downsizing had the most negative effect on employee morale. Four of five respondents whose companies had downsized in the past five years said the process resulted in a lower workplace morale (Salopek, 2000). In addition to low workplace morale, downsizing also creates low productivity (Koonce, 1991). It is, therefore, necessary for organizations implementing downsizing initiatives to adequately and effectively address the people issues throughout the process as it relates to separating and surviving employees. To address the people issues, the author proposes that HR leaders must take a holistic approach to increase the chance of organizational success after downsizing.