindered the overall coordination and synergy necessary for cohesive and
collective success. Shifts in the company’s priorities away from safety and efficiency towards
short-term profit-making contributed to an erosion in trust. Employees perceived neglect of their
well-being, impacting job satisfaction, motivation, and their perception of the company’s ethical
conduct. The event triggered substantial company culture changes, mirroring broader societal
influences. Employees’ diminishing trust in the company’s values and leadership, coupled with
heightened job insecurity, highlighted a stark contrast between the overarching company culture
and the realities experienced by its workforce.
The downsizing event acted as a catalyst, influencing multiple ecological systems. Its
impact was evident in relationships, communication patterns, and trust levels - both within the
organization and in response to external factors. The application of Bronfenbrenner’s ecological
system theory provides a comprehensive framework for evaluating the dynamics at play during
and after a significant organizational transition (Bronfenbrenner, 1981).

82
Recommendations
Based on the findings in Chapter 4, this section offers recommendations and practical
strategies for implementation. The subsequent sections elaborate on these aspects. Each of them
can be highly beneficial for the success of organizations. Given that the outcomes of the
interviews closely aligned with existing literature, these recommendations serve to bolster
established best practices in corporate downsizing, rather than addressing and rectifying an
identified situation.
Recommendation 1: Enhance Communication Strategies
The investigation into enhanced communication strategies underscores a critical facet
pivotal in the aftermath of downsizing events. This subsection encapsulates the imperative need
for transparently communicating within organizational restructuring contexts. It emphasizes the
resonance of messaging dynamics in ameliorating the adverse effects of downsizing on employee
well-being and organizational resilience (Driskill, 2018). Studies affirm that inadequate
messaging strategy exacerbates employee stress, lowers morale, and engenders a climate of
uncertainty within organizational settings post-downsizing.
The findings from the qualitative assessments illuminate a striking consensus among
survivors regarding the dearth of transparent communication during the downsizing process.
Survivors express profound dissonance attributed to insufficient or delayed communication from
organizational leadership, elucidating feelings of detachment and eroded trust (Mujtaba &
Senathip, 2020). Most were informally reached and informed about their exit from the
companies. Although the most affected are the laid-off, many participants noted experiencing
confusion and a sudden need to meet increased workloads. Others cited that there was no

83
communication they could perceive as such, but rather a disjointed line of command that caught
them unprepared. They noted having feelings of disrespect and not being considered.
Organizations must devise and execute a comprehensive communication blueprint to
foster a culture of trust and transparency in the aftermath of downsizing events. This approach
should encompass structured dialogues that enable an open and honest exchange between
leadership and employees (James et al., 2020). Through these lenses, leaders can impart a clear
vision for the future, elucidate the rationale behind the downsizing decisions, and assuage the
anxieties and uncertainties prevalent among the workforce (Driskill, 2018). A multi-channel
information dissemination strategy becomes quintessential. Organizations can ensure the uniform
dissemination of information by leveraging diverse communication channels such as town hall
meetings, internal newsletters, digital platforms, and regular face-to-face interactions (Griffin et
al., 2020). This approach addresses the informational needs of employees and caters to their
diverse preferences, fostering an inclusive environment conducive to understanding and
adaptability. They should establish a robust feedback mechanism. Encouraging and valuing
employee feedback empowers them and offers a platform to voice concerns, suggestions, and
apprehensions.
The proactive involvement of leadership is pivotal in this strategic recalibration of
communication paradigms. Leadership should disseminate information and actively foster a
culture of open discourse (Bravo & Egaña, 2017). Demonstrating transparency, accessibility, and
empathy in their communications can help leaders instill confidence and restore faith in the
organizational fabric. This concerted effort is foundational in rebuilding trust amongst
employees, mitigating uncertainties, and revitalizing their sense of belonging and commitment to
the organizational ethos (Mujtaba & Senathip, 2020). Ultimately, this multifaceted and inclusive

