When trust is lost, a culture may never fully recover, and long-term employee performance, commitment, and motivation may be compromised. Long term, this works against innovation, adaptation, and market responsiveness. While downsizing is most traumatic for the individual who is cut, the trauma also affects others within her or his network. Family and friends suffer. The businesses where the individual was once a customer suffer.
Communities suffer when large-scale downsizing occurs.
There's plenty of suffering for everyone. My values tell me that this is wrong and that people are more important than profits. At a broader level, the erosion of trust within organizations can lead to an erosion of faith in our organizations and economic system. It is apparent we are facing a crisis of confidence in this nation. Traditionally, employment is a component of the social contract in capitalistic societies.