Aside from the false premise at the outset, which others have noted, there's also a simpler explanation for lower job satisfaction during downsizing. It's been observed that even the employees that "survive" bad layoff rounds become less happy as a result, presumably because they feel threatened that they might be next, because they feel they have no control over their situation, or because they feel their former colleagues were treated unfairly. As a result, they either work harder than they did before, in an attempt to please their superiors, or they resign in their mind. Neither makes them happier. The theory in the article inadvertently touches on the aspect of perceived loss of control, but I think the author reaches the wrong conclusions.