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approach serves as a linchpin in restoring organizational equilibrium and nurturing a resilient and
adaptive workforce capable of navigating the transformative aftermath of downsizing with
enhanced cohesion and confidence.
Recommendation 2: Foster a Supportive Organizational Culture
This research delineates the inextricable link between organizational morale and
cultivating a supportive ecosystem. The qualitative assessment illuminates a pronounced dip in
employee morale and satisfaction post-downsizing, laying bare the exigency for a paradigmatic
shift (Bravo & Egaña, 2017) and fostering a culture underpinned by empathy, acknowledgment
of employees’ intrinsic value, and an overt recognition of their contributions beyond mere
productivity metrics (Griffin et al., 2020). This necessitates organizational leadership to pivot
toward initiatives catering to employee welfare, including specialized counseling provisions,
robust mentorship programs, and a fundamental transformation of the ethos to underscore a
holistic value proposition for employees.
To cultivate a supportive organizational culture post-downsizing, concerted efforts should
be directed toward fostering a workplace environment that prioritizes employee well-being,
resilience, and inclusivity (Schenkel & Teigland, 2017). A supportive culture is a strategic
imperative that recalibrates organizational norms, values, and practices to fortify staff morale and
adaptability (Griffin et al., 2020). Drawing on the insights from the literature review and the
empirical findings in this scintilla, organizations should embark on a transformative journey to
embed empathy, support, and psychological safety into the organizational fabric.
A cornerstone of this endeavor is nurturing a culture that champions empathy and
understanding. Leaders must proactively engage with employees, demonstrating genuine concern
for their welfare and acknowledging the emotional toll that downsizing can take (Mujtaba &

85
Senathip, 2020). Organizations can mitigate the adverse effects of downsizing on the workforce
by fostering a climate of psychological safety—where employees feel secure to express their
opinions, voice concerns, and share their experiences without fear of retribution (Bravo & Egaña,
2017). Moreover, establishing support mechanisms, such as counseling services, peer support
groups, and wellness programs, can provide employees with avenues for emotional and health
support and guidance during turbulent times. This approach lays the groundwork for a resilient
and supportive organizational culture that endures beyond downsizing events.
Additionally, redefining organizational values to encompass resilience, adaptability, and
inclusivity is paramount. An adaptive culture acknowledges the inevitability of change and
actively engages employees in navigating transitions. It involves integrating change management
practices into the organizational focus, emphasizing the importance of agility and flexibility in
responding to dynamic landscapes (Griffin et al., 2020). Leaders play a pivotal role in modeling
adaptability, encouraging innovation, and fostering a growth mindset among the staff (Mujtaba &
Senathip, 2020). Organizations can cultivate an environment that thrives amidst adversities such
as downsizing by promoting a culture that embraces diverse perspectives, celebrates innovation,
and values continuous learning (Bravo & Egaña, 2017). This shift in culture from rigidity to
resilience is a cornerstone in preserving employee morale, bolstering organizational cohesion,
and fortifying the workforce against the tumultuous aftermath of downsizing.
Recommendation 3: Incorporate Employee Involvement and Participation
Empowerment through substantive employee involvement and participatory frameworks
emerges as an indelible mandate from this study. Survivors, post-downsizing, grappled with an
intense sense of disempowerment stemming from perceived exclusion from decisions directly

86
impacting their professional trajectory (Bravo & Egaña, 2017). Several strategies stand out as
pivotal in cultivating employee involvement and participation.
The establishment of diverse focus groups emerges as a strategic imperative. Findings
revealed a prevalent sentiment of disempowerment among survivors, indicating a need for
inclusive forums. These groups, comprising diverse employee demographics, can provide
platforms for voicing concerns, sharing perspectives, and participating in decision-making
processes (Schenkel & Teigland, 2017). As elucidated in the results section, they foster a sense of
inclusion and validate employee contributions, countering the post-downsizing
disenfranchisement experienced by many respondents.
Creating steering committees or task forces encapsulates an instrumental approach. The
study underscored the importance of collaborative engagements in the decision-making
framework. Task forces comprising cross-functional teams enable employees to engage actively
in strategy formulation, ensuring diverse viewpoints and facilitating a comprehensive approach
to organizational decision-making (Griffin et al., 2020). These committees reinforce a culture of
inclusivity and ownership, which is vital in post-downsizing recovery. It can help assuage
survivors’ morale and renew their motivation and job satisfaction.
Additionally, fostering open-door policies and regular meetings is a strategic avenue
highlighted by this research. Interviewees substantiate a pervasive need for enhanced
communication post-downsizing (Driskill, 2018). Open-door policies create an environment
where employees feel empowered to voice concerns, provide feedback, and engage in
meaningful dialogue with leadership (Mujtaba & Senathip, 2020). Simultaneously, meetings
serve as platforms for disseminating information, elucidating future organizational directions,
and engendering transparency.

