The effects of layoffs on firm reputation

A firm's reputation is perhaps one of its most important strategic resources. Using data from Fortune's America's Most Admired Companies survey, this article examines how layoffs affect the reputations of firms. The authors found that layoffs have a negative impact on a firm's re...

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Bibliographic Details
Published in:Journal of management 2005-06, Vol.31 (3), p.445-463
Main Authors: Flanagan, David J, O'Shaughnessy, K C
Format: Article
Language:English
Subjects:
Business organization and administration
Layoff systems
Personnel management
Social aspects
Online Access:Get full text
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Summary:A firm's reputation is perhaps one of its most important strategic resources. Using data from Fortune's America's Most Admired Companies survey, this article examines how layoffs affect the reputations of firms. The authors found that layoffs have a negative impact on a firm's reputation and that this relationship is significantly stronger for newer firms than older firms. Limited support is found for the hypothesis that larger firms' reputations will be buffered from the adverse effects of a layoff on their reputations. Implications of this research and future research questions are discussed.
ISSN:0149-2063