How to navigate through the challenges of restructuring and redundancies

Restructuring and redundancies. Two words that send a shiver down any HR professional’s spine. No one enters this field dreaming of delivering bad news. You’re in HR because you believe in people, in growth, in building strong, thriving teams. But sometimes, business realities dictate difficult decisions, and it falls on you to manage them with professionalism, integrity and empathy.

I’ve spent decades working with professionals at all career stages, helping them navigate the difficult waters of redundancy. And I can tell you this: how a company handles restructuring can define its employer brand for years to come. Employees may leave the business, but their experience stays with them. It becomes the story they tell future employers, colleagues and even the internet.

So how can you, as an HR leader, ensure restructuring isn’t just about damage control but a process that safeguards your employer brand, retains trust and treats people with dignity? Here’s what I’ve learned.

The impact of redundancy is deeply personal 

Redundancy is about far more than a loss of income. It’s about identity, security, self-worth. People lose their colleagues, their routine, their purpose. Some even liken it to bereavement. 

Elisabeth Kübler-Ross’ grief model is well known in healthcare and psychology circles, but I see it play out all the time in redundancy cases. Employees experience denial, anger, bargaining, depression, and finally, acceptance – but not always in a straight line.

Loads of businesses make this mistake: assuming that employees process change in a neat, linear fashion. They don’t. Your role as an HR leader is to support employees during these emotional stages, not rush them through a transactional checklist.

Be open, be human and be prepared to handle reactions that aren’t always rational or polite. Also, give managers the tools and training to have compassionate, constructive conversations. This isn’t just about scripting redundancy announcements, it’s about listening, validating emotions and providing a roadmap for what comes next.

You must prioritise humans over the process

When redundancies are on the horizon, leaders often focus on business continuity, restructuring plans and legal processes. All important, yes – but what about the people? 

You show a genuine commitment to helping your people regain control of their careers. Timely intervention is the first golden rule. Early access to outplacement support helps individuals move from shock to action more quickly, reducing stress, anxiety and the risk of widespread disengagement. 

Mental health also matters deeply in this process. Redundancy impacts far more than finances, shaking a person’s entire foundation. Providing professional emotional counselling helps individuals process their feelings, manage anxiety and find their footing.

This is where outplacement support becomes indispensable. It gives the structured, practical guidance of career coaching, minimising that sense of overwhelm employees feel when they’re thrust back into the job market. At City CV, for example, our support includes:

  • Personalised career coaching and CV development
  • Job search strategies and networking techniques
  • Interview training and personal branding advice
  • Access to our Career Refinery portal, which is packed with e-learning resources 

But most importantly, our outplacement support meets employees at the different stages of their emotional journey. I’ve worked with people who have leapt straight to acceptance, eager to explore new opportunities. And I’ve worked with others who were stuck in denial or anger, and needed time to process their emotions before transitioning.

External outplacement support creates a safe space for these employees to talk, one outside of the organisation. Because, even with the best intentions from HR, employees may feel hurt, betrayed or simply unable to open up to anyone within the company. And this support is 100% free to the individual, removing financial strain when money is already a concern.

A redundancy letter isn’t the end – it’s the beginning of something new

One of my biggest irks is when redundancy is treated as the end of an employment relationship. That approach cuts the connection, erases goodwill and wastes the chance to leave a positive imprint. Remember, for the individual, they’re starting an entirely new chapter, and what the organisation does determines whether that chapter will be successful or strained.

With the right encouragement, redundancy can be a turning point. It sounds like window dressing, but I’ve seen the proof of it constantly: individuals initially feel lost and abandoned, but then discover new career paths, start businesses or pivot into more fulfilling roles.

You must frame redundancy as a transition, not an ending. A great way to reinforce this mindset is through targeted support that inspires individuals to own their next chapter. It goes beyond updating CVs or polishing LinkedIn profiles. It’s about building them back up, restoring their identity, giving them everything they need to confidently navigate the modern job market – especially those who have been out of it for a while and may struggle with the new rulebook or increasing digitalisation.

Platforms like City CV’s Career Refinery portal work magic here. I set it up to offer on-demand e-learning resources, expert guidance and even live jobs so that your people can move forward with clarity and purpose, at a pace that suits them.

How you handle this impacts your employer brand for years to come

HR professionals know that a company’s reputation isn’t built in times of stability; it’s forged in fire. How you handle redundancies sends a powerful message to the employees who stay, the stakeholders keeping score and the sought-after candidates looking at you in the market. 

Employees who feel abandoned will talk. They’ll share their experiences on Glassdoor, LinkedIn and with peers in the industry. And those who remain will be watching closely. If their departing colleagues are treated poorly, job satisfaction and job performance will plummet (by 41% and 20% respectively).

If you want to protect your employer brand, prioritise transparency, fairness and tangible support. Invest in quality outplacement services. Offer personal branding, career coaching and mental well-being resources. Demonstrate that you genuinely care.

Outplacement is way more than an employee benefit 

Too often, outplacement is seen as a ‘nice-to-have’. But without it, I’ve seen companies destroy engagement levels and tank their reputation in the talent market. So it goes far beyond a ‘nice-to-have’ that supports redundant employees – it’s actually one of the most strategic moves you can make as a business.

Companies that provide quality outplacement support see the impact in multiple ways: 

The key to getting outplacement right is finding a provider who aligns with your company’s values. Their approach must be personal, flexible and designed to empower departing employees at every stage of their transition, while also safeguarding your organisation’s culture, reputation and long-term success.

It’s why I structured City CV’s outplacement services the way I did – with a blend of tailored support for individuals and strategic benefits for businesses, ensuring both employees and employers emerge stronger and more resilient.

HR’s role in restructuring

HR professionals have more influence over how restructuring unfolds than they realise. Whether the organisation’s reputation, culture and talent pipeline are enhanced or damaged can be meaningfully influenced by your approach. 

By leading with transparency, providing robust outplacement support and building trust with remaining employees, HR can turn an undeniably difficult situation into a moment of opportunity, for individuals and for the organisation as a whole.

And don’t forget – City CV is here to help. If your organisation is facing restructuring, let’s have a conversation about how we can support you. 

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