One of the biggest challenges for leaders and HR teams in 2025 is redundancies and restructuring. The incoming employment legislation and a stagnant economy have impacted finances. As a result, many businesses are exploring efficiencies that will lower costs. As salaries are typically one of the largest outgoings, cuts to the workforce are inevitable. This isn’t an easy prospect, so how can leaders handle restructuring and redundancies with sensitivity?
Experience in Change Management
Restructuring may result in changes to job responsibilities, department, workplace or pay. All of which means change and a level of uncertainty for employees. The potential change following redundancy is even greater and employees will have fears about whether and how their lives will be impacted. Therefore, this process is best handled by those with experience in change management.
If this is your first time leading a restructuring or redundancy process, it can be valuable to access some training or coaching. This can equip you with the skills needed to handle the situation professionally and with empathy.
Minimise the Impact of Restructuring & Redundancies
When changing or cutting roles, it is necessary to understand and comply with legalities such as notice periods and pay structures. Equally, you must follow proper procedures to ensure the process is fair. However, you also need to factor in the human element. The decisions will impact your team’s life and will be a cause of stress. So, how can you minimise the impact on them?
Transparency & Communication
It’s important to be transparent from the start. Bring the whole team together to explain the situation and present the options that you’ve identified. Explain that the plan isn’t final, and welcome ideas and feedback.
Facing the team with this news will feel daunting and an easy step to skip. However, involvement gives everyone a chance to share their views. It makes the process seem fairer and can ally fears. What’s more, the alternative is the team hearing the news through rumours, which can quickly escalate out of proportion.
I urge you to keep communication channels open and provide a place of psychological safety for honest discussion. What’s more, actively listen to what is said. Everyone wants to be heard and they may raise valid and insightful points that inform your next steps.
Skills-based Decisions
Fair procedures are essential in difficult situations such as restructuring and redundancies. In a multiple redundancy situation, the process also has to be based on skills, without preferential treatment for individuals or groups. When the process is seen to be fair, it will improve interactions with all employees and protect the reputation of the business.
In my experience, the best option is to use skill assessment tools to prevent unconscious bias and make decisions based on clearly defined criteria.
On this point, I want to add that restructuring or redundancy shouldn’t be used to get rid of poor performers. If you are not satisfied with an individual’s contribution, attitude or behaviours, it should be promptly addressed on a one-to-one basis.
Informing Employees with Empathy
When you have decided who will be affected, arrange an in-person meeting with each individual. As a leader, I believe this is a conversation that you shouldn’t delegate and it must never be conducted via email, text or phone.
Accept that this is a life-changing moment for them, so don’t keep them waiting. Allow them time to respond and keep the focus on them. This isn’t the time to be saying how difficult this is for you, it’s about recognising how difficult it might be for them. They may be upset or angry, silent or loud and you need to allow them to process the news in their way. Then, ask if they have questions and let them know about any support that you’ve put in place.
Support to Aid Career Transition
At times of change, everyone needs practical and emotional support. As an organisation, I’d recommend offering employees access to specialist services. Whether you are announcing redundancies, reducing hours or relocating employees, they could benefit from:
- CV preparation, LinkedIn promotion, job searches & interview techniques
- Financial advice including information on pensions
- Training to upskill them for job transition
This support helps impacted employees to focus on the next steps and ensures that they don’t feel abandoned at a difficult time. I would suggest writing a personalised testimonial for everyone who is being made redundant and sharing your willingness to be a reference. This all helps them to understand that this is a business decision and not personal.
Support with Restructuring & Redundancies
As a leadership trainer and performance coach, I understand the importance of empathic and meaningful interactions in the workplace. In times of change, I can:
Offer career coaching or CPD-accredited online courses to those impactedness in my next article, so keep an eye out if this is of interest.
Provide training to equip leaders with the skills and confidence to manage the human element of the restructuring or redundancy process
Provide skills assessment tools for unbiased decision-making
My support is tailored to your requirements. If this is of interest and you would like to discuss the options, get in touch at info@suegarner.co.uk or 07775 624724.