Employers would do well to understand the human toll of layoffs, says Elizabeth Wolfe Morrison, associate professor of management and organizational behavior at New York University's Stern School of Business. Indeed, companies often find they have to address a growing volume of worker problems after a downsizing, even though there are fewer employees. One reason for these ills is that the work itself can be more demanding and less rewarding. A downsized work force typically means longer hours, demands for higher productivity and fewer opportunities for advancement. Another factor is the chronic worry that you might be next to lose your job.
Insecurity is one pathway that produces the bad health outcomes.
Women in particular were found to gain weight as a result of layoff concerns, he says. Grunberg and others speculate that the disruption in social relationships caused by layoffs may also contribute to poorer health. Employees can be rattled seriously by mere rumors of a layoff. Then, as it's nearing completion, you're quite frankly doing more work with fewer people. This puts excessive hours on people's schedules and stress in their lives.