The Dynamics of Downsizing in Australia and New Zealand

This paper presents systematic data on downsizing and delayering trends in Australia and New Zealand. It is based on comparative survey data of 1321 private and public sector organizations. The distribution and depth of down sizing is similar in the two countries. The article compares the outcomes of downsizing in relation to key HRM variables. Our results indicate opposing trends between New Zealand and Australia: in Australia firms have suffered negative human resource outcomes following downsizing, whereas in New Zealand employee motivation and commitment have tended to increase after downsizing. Why are there such wide discrepancies between the outcomes in New Zealand and Australia? The article concludes that discrepancies arise partly because of the restructuring cycle and partly because the frequency of downsizing in Australian organizations has created a severe case of ‘survivor syndrome’. These conclusions have implications for the management of downsizing.