The purpose of this study was to examine the effect of a number of variables (relating to the economic environment, firm characteristics, human resource management values and policies, and labor relations values and policies) on the workforce reduction behavior of major United States organizations. Three measures of workforce reduction behavior (probability of permanent workforce reduction, size of the workforce reduction, and the severity of the reduction measures used) were employed in the research. Responses from 378 organizations to a mailed survey were linked with financial data available on Compustat. The results of the study indicated that over 46% of the respondent firms permanently reduced their workforce since January of 1987. For the sample as a whole, the probability of permanent workforce reduction was greater for firms reporting a decline in sales since 1987, for larger firms, for firms characterized by instability, and for firms with a lower commitment to training. For those firms that engaged in a permanent workforce reduction, the size of the workforce reduction and the severity of the reduction measures used were positively related to management instability and negatively related to firm size and commitment to job security. / Ph. D.