Al-Kharaj: Journal of Islamic Economic and Business
Vol. 8 No. 3 (2026): All articles in this issue include authors from 3 countries of origin (Indonesi

Building Employee Performance Following Mass Layoffs at PT Sang Hyang Seri (Persero), South Sulawesi Branch

Nurul Hikmah Hidayat (Master of Management Program, Graduate School, Universitas Muhammadiyah Makassar)
Muhammad Rusydi (Master of Management Program, Graduate School, Universitas Muhammadiyah Makassar)
Muh. Rum (Master of Management Program, Graduate School, Universitas Muhammadiyah Makassar)



Article Info

Publish Date
25 Aug 2026

Abstract

Mass termination has become an increasingly important organizational strategy in response to financial pressure, restructuring, and changing business conditions. However, workforce reduction may generate unintended consequences for employees who remain in the organization, particularly in relation to workload, job insecurity, motivation, organizational commitment, and performance. This study aims to analyze how mass termination affects employee performance and to explore how surviving employees construct and maintain their performance following workforce reduction at PT Sang Hyang Seri (Persero), South Sulawesi Branch. A qualitative case study approach was employed involving ten informants, consisting of two terminated employees, five surviving employees, and three members of management. Data were collected through in-depth interviews, field observations, and document analysis and analyzed using thematic analysis supported by source and methodological triangulation, member checking, and systematic verification. The findings indicate that mass termination generated psychological uncertainty, increased workload, weakened organizational trust, and reduced motivation, job satisfaction, teamwork, and organizational commitment among surviving employees. Nevertheless, employees demonstrated adaptive responses through performance documentation, target setting, intensive coordination, routine evaluation, skill development, and work innovation. The study further reveals that transparent communication, procedural fairness, workload redesign, training, recognition, and organizational support are critical conditions for transforming employee adaptation into sustainable performance. The study contributes to the downsizing literature by conceptualizing workforce rationalization as a conditional performance strategy rather than merely a cost-reduction mechanism.

Copyrights © 2026






Journal Info

Abbrev

alkharaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Al-Kharaj, Journal of Islamic Economic and Business is peer-reviewed journal published by program studi ekonomi syariah , Institut Agama Islam Negeri (IAIN) Palopo. Al-Kharaj focus on the research of Islamic Economic and Business. The aims of this journal is to explore and develop economic related ...