It is reasonable and proper to mourn for the loss, but eventually it is necessary to move on. It is a time of uncertainty and often confusion, discomfort and high stress. People may even feel incompetent until they master new tools, new skills and new roles. This is the wilderness through which managers have such a critical role of leadership if the new organization is to take hold and prosper. The old ways fade into memory and the new ways become the expectation.
People feel competent and confident again.
Productivity increases as people focus on the job at hand rather than dwelling on personal anxieties. Recognize that downsizing or any dramatic change will be met with an emotional response that will be as intense as the situation is threatening. In many cases people will fee victimized and will need to mourn their loses before they can move on. Try to buy them time and professional counseling if you can. They need to be led.