Research Seminar of Graduate School of Management SPbU “The Effect of Announced Downsizing on Workplace Performance: Evidence from a Retail Chain” will be held on April 5, 2016. Nikolay Zubanov, Ph.D., Professor, Goethe University Frankfurt, will be a speaker.
Presentation will be dedicated to the estimation of the effect of downsizing announcement on workplace performance using data from a German bakery chain of 193 shops. Faced with intensified competition, the firm decided to sell or close down 57 of its worst performing shops. During his research prof. Zubanov and his colleagues identified the effect of downsizing from a plausibly exogenous variation in the timing of the sale or closure announcement in the individual shops. They find that the announcements of the shop being sold to a new owner and being closed down reduce sales by 6 and 21 percent, respectively. The negative effect of downsizing increases with the share of workers with a permanent contract, even though permanent workers faced a lower unemployment risk. Prof. Zubanov and his colleagues related these findings to the literatures on downsizing and psychological contract.