This work aims to analyze the relationship between downsizing and stress in GE Celma during the year 2002 and its effects on the organization and the remaining employees. The choice of GE Celma is due to its position in Brazil and worldwide as a reference company of maintenance and repair of aeronautic engines. This work was based on the study of a case and the literature about downsizing and stress published in books or articles in specialized journals. Data was collected through 45 interviews answered by the remaining employees of the company. The results of these interviews were qualitatively worked out, analyzing the opinion, comprehensions and thoughts of the subjects of the survey. As of the result of the survey, it was possible to observe that the downsizing leads to an increase of stress on the remaining employees, mainly caused by the increase of work, greater responsibilities and insecurity regarding maintenance of jobs. It was possible inferred that downsizing also changed the psychological contract. Based on the result of the study, it was possible to provide advices to reduce negative downsizing impact within organizations. Also, assuring respectful treatment to employees, informing the actual reasons for downsizing, reducing ambiguity of roles, establishing a follow-up system of individual performance, establishing a fast and efficient communication system and privileging empowerment involving employees in the decision making process are alternatives for Human Resources actions to be taken in order to diminish unwanted impact of downsizing. Besides, it shall help the companies, which may need to downsize, to mitigate possible consequences on the remaining employees.