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Another vital strategy highlighted by the study involves implementing suggestion
systems or idea boards. The research identified a prevalent feeling of exclusion from decisions
impacting survivors’ professional trajectories. Idea boards or suggestion systems provide tangible
avenues for employees to contribute ideas, solutions, and recommendations (Griffin et al., 2020).
They bridge the gap between management and staff, fostering a culture where employee input is
valued and considered.
Lastly, cultivating a culture of participatory decision-making processes is critical. The
study emphasized the importance of democratizing decision-making, resonating with the need to
empower employees through engagement in critical organizational decisions (Driskill, 2018).
This strategy manifests as a transformative shift toward a culture of inclusivity, ownership, and
collective responsibility, which is vital in post-downsizing recovery efforts. Employees must be
considered ideal stakeholders in downsizing and well-engaged in the post-events.
Recommendation 4: Ensure Long-term Planning and Development
The empirical study unmistakably underscores the poignant distress of calibrated and
foresighted long-term planning initiatives. The attrition of training and developmental
opportunities post-downsizing precipitated a discernible erosion in employee motivation and
proficiency (Carriger, 2018). Consequently, it is incumbent upon organizations to invigorate their
commitment toward sustained skill augmentation endeavors (Griffin et al., 2020). This envisions
a strategic recalibration manifested through robust training paradigms, the institutionalization of
mentorship conduits, and the crystallization of multifaceted career trajectory pathways.
The findings strongly advocate for implementing robust career development programs to
nurture employees’ growth and skill enhancement post-downsizing. Such programs offer avenues
for upskilling, retraining, and career progression, thereby mitigating uncertainty and fostering a

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sense of stability among the staff (Driskill, 2018). Respondents in the interview quoted having
suffered drastic psychological and, subsequently, physical trauma coupled with anxiety and
stress. They were worried about the following steps as downsizing, according to them, would
happen abruptly and curl them from their jobs. The study reveals the need to offer professional
development opportunities to employees affected by downsizing, emphasizing the need to invest
in their long-term career growth within the organization.
The study showcases the need for adaptable work structures and job redesign strategies to
accommodate changes post-downsizing. Introducing flexible work arrangements, job rotations,
and skill-based job assignments can counter the disruption caused by downsizing (Lovejoy et al.,
2021). Such strategies enhance employee motivation, job satisfaction, and long-term
commitment by providing avenues for professional growth within a transformed organizational
landscape (Schenkel & Teigland, 2017).
The significance of mentorship programs and succession planning frameworks in
ensuring a smooth transition post-downsizing is well underscored in the discrepancies within the
organizations represented in this study through the interviewees (Carriger, 2018). Mentoring
aids in retaining institutional knowledge, providing support to employees navigating changes,
and facilitating knowledge transfer between seasoned and newer employees (Driskill, 2018).
Simultaneously, succession planning mitigates potential leadership gaps, ensuring organizational
continuity and stability.
Promoting organizational stability through transparent and realistic goal-setting is also
integral. This strategy encapsulates clear objectives, delineates plans, and establishes attainable
goals aligning with the company’s long-term vision (Griffin et al., 2020). Fostering stability post-

89
downsizing mitigates uncertainties and aids in reestablishing trust in the organization’s future
trajectory.
The study shows a need for proactive investment in employee well-being and resilience
programs to support employees in coping with the aftermath of downsizing. Survivors suffered
psychological trauma, and the organizations were not bothered or responsible for assisting their
employees. Implementing wellness initiatives, stress management programs, and resiliencebuilding workshops align with the findings, addressing survivors' mental health challenges
(James et al., 2020). These programs bolster employee morale, aid in navigating change, and
promote long-term well-being in the post-downsizing landscape.
Limitations and Delimitations
As a researcher, it is essential to acknowledge the limitations and delimitations of a study
to ensure that the findings are interpreted accurately. Limitations may impact the validity of
research findings but are outside the researcher's control. On the other hand, delimitations refer
to the boundaries set by researchers for their study. These can include time, geographic location,
research design, or other factors that narrow the scope of the research (Creswell, 2014).
In this study, several limitations should be considered when interpreting the findings.
First, the sample size was small, limiting the generalizability of the findings to larger groups and
needing more depth. Second, the study relied on self-reported data, which may have been
subjected to bias and inaccuracies (Creswell, 2014). Third, the lack of adequate time to conduct
proper interviews became an issue due to the time constraints of the interviewees and interviews
being conducted in different time zones. Fourthly, the recruitment of participants only included
employees negatively affected by the downsizing event, potentially affecting the veracity of the

90
data collected. Finally, the sampling strategy proposed in the study was another factor
contributing to the study's limitations.
Proper time management is crucial to ensure that resources are adequately utilized to
mitigate these limitations. A deliberate sampling approach using convenience sampling was
utilized to accomplish the investigation's goals. While it is permissible to use this strategy, some
restrictions were attached, such as the underrepresentation or overrepresentation of a particular
group. Therefore, it is essential to acknowledge these limitations when interpreting the findings
and to recognize that they may impact the study's generalizability and depth.
Furthermore, delimitations were also present in this study. The study was limited in scope
to the railroad industry, and the experiences of survivors of downsizing events in other industries
may differ from those interviewed. Therefore, this study has limitations and delimitations that
may impact the generalizability and depth of the findings. However, acknowledging these
limitations and delimitations is crucial to interpreting the findings accurately. By doing so, future
researchers can build on this study's strengths and weaknesses and use this information to design
studies that address these limitations and delimitations to improve the validity and reliability of
their findings.
Future Research
The present study lays a foundation for future research avenues, suggesting the need to
delve deeper into specific dimensions of downsizing effects. Conducting longitudinal studies to
track the career progress of employees who have survived downsizing over several years;
analyzing factors such as promotions, salary growth, job satisfaction, and turnover rates to
understand the lasting impact of downsizing on survivors' careers; and investigating how
survivors adapt and develop professionally in the aftermath of downsizing would be more

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reliable. Researchers can also examine how different generations (e.g., Baby Boomers, Gen X,
Millennials, Gen Z) are affected differently by downsizing events and explore generational
attitudes and coping mechanisms in response to downsizing. This way, they can determine if this
diversity has any implications for organizational resilience during downsizing. The efficacy of
tailored intervention programs could be further investigated to offer comprehensive insights into
mitigating post-downsizing adversities. Unexplored terrains include an in-depth analysis of
downsizing effects on employee innovation, creativity, and their perceptions of organizational
justice post-downsizing. By focusing on these specific dimensions and conducting rigorous
research in each area, future studies can contribute significantly to understanding downsizing
effects and provide actionable insights for organizations to navigate these challenges effectively.
Conclusion
At the heart of this study lies the pervasive problem of corporate downsizing and its
profound ramifications on the survivor workforce, specifically within the U.S. railroad industry.
This study explored the challenges survivors face in the aftermath of such events. The findings
corroborate the study phenomenon and delve deeper, unearthing the web of effects spanning
motivation, job satisfaction, trust, and mental health among retained employees. The research
illuminated the profound shift in employee morale paradigms post-downsizing. It uncovered a
discernible decline in intrinsic motivation and a perceptible need for strategic recalibration to
reignite a sense of purpose and drive among survivors. Insights from survivors underscored a
marked disparity in job satisfaction levels, highlighting the strain resulting from downsizing
events. A comprehensive evaluation surfaced the need for proactive measures to restore job
satisfaction and foster a conducive work environment.

92
The study unearthed the erosion of trust within the organizational framework due to
perceived insensitivity and a lack of transparent communication. The impact reverberated,
affecting employee morale, organizational commitment, and overall productivity. Delving into
the psychological aftermath, the research illuminated the pronounced toll on survivors’ mental
health, elucidating heightened stress levels, anxiety, and a prevailing sense of uncertainty in the
post-downsizing landscape.
Highlighting the importance of survivors' experiences in downsizing events that
reverberate across industries, the research points to broader implications for organizational
change in various sectors and the workforce. The recommendations provided for the railroad
industry offer insights transferrable to other sectors and merit careful consideration. Downsizing
affects the organization's workers and has broader implications for the public, encompassing lost
wages, diminished tax revenue, safety concerns, and downstream job losses.
The study’s implications extend beyond individual experiences, resonating with
organizational vitality, ethical considerations, and the imperative for people-centric management
strategies in corporate settings.

93
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100
Appendix A: Interview Protocol
Interview Questions Potential Probes RQ Addressed Key Concepts
Addressed
1. What were your
experiences like at
the initial stages of
your railroad career?
Rapport 1,2 Micro
2. Tell me more
about your
relationship with your
peers after the
downsizing event.
2,3 Micro
3. Tell me about your
role with the
organization before
downsizing
1,2 Meso
4. What was the
impact of the
downsizing event on
your work
environment?
1 Meso
5. Tell me about your
role with the
company after the
downsizing.
1,2 Meso
6. How did the
organization
disseminate
information
concerning
downsizing?
1,3 Meso
7. Based on your
experience, how are
the remaining
employees affected
by the downsizing?
Engage Further 1,2 Meso
8. What are some of
the challenges you
encountered due to
the downsizing
event?
1,2 Meso
9. How has the
downsizing event
affected your job
motivation?
1,2,3 Micro/Meso

101
10. How has the
downsizing event
affected your job
satisfaction?
1,2,3 Micro/Meso
11. Has your trust in
the organization
changed due to the
downsizing event?
Expand Upon 1,2.3 Meso
12. What could the
organization have
done differently for
employees that were
not selected to be let
go during
downsizing?
What other options
beside
communications?
3 Meso

102
Appendix B: USC Information Sheet for Exempt Research
STUDY TITLE: Corporate Downsizing: A Study of the Survivors
PRINCIPAL INVESTIGATOR: Rodney A. Mace
FACULTY ADVISOR: Helena Seli, Ph.D.
You are invited to participate in a research study. Your participation is voluntary. This document
explains information about this study. You should ask questions about anything that is unclear to
you.
PURPOSE
The purpose of the study is to explore the experiences of employees whose are victims of
corporate downsizing. The study will culminate in recommendations for practice in order to
lessen the impact of downsizing on survivors. The study also addresses ageism inequalities, with
senior workers disproportionately selected for downsizing.
PARTICIPANT INVOLVEMENT
If you decide to take part in the study, you will be asked to complete a virtual interview. The
semi-structured interview takes approximately 45-60 minutes to complete. With your permission,
the interview will be recorded. You can decline to be recorded and will be able to continue to
participate.
Participants email address and telephone number are collected due to the interviews being
virtual. The participant’s email address are required to host a virtual Zoom meeting and the
telephone number is needed as an alternative, in the event of technology issues.
PAYMENT/COMPENSATION FOR PARTICIPATION
You will not be compensated for your participation.
CONFIDENTIALITY
The members of the research team and the University of Southern California Institutional
Review Board (IRB) may access the data observed. The IRB reviews and monitors research
studies to protect the rights and welfare of research subjects. When the results of the research are
published or discussed in conferences, no identifiable information is used.
The data collected for this study via interviews are anonymous. The data will be stored in a
password protected computer and will be destroyed after 3 years.

103
For interviews, confidentiality will be ensured by conducting one-to-one interviews in a private
setting. Participants will be asked if the interview can be audio-recorded. The identities of
participants will be kept confidential through the replacement of participants’ names with
pseudonyms in all interview transcripts. Further, all potential identifying information will be
redacted from transcription as well as field notes. You have the right to review the interview
transcript and make any edits you deem necessary.
INVESTIGATOR CONTACT INFORMATION
If you have any questions about this study, please contact Rodney A. Mace at (801)824-3887 or
rmace@usc.edu or Dr. Helena Seli at helena.seli@rossier.usc.edu.
IRB CONTACT INFORMATION
If you have any questions about your rights as a research participant, please contact the
University of Southern California Institutional Review Board at (323) 442-0114 or email
irb@usc.edu.

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Asset Metadata

Creator Mace, Rodney Allen (author)

Core Title Corporate downsizing: a study of the survivors

School Rossier School of Education

Degree Doctor of Education

Degree Program Organizational Change and Leadership (On Line)

Degree Conferral Date 2024-05

Publication Date 01/24/2024

Defense Date 01/17/2024

Publisher Los Angeles, California (original), University of Southern California (original), University of Southern California. Libraries (digital)

Tag downsizing,layoff survivors,layoffs,OAI-PMH Harvest,precision scheduled railroading,Railroad,workforce reduction

Format theses (aat)

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Seli, Helena (committee chair), Ott, Maria (committee member), Stowe, Kathy (committee member)

Creator Email alarkaventures@outlook.com,rmace@usc.edu

Permanent Link (DOI) https://doi.org/10.25549/usctheses-oUC113809489

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