search query: @author Vanderheiden, P. A. / total: 1
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| Author: | De Meuse, K. P. Vanderheiden, P. A. Bergmann, T. J. |
| Title: | Announced layoffs: Their effect on corporate financial performance |
| Journal: | Human Resource Management
1994 : WINTER, VOL. 33:4, p. 509-530 |
| Index terms: | LAY-OFFS REDUNDANCY EMPLOYMENT TERMINATION |
| Language: | eng |
| Abstract: | Conventional wisdom holds that when a firm gets into trouble due to lagging sales and rising costs, cutting the size of the organization to reduce fat and waste is a normal and effective response. In this study, evidence was found to suggest that just the opposite might be true. The financial performance of Fortune 100 companies was traced over a five-year period - two years prior to the announced layoff, the year of the layoff announcement, and two years following it. Contrary to expectations, the results indicate that financial performance worsened, rather than improved, following announced layoffs. Strategic and human resource implications for the management of corporate downsizing are provided. |
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