Workforce reduction has been increasingly utilized by enterprises as an approach to optimize staff formation ,andimprove the efficiency and competitiveness of enterprises .Although many studies have been conducted concerning the relationships between workforce reduction and organizational performance , findings over the last three decades remain inconsistent . The effectiveness of workforce reduction may be influenced by many contextual factors . Therefore , efforts should be made to systematically identify and analyze the most important contextual factors at the levels of industry , organization and individual person . At the industrial level , industrial types , dynamism and growth can affect the effectiveness of reduction in different directions and to a different degree . At the organizational level , organizational slackness , human resources management system and downsizing strategies may moderate the relationships between reduction and performance . At the individual level , characteristics of leadership , victims and survivors mayinfluence the post-reduction performance to some degree . Practical suggestions are provided as to whether ,when and how enterprises should conduct an effective workforce reduction .