  The study investigates the impact of downsizing layoffs on the profitability
of construction industries listed in BSE India. In India, construction
industries have adopted downsizing long back in the organization to improve the
firms performance. For the purpose of the study, Secondary data of 15
Construction companies listed in BSE India have been considered for a period of
10 years from FY.2010 to FY2019. Data has been taken from the companys official
website. The variable considered for the analysis is Other Expenses, Returns on
Net Worth, Employee Expenses, Number of Employees, and Profit Per Employee. The
study has used the Co-integration test to see co-integration between the
variables, Ordinary Least Square (OLS) and Vector Auto Regression (VAR) the
model used for estimating the impact of downsizing on the profitability of
construction companies. OLS and VAR model has been used to draw a conclusion
based on the P values and R square. From the result, it can be concluded that,
Expect Profit Per Employees are the downsizing variable that has no significant
impact on the profitability of the firms performance. Whereas the other
Downsizing variables Employee Expenses and the Number of Employee has a
significant impact on the profitability of the firms performance
