Retained but affected: the psychological toll of layoffs on survivors and the mediating roles of gender and social support

Sumaira Jan and Swati Sisodia

International Journal of Applied Management Science, 2025, vol. 17, issue 2, 140-162

Abstract: In today's highly competitive and dynamic business environment, organisations often face the biggest challenge of downsizing to stay agile and adapt to changing environmental conditions. In this regard, layoff is one such strategy commonly followed by them. However, when an organisation lays off its employees, it not only sends a bad message but also affects the psychological wellbeing of its survivors. In this regard, the present study tried to decipher the impact which an organisational layoff has on its survivors' psychological wellbeing. The results of this study based on 435 responses from Delhi/NCR-based IT sector employees showed that when an organisation lays off its people, the psychological wellbeing of its survivors is deeply impacted. Although with social support from their family, friends and colleagues they do combat such issues successfully but the gender seems to play no role in this endeavour. The findings of this study contribute to the existing body of knowledge on the impact of layoffs on survivors' psychological well-being and provide practical implications for IT companies. We believe that understanding the mediating role of gender and social support will assist organisations in implementing targeted interventions and support systems to enhance the psychological well-being of survivors.

Keywords: layoffs; survivors; psychological wellbeing; IT sector; gender; social support; mediation. (search for similar items in EconPapers)
Date: 2025
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