So, you’ve restructured, what next?
The profound impact of restructuring
Restructuring is often one of the most difficult and emotionally charged experiences for any organisation.
For business leaders, particularly founders with a deep, personal connection to their company, the process can feel like a personal failure, as they carry the emotional weight of tough decisions. At the same time, employees may experience significant anxiety, especially when redundancies are involved. Even those not directly impacted may feel the emotional toll, as the departure of colleagues and friends sends a ripple effect throughout the workplace. The uncertainty and disruption can touch every corner of the organisation.
The restructuring process is often time-consuming and complex, typically involving multiple rounds of financial analysis, organisational design reviews, talent and capability mapping, and people impact assessments. While much of the attention is rightly focused on the design and implementation phases, one critical yet frequently overlooked element, is planning for what comes next. Re-engaging and re-integrating the remaining employees post-restructure is essential to restoring morale, rebuilding trust, and ensuring long-term resilience.
Without a clear and compassionate change strategy, organisations risk undermining both trust and performance. A recent survey by the Institute of Leadership and Management found that employee trust in CEOs dropped to just 51 out of 100 in companies that implemented layoffs, compared to 63 in the average organisation. The same study revealed that 74% of employees feel their leaders lack empathy during times of change, and 55% believe greater empathy would improve retention.
The consequences of poor change management are also well-documented. A review of 39 studies shows that restructuring typically has negative effects on employee wellbeing, both short and long-term. One report found that employees who remain after a restructure often experience increased stress, feelings of insecurity, and higher workloads, making them more likely to leave.
So how can I go about building a strategy to support my remaining employees?
It’s essential to have an empathetic and transparent communication plan in place throughout any restructuring process. Uncertainty often breeds insecurity, and by removing the unknowns, you can bring your employees along with you on the journey.
Showing empathy to those departing can also have a dramatic impact on remaining employees. Ensuring there are outplacement services in place for departing employees shows that you care about them personally and are invested in their future.
In addition, once the restructure is complete, we strongly recommend hosting a company-wide gathering. This provides an opportunity to acknowledge the difficult reality that some colleagues have left, while also helping shift focus toward the future. Reengaging people with the company values, mission and setting a future focus will help to galvanise people and create a sense of renewed community.
To support remaining employees, ensure that everyone has a clear job description and that line managers are equipped to set meaningful objectives and hold performance conversations that address both professional expectations and emotional well-being. Creating space for open dialogue not only strengthens feedback loops but also helps re-engage staff, reduce anxiety, and give people a renewed sense of purpose and direction.
We offer a range of Line Manager training modules designed to build capability in key areas such as effective career conversations, supporting mental wellbeing, and strengthening communication skills.
In addition, we’ve developed bespoke workshops tailored to specific challenges organisations face following a restructure. These targeted sessions ensure that managers are fully equipped to support their teams with empathy and clarity. Not only does this boost manager confidence, but it also helps employees feel heard, valued, and supported, ultimately improving retention of your key talent during periods of change.
It’s also important to consider how you can rebuild a sense of community. This could involve introducing a new rhythm of company or team meetings to encourage regular connection and alignment. Additionally, organising social events or team-building activities can go a long way in re-establishing camaraderie and strengthening relationships across the organisation. These moments of connection can be powerful in helping people move forward together with renewed energy and shared purpose.