Theoretical perspectives on downsizing: the long-term effect and impact of repeat downsizing.

Current understanding of the long-term effect of downsizing and the effect of repeat downsizing is limited by the small number of empirical studies in the field and the conflicting evidence they provide. This article reviews the three theoretical perspectives found in the downsizing literature and concludes that downsizing does have a long-term effect on employees and organizations, that the type of downsizing contact and the order of that contact influence the outcome of repeat downsizing, and that employee vulnerability or resilience to repeat downsizing is dependent on the outcome under investigation