JOURNAL ARTICLE

Research: The Long-Term Costs of Layoffs: A study of 146 companies that conducted layoffs showed that it often takes years -- not months -- for engagement, morale, and loyalty to rebound.

  • Published In: Harvard Business Review Digital Articles, 2024. P. 1 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Elzinga, Didier; Lavoie, Amy 3 of 3

Abstract

A study of 146 companies that conducted layoffs showed that it often takes years for engagement, morale, and loyalty to rebound. The study found that after layoffs, companies experienced a significant drop in employee confidence, belief in career opportunities, and confidence in leadership. The impact of layoffs on employee engagement was even greater in companies that had higher engagement levels prior to the layoffs. Recovery from layoffs took 12-18 months in the 2020-2022 period and is expected to take even longer in the 2023 layoffs. The study also emphasized the importance of humanizing the layoff experience and treating employees with empathy and respect. [Extracted from the article]

Additional Information

  • Source:Harvard Business Review Digital Articles. 2024/10, p1
  • Document Type:Article
  • Subject Area:Social Sciences and Humanities
  • Publication Date:2024
  • Accession Number:180243725
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