Employment implications of downsizing strategies and reorientation practices: an empirical exploration

Abstract

The aim of this study is to investigate the employment implications of different downsizing approaches. Thereforewe executed 19 case studies in Belgian organizations that recently were confronted with downsizing. Based on the results empirical study a two-dimensional categorization model is developed. The first continuum of the model represents the time frame (reactive to proactive) of downsizing strategies, while the second continuum represents the focus of reorientation practices towards the internal or external labor market. Based on this categorization scheme, employment implications were explored. Further, theoretical, managerial and governmental implications are suggested. Keywords: Downsizing, labor market, employee reorientation.