The Experiences of Layoff Survivors: Navigating Organizational Justice in Times of Crisis

Sanghyun Lee, Sounman Hong, Won-Yong Shin and Bong Gyou Lee ()
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Sanghyun Lee: Graduate School of Information, Yonsei University, Seoul 03722, Republic of Korea
Sounman Hong: Department of Public Administration, Yonsei University, Seoul 03722, Republic of Korea
Won-Yong Shin: School of Mathematics and Computing (Computational Science and Engineering), Yonsei University, Seoul 03722, Republic of Korea
Bong Gyou Lee: Graduate School of Information, Yonsei University, Seoul 03722, Republic of Korea

Sustainability, 2023, vol. 15, issue 24, 1-20

Abstract: This study explores the impact of COVID-19 layoffs on surviving employees’ perceptions at Airbnb, a key player in the hospitality industry, during the global pandemic. The crisis brought organizational justice into sharp focus, raising questions about fairness, employee satisfaction, and trust in management. Utilizing an interpretivist approach, we conducted fifteen semi-structured interviews with Airbnb employees who survived the layoffs. Accompanied by a comprehensive literature review, our analysis delved into the challenges these employees encountered. The thematic analysis uncovered insights into organizational justice dimensions—distributive, procedural, interactive, and informational—and their role in shaping fairness perceptions and employee outcomes. Findings reveal that despite challenging circumstances, empathetic and proactive practices like regular check-ins and transparent communication significantly helped maintain fairness perceptions among survivors. This counters the common belief that layoffs invariably diminish justice perceptions. Our study demonstrates that negative impacts can be effectively mitigated through thoughtful organizational practices. In conclusion, the research underscores the importance of organizational justice during crisis-induced layoffs. It advocates for maintaining fairness and transparency to preserve employee trust and satisfaction, which are vital for organizational resilience and sustainability. This study enriches the literature on organizational justice and crisis management, providing valuable insights for businesses in similar situations.

Keywords: Airbnb; COVID-19 layoffs; crisis management; human resource management; layoffs; crisis downsizing; organizational justice; crisis layoff; organizational challenges (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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