Their are two ways to handle corporate downsizing: the right way and that other way. Thomasnet.com offers these five tips for rebuilding productivity and morale after a layoff:

1. Customize Communication. “When things seem to be coming apart, the normal communication links break down just as suspicion and mistrust begin to predominate,” says John Shepler’s Managing after Downsizing. “Some news is always better than no news, even if it is the same old news. If people don’t hear anything, they fear the news is so bad that no one wants to tell them.”
2. Re-emphasize Vision, Mission and Values. Following mass layoffs, the organization’s mission and vision for the future likely will have changed or received new life. Managers must then “recreate the work environment, so that people build their self-esteem, find work satisfying, and achieve at higher levels,” HR expert Susan Heathfield writes at About.com: Human Resources. “The foundation for this progress is to re-emphasize the organization mission and the values.”
3. Rebuild Trust. “Managers must reinforce the trust factor since many survivors may feel emotionally disappointed,” The Hayes Group International says. “Once trust is lost, it is almost impossible to regain.”
4. Proactively Address Workloads. “Increased workloads for employees who survive layoffs are inevitable,” Douglas Klein, president of Sirota Survey Intelligence, said late last year. This can affect teamwork and task effectiveness in a bad way. But, according to Klein, “managers can choose to involve their employees in the search for solutions, thus addressing both teamwork and efficiency simultaneously.”
5. Recognize Survivors. “If you are a manager, it is most important to reassure the people who report to you of their value to you and the organization,” HR expert Heathfield notes in a separate feature. “You need to talk with each of them individually to let them know why and how they are valued; tell them what you feel they contribute to your effective, continuously improving work environment.”

Career Edge One would add a sixth recommendation:

6. Utilize the outplacement services of Career Edge One. This will help laid-off workers find the most appropriate new position more quickly and let those remaining know that the company values the contributions of its employees, past and present.