This study examined the determinants and consequences of survivors' coping responses to a recent workforce reduction involving permanent layoffs. The participants consisted of 200 unionized technicians in the telecommunications industry. Survivors with high optimistic predispositions and a strong sense of mastery were more likely to engage in control-oriented coping. Perceived threat of job loss was positively related to the use of both control and escape coping whereas sense of powerlessness was negatively related to the use of control coping. Control coping was associated with positive outcomes and escape coping with negative outcomes. Coping had both additive and interactive effects on the outcome variables. The implications of these findings for management are discussed.