Downsizing has huge impact on the organizations nowadays. The situation that prevailed in the companies becomes regular and it concerns not only organizations themselves, but also the employees, communities, and families of the employers. Today’s economic climate has a tendency to be adversely unstable what leads to the negative implications for the working class. Thus a lot of the organizations were driven out of the business that means downsizing, which usually is conducted in several phases. The job loss includes a number of moral, social, and psychological influences not only on the employees, but both on their families. Therefore, downsizing makes a huge impact on the employees and their family’s life in the future similar as on the organization.
One of the downsizing implications is the fact that the employees are affected by job loss and loss of the financial support. Thus they have to find a new workplace to provide the family. Despite the psychological condition of the rightsizing employee and economic situation in the state it is not easy to do. In spite of the increasing of companies’ profits they are short-lived, but person loss his or her confidence in the coming day. The employees suffer from the lowered self-esteem and the process of returning to the normal mental health is long and hard.
The depression of the laid-off employee also influences their families. All members of the family have to help him or her in the overcoming all the psychological issues for coming back to the stable life. Usually family has to refuse from some conveniences, which they have used before downsizing. This situation could lead to the child’s psychological disorder and family’s quarrel which has bad impact on the family climate.
The harmful effects of downsizing affect communities as well. The employees of the business community who keep their workplaces after a layoff are influenced by the rightsizing. Very often they have mixed feelings of being glad to save job and compassion to their co-workers. According to this they may have problems of trust with the organizations and the loss of the employees adds more work to do.