Psychological Impact of Layoffs on the Existing Employees

The aim of the study is to study the psychological impact of layoffs on the surviving employees in the organizations. It is a descriptive study. The data has been collected with the help of a designed questionnaire. The questionnaire was designed on the parameters: stress, health problems, emotional impact, leisure impact, impact on their children and interpersonal relations. The sample size of the study is 70. It is concluded that the layoffs create adverse effects on the psychological well-being of the employee, which leads to stress, health problems, reduction in entertainment level. It is seen that due to layoffs the interpersonal relations also get effected to some extent. It is also seen that stress is the main factor which is correlated with almost all the parameters and the major outcome of the layoffs is the stress which is responsible for the further problems that an employee faces during this period of time.