Abstract

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