Book excerpt: This book examines the impact of downsizing on employee morale and productivity. Downsizing, due to economic changes, has played an integral part in business, the public sector, and schools. No longer are companies inclined to maintain the status quo for the sake of employee loyalty. Downsizing has have resulted in the lives and careers of employees being destroyed. The purpose of this study was to provide insight on the perception of the work environment in light of downsizing in the states of California and Illinois Cooperative Extension. The primary role of Extension is to plan pertinent programs that are effective in meeting the educational needs of the community in agriculture, family and consumer studies, and youth development. This study focuses on how to maintain professional competencies with less staff. Data was provided by the Manson's Workplace Environment Analysis Inventory, and original instrument, to secure reactions of employees in a downsized environment, specifically on morale, survivor job security, and trust. The findings suggested that even though there were discrepancies between the employees' and management's perceptions of morale and survivors job security, they did share similar perceptions on trust in the workplace. The results of this study can be used in designing leadership training programs for community based organizations and others faced with downsizing.