Forgetting-relearning cycles in organizational downsizing strategies

When firms seek to reduce costs and increase productivity, they often view downsizing as a viable strategy. However, research on downsizing outcomes is not conclusive. Recent studies describe several counterproductive consequences of downsizing, which include, among others, loss of motivation, decreased innovation capacity, the appearance of a short-term mind set, the rise of organizational conflicts, and the loss of product or service quality....