Maintaining employee morale and trust is a key reason why a company would seek to prevent layoffs during a reorganization. As Gorman (1998) demonstrated, creating an operating-plan model was beneficial. Subsequently, terminating workers may significantly disrupt the workforce and create feelings of job insecurity among the remaining staff (Datta et al., 2010). The presence of uncertainty and worry has a detrimental effect on both productivity and engagement. Employees may begin seeking other employment or only do the minimally required tasks until they get a new job. Conversely, implementing a policy of no layoffs demonstrates to workers that the firm highly regards them and is dedicated to their welfare, especially in challenging circumstances. This can generate a significant amount of positive reputation and commitment from others (Robbins & Judge, 2017). If employees sense that the company values and trusts them, they are more willing to go above and beyond. Therefore, while layoffs could result in some short-term cost savings for businesses hoping to recover from a restructuring, the long-term effects on morale, productivity, and turnover actually exceed those advantages