This article examines the relationship between workplace transformation (or restructuring) and the well being of employees in terms of both psychological and physical health, at a large manufacturing corporation in the United States. While the previous literature has been largely divided over the issue - some researchers providing unqualified enthusiasm and others equally strong criticism of workplace changes we found, after decomposing workplace transformation into five distinct dimensions of intensity, autonomy, team-work skilling and computing, that certain components were harmful while others were beneficial to the employees. Furthermore, some effects of reengineering varied between managers and non managers. Overall, increases in workplace intensity were associated with the largest increases in stress and symptoms of poor health. The data were produced by a longitudinal (two-wave) survey questionnaire of over 1000 employees and were analyzed by means of a structural equations model.