Aoife Mollin
Redundancy decisions are never easy and sometimes are outside of your control as a leader. Yet across the tech sector and beyond, they have become a reality many leaders now face. Economic pressure, shifting market demands, restructuring, and mergers have led to widespread workforce reductions over the past number of years.
What sets strong leadership apart in these moments is not the decision itself, but how people are led through it.
Redundancies affect far more than those who leave. They create uncertainty, emotional stress, and disruption across entire teams. For leaders, the challenge is navigating complexity: balancing empathy with clarity, compassion with performance, and short‑term delivery with long‑term trust.
How leaders show up in these moments leaves a lasting impact on culture.
The Leadership Impact of Redundancy
Redundancies test leadership credibility. Employees are watching closely:
- How transparent are leaders?
- How are people treated as they leave?
- Is there honesty about what comes next?
- Do leaders acknowledge the human impact, or avoid it?
People don’t expect leaders to have all the answers. They do expect integrity, consistency, and presence.
Handled poorly, redundancies can lead to disengagement, increased attrition, and a breakdown in trust. Handled well, they can — paradoxically — strengthen belief in leadership and create a more resilient organisation.
Leading Those Who Are Leaving
How an organisation supports people through redundancy sends a clear signal about its values.
Leaders who