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This article proposes and empirically validates a theoretical model for understanding how and under what circumstances the use of job cuts generates conflict between the remaining employees in the organization. It highlights the mediating role of workload and the moderating effect of restructuring efforts undertaken in parallel with job cuts. Hypotheses were tested by reference to survey data collected from 462 white-collar employees. The results revealed that downsizing was positively related to interpersonal conflict (i.e., task, process, and relationship conflicts) and that workload mediated the relationships between downsizing and task and process conflicts. Moreover, restructuring weakened the relationship between downsizing and workload and the indirect association between downsizing and task and process conflicts via workload. The current study highlighted a key mechanism—workload—by which downsizing leads to interpersonal conflict and indicated that restructuring minimizes survivors’ workload, thus further reducing the interpersonal conflict among them. Therefore, this study suggests that in cases of headcount reduction, managers should implement changes in their organizational structure and work processes to align them with the available workforce with the aim of minimizing survivors’ workload and interpersonal conflict.