ABSTRACT. The purpose of our article is to present a qualitative empirical study from the ethical view- point. It aims at the theoretical conceptualization concerning the managers’ decision-making of per- sonnel dismissals in downsizing organizations. First we present and seek to motivate our research task. The importance of real business ethical issues as a starting point of business ethics research is emphasized. Second the main normative ethical theories and ethical decision-making models are presented. These form the loose framework for describing and inter- preting research interviews. After this the empirical findings are set forth. This part suggests that the managers explain the dismissals from different decision-making roles emphasizing different ethical orientation. The roles are called a rational and an independent manager, a marionette and an emotional individual. Our study suggests that the role of empathy in morality reveals an interesting and a necessary research topic for business ethics research. The working career of the industrial society is considered full-time, life-long and permanent. However, this ideal seems to be in transition at the moment. Individuals can no longer trust on permanent jobs and security. Organizational downsizing defined as intentional and planned elimination of jobs and positions seems to be the unavoidable accompaniment of current business trends. Since the eighties downsizing has become popular in western societies (Cameron, 1994). There were quite a few companies that did not downsize at all during the 1980s and 1990s. Feldman and Leana (1994) describe that layoffs are no longer abstract business phenomena that occur in someone else’s industry or hometown. There is actually no one who does not know someone who has been laid off or has not had at least some anxiety about the job security. Among those who lose or are in danger to lose their jobs are also groups which earlier were thought to be safe from economic uncertainty, such as managers and specialists (Kanter, 1989; Tichy and Devanna, 1990). Despite the current economic recovery that seems to be occurring, massive downsizing continues apace at one major firm after another. Downsizing is probably one of the most disruptive and dramatic type of organizational change which many managers are likely to experience nowadays. A poorly executed downsizing can traumatize a company for years and lead to unexpected results (Drew, 1994). However, knowledge concerning managing downsizing and reducing staff is not very common. Most attention in managerial literature Downsizing and Ethics of Personnel Dismissals – Anna-Maija Lämsä The Case of Finnish Managers Tuomo Takala Journal of Business Ethics 23: 389–399, 2000. © 2000 Kluwer Academic Publishers. Printed in the Netherlands. Anna-Maija Lämsä is a researcher and lecturer of man- agement and organizations at the University of Jyväskylä, School of Business and Economics in Finland. She has publications in International Journal of Entrepreneurship, Nordic Journal of Education, and Electronic Journal of Business and Organiza- tion. She has published in Publications from the School of Business and Economics, University of Jyväskylä. She has also published several articles concerning change management and development of business education in professional journals and books in Finland. Tuomo Takala is a professor of management and organi- zations at the University of Jyväskylä in Finland. His main research interests are business ethics and leadership. He is the editor-in-chief of Electronic Journal of Business and Organization Ethics . He has published e.g. in Scandinavian Journal of Management , Journal of Business Ethics , European Journal of Marketing, International Journal of Social Economics and Corporate Communications – An International Journal.