Management should create a credible vision for the downsizing that integrates the needs of the employees with the vision of where the company wants to go and how it will increase its competitiveness in the industry. The vision must be part of a corporate improvement plan that is integrated into the firm's overall strategic position. Indeed, Aaron Feuerstein, CEO of Malden Mill Industries, has managed to downsize continually without impairing the morale of his workforce. Absolutely, I'm in favor of it. And we do it here all day long.
Experts can help preserve employees' feelings of empowerment and fight feelings of helplessness.
Managers should also be trained in how to communicate with the employees and how to empathetically announce the downsizing. Managers will need training and practice in telling employees that they will be laid off, and must be able to answer any questions that may arise. These managers must be informed of how to take care of the business at hand while not crushing the spirit of the surviving workforce. These managers can become the scapegoats for a top management decision. Some laid-off workers will be unable to comprehend what is happening and will lash out at the messenger or become violent.