Job Insecurity and Performance: Contributions for an Integrative Theoretical Framework

Background

In recent decades, the layoffs have become a common practice in companies, as a result of mergers, acquisitions and restructurings. Automation made some functions obsolete and the search for quick profits institutionalized the model of cutting personnel expenses (Greenhalgh & Rosenblatt, 2010; Hirsch & De Soucey, 2006). Although in recent years the practice of downsizing has been less reported to avoid damaging brands with negative press, the “stealth layoff” model adopted by human resource management maintains the same effect of distrust in the psychosocial environment of work contexts (Gandolfi & Littler, 2012).

Job loss is considered a major stressor, and the mere threat of job loss can trigger coping reactions similar to job loss itself (Vander Elst, De Cuyper, Baillien, Niesen, and De Witte, 2016), such as psychological distress, burnout, and depression, leading to reduced productivity, alienation from others, and emotional exhaustion (Hobfoll, 2001).