Redundancies Without Reputational Risk: A Guide to Leading with Empathy and Integrity
As a founder or business leader, the decision to restructure is one of the hardest you’ll face.
In smaller organisations, where close-knit teams often blur the lines between personal and professional relationships, the impact can be especially profound. In these moments, it’s critical to strike a balance, leading with clarity, while staying deeply human. A thoughtful, people-first approach will preserve your brand’s integrity and reinforce your credibility as a leader when it matters most.
So, how can you go about restructuring and making redundancies whilst minimising risks?
Above all, transparent and empathetic communication is essential to keeping your team engaged and informed throughout uncertain times. Sharing as much as you reasonably can, especially around finances, helps build trust without spreading fear. Be honest but measured, explain how market conditions are impacting cash flow, and offer context through recent wins and losses in the business. When employees understand the bigger picture, they’re more likely to stay aligned with you on the journey. If restructuring becomes necessary, it won’t come as such a shock, it will feel like part of a shared reality, not a sudden decision.
Being visible and present as a leader in tough times in important.
Don’t retreat into your leadership silos or shy away from your people. Be available and engaged through team check-ins, town halls or informal chats. Showing that you are present signals that you are going through this with your people and not doing it to them.
If you need to restructure, it’s critical to acknowledge the deeply human impact of such decisions. Jobs are not just titles or functions, they represent people’s livelihoods, identities, and sense of purpose. The way leaders handle this process can profoundly shape how it’s experienced. When leaders demonstrate genuine care and empathy, it softens the emotional toll and reinforces trust, even in the most difficult circumstances. Use language which reflects compassion, not just compliance. Speak and act in a way that shows your people they are valued as individuals, not just resources. This human-centred approach sends a powerful message which is ‘you matter beyond your role’.
Supporting those impacted, before, during, and after a restructure, is not just the right thing to do but it sends a powerful statement about your company’s values. The way you care for people in difficult moments has a lasting influence on both your internal culture and external employer brand. Throughout the process, make it easy for employees to access meaningful support, whether through line managers, mental health first aiders, Employee Assistance Programmes, or healthcare providers. Signposting these resources clearly signals that your people’s wellbeing matters. Beyond the immediate transition, investing in outplacement services, like those offered by JourneyHR , helps departing employees regain confidence, direction, and momentum. Outplacement isn't just about finding the next job; it’s about restoring dignity and offering real support at a time when it’s most needed. This supports a stronger brand reputation, lasting goodwill, and a workforce that knows you lead with empathy.
Once the process is complete, shift your focus to reengaging and reinspiring the remaining employees.
Lead decisively with a company-wide updates, acknowledge what has happened, show empathy, and clearly articulate the path forward. This is a critical moment as uncertainty can lead to disengagement and natural attrition if left unaddressed. Use this opportunity to rally your team. Align everyone behind a renewed vision and strategy. Ensure all employees have clear objectives and KPIs for the rest of the year, and invest in building strong, empowered line managers who can support, develop, and retain your top talent. This is your chance to rebuild morale, restore confidence, and create momentum for the future.
If you approach any change management process in a human-centred way you will ensure that exiting employees have the best experience possible and that remaining employees recognise that you have approached the process in the right manner. This can go a long way to activating a positive internal and external brand.