|The purpose of this study is to determine whether there is a relationship between hopelessness and organizational performance; and if so, to evaluate the mediating effect of emotion regulation on this relationship. To test this model, hopelessness, organizational performance, and emotion regulation was measured in employees working in the banking sector. In total, 221 employees completed this study and to test research hypothesis structural equation modeling was used. The current study demonstrated that hopelessness has a significant negative relationship with both emotion regulation and organizational performance. It was also found that emotion regulation has a mediating effect on this relationship where higher emotion regulation decreases its strength. Additionally, t-test and ANOVA analyzes were used to reveal differences between demographic variables and study variables. Efforts of employees to develop their emotion regulation abilities in a variety of situations may play an important role in reducing the negative effects of hopelessness and develop the performance of individuals. The current study presents new insights on the mediating effects of emotion regulation on the relationship between hopelessness and individual perceptions of organizational performance.