Everybody Is in It for Themselves: Organizational Communication and the Lasting Effects of Involuntary Job Loss in an M&A Context

Sammanfattning

This study examines how organizational communication during an acquisition shapes the involuntary job-loss experience of redundant employees. Through a qualitative case study of Omega's acquisition of Sigma, drawing on semi-structured interviews with seven former employees, the study applies psychological contract theory and sensemaking to analyze how communication before, during, and at the moment of exit affected how redundancy was experienced and retrospectively understood. The findings reveal that information suppression drove collective speculation and left employees professionally unprepared when redundancies were confirmed. Despite the exit being delivered through an autogenerated email, the emotional response was relief rather than distress, as the consequences had already been processed during months of uncertainty. Most significantly, the experience produced a lasting shift from organizational loyalty toward a self-protective and transactional orientation to employment. The study also identifies two forms of retrospective rationalization through which emotional resolution becomes possible, and demonstrates that violation can be emotionally processed prior to formal breach.