Corporate restructuring, such as workforce reductions, has lowered employees' morale instead of improving productivity, according to the results of a survey made available Saturday by a think tank affiliated with the Health, Labor and Welfare Ministry.

The Japan Institute of Labor conducted the survey in January and February, polling officials in charge of labor and personnel affairs at about 100,000 firms. Effective responses were received from 1,683 firms.

The survey showed that 51.9 percent of the companies have reduced their workforce in the past three years or are planning to do so. Most curbed recruitment to achieve the staff cuts.

Asked about the effects of the streamlining programs on a multiple-answer basis, most respondents saw negative results, with 51.5 percent saying morale declined, 45.8 percent experiencing longer working hours and 33 percent losing capable employees.

In contrast, 35.9 percent saw improved productivity and 13.6 percent saw an increase in morale.

The proportion of companies with reduced morale increased in line with the size of workforce cutbacks.