The impact of downsizing on employees' affective commitment

To examine the mechanisms through which downsizing affects employees' affective commitment to the organization in two Korean banks.

A total of 910 questionnaires were completed by bank employees. Data was analysed using hierarchical regression and LISREL path analysis techniques. Twenty semi‐structured interviews were also conducted.

The results show that the more severe the extent of downsizing, the lower employees' affective commitment to the organization. Moreover, downsizing has an impact on employees' affective commitment to the organization through several of the daily work experiences of employees. Thus, downsizing affects employees' affective commitment to the organization both directly and indirectly. However, its indirect impact is much stronger.

The research was conducted in Korea and may have limited generalizability to Western cultures.

Sympathetic management of downsizing can minimize the negative impact on the affective commitment of surviving employees.

This paper offers insights into organizational commitment in a (relatively under‐researched) Korean context.