How layoff may affects productivity of an organization

Layoff will initially increase productivity because fewer people doing the same amount of job. The remaining workers need to work harder or longer hour to complete the job due to fewer people doing the same amount of job. Over a period of time, the remaining will feel overload. Layoff may also make the remaining workers worry whether further layoff will happens or not. This two pushing factor may cause the competent workers to leave. Replacement to the new workers may need time to catch up and this may affect the productivity.