1080 employee-survivors and 293 manager-survivors were investigated among 24 state-owned enterprises, which had downsized. The results showed that downsizing Strategies correlates with survivors' mental reactions and with organizational performance significantly. That is to say that arbitrary downsizing strategies often leads to confusion of survivors' mental status, and that lower lack of communication leads to survivors' disatisfaction and distrust of the organization. Regression of mental reactions demonstrated that employee-survivors were the special part. It was also found that routine management means greatly on the improvement of organizational climate and employees' commitment and job satisfaction.