Company downsizings have been increasing at an alarming rate with over 170,000 staff layoffs in May 2008 alone. As a manager, you're tasked with keeping your employees energized and focused on the job. This becomes increasingly difficult if your team has been impacted by a layoff. You now must accomplish the same amount of workload with fewer arms and legs available to get it done. Add to that the stress that everyone is feeling, the water cooler gossip about when the other shoe will drop and perhaps your concerns about the stability of your own job. BNET has some excellent suggestions on handling the triple threat of smaller staffs, company cost cutting measures and low employee morale. I've put my spin on them below:

• Be candid about the situation. Acknowledge that it is partly the economy but don't use that as an excuse. Even in the worst of times, companies can survive and thrive if they are innovative and leverage their opportunities.
• Don't hide behind the official company communications. Interpret the corporate messages about company status and how it could affect the team.
• Take the opportunity to teach your team how the business works. Give them the big picture on where and how the company makes money. Get their ideas on how they can contribute to bringing in revenue or increasing productivity.
• Be more visible. Make it a point to chat  with team members individually and in small groups to give them  an opportunity to engage in a dialogue with you.  If you're not physically located in the same building,  make a  visit to their office or use phone calls to stay in touch.

Maintaining morale in difficult economic times isn't easy but following the recommendations above will help you keep the trust and confidence of your team.