Why Do Companies Get Redundancies So Wrong?

In the last three weeks alone, I’ve witnessed almost every side of workforce change and redundancy. I’ve worked with managers grappling with the challenge of telling team members their roles are ending. I’ve seen a senior leader, after years of service, experience poor treatment—delayed communication, uncertainty about their end date, and a disorganised handover. And I’ve heard of an executive being informed by a peer, not their own manager, that they were “about to be let go.”

For organisations that pride themselves on strategy, planning, and execution, it is surprising how often redundancies are managed poorly. While the business rationale may be sound, the way in which these delicate processes are handled frequently undermines the very culture leaders are trying to build.

At its core, redundancy is not simply a structural decision—it is a human experience. For those impacted, it affects not just income, but identity, relationships, and self-worth. Yet too often, organisations let poor communication, clumsy processes, and a lack of empathy overshadow what should be a moment of respect and care.

Some of the most common challenges include:

  • Unclear or delayed communication, leaving people in prolonged uncertainty and unable to plan their next steps.
  • Ambiguity around handovers and responsibilities, creating confusion for both those exiting and those remaining.
  • Insensitive delivery, where people hear rumours or second-hand information before receiving formal communication.

The personal impact of this cannot be underestimated. Stress and anxiety rise sharply. Confidence is undermined. And for those who remain, trust in leadership is eroded, often leaving them disengaged or worried about their own future. The reality is that redundancies are sometimes necessary. But how they are handled is a choice. With foresight, empathy, and consistency, leaders can navigate these moments with integrity. That means timely, direct communication, clarity around timelines, acknowledgment of contributions, and fair treatment. It also requires ensuring that people hear about their future directly and respectfully—not through corridor conversations.

Ultimately, the real test for leaders is not in making difficult structural decisions, but in how they carry them out. Done well, the process can leave people feeling respected, even in difficult circumstances. Done poorly, it creates lasting damage to culture, reputation, and trust.

Redundancies will always be challenging. But they don’t have to be careless. Leaders who take the time to manage them with humanity and clarity set themselves, and their organisations, apart.