Praslova, L., Davis, L., Pearson, A., Thorn, R., Hopkins, D.,& Castillo, D. (2009). Before You Say the word “Layoff”: Psychological Effects of Layoffs and Alternative Solutions. Poster presented at the 21th Annual Convention of Association for Psychological Science, San Francisco, CA, May 22 – 25.
Layoffs have well documented negative consequences for all parties involved. However, organizations often use this approach to cutting costs. We review the literature on psychological effects of layoffs and alternative responses to economic challenges, and suggest questions to consider in evaluation of different ways to reduce costs.