Layoffs: New Study reveals companies shooting themselves in foot

If your company is undertaking a layoff, be forewarned: Your surviving employees are not going to work harder out of gratitude.  According to a new study by Leadership IQ, 74% of employees who kept their job amidst a corporate layoff say their own productivity has declined since the layoff.  And 69% say the quality of their company’s product or service has declined since the layoffs.

Leadership IQ, a leadership research and training company, compiled these results after surveying 4,172 workers who remain employed following a corporate layoff.  These subjects were drawn from 318 companies that have undertaken layoffs in the past 6 months.  Employees were asked questions about productivity, product quality, workforce issues and management effectiveness.

Other key study findings about the state of the workplace following the layoffs include:

·         87% of surviving workers say they are less likely to recommend their organization as a good place to work

·         64% of surviving workers say the productivity of their colleagues has also declined.

·         81% of surviving workers say the service that customers receive has declined.

·         77% of surviving workers say they see more errors and mistakes being made.

·         61% of surviving workers say they believe their company’s future prospects are worse.

Read more about layoffs and productivity.


Ira S Wolfe


  1. Layoffs January 16, 2009 at 4:53 am -

    People always hate to talk about when they are laid off. But as it has become every day’s news headline since Yahoo started it with cutting 1500 of its task force last year, now a need of platform has been in demand where people can express their selves in words how they are feeling about their company, whey the got laid off was that justified or not.
    And every thing they want to tell anonymously.And is providing you that platform.

  2. adam hartung January 1, 2009 at 4:42 pm -

    Layoffs, at best, produce only short-term improvement. At the risk of creating severe damage. Like a crash, starvation diet – the health risks outweigh the short-term gain. Instead, businesses need to change what they do to be more competitive – and that involves applying innovation – rather than focusing on cost cutting. Read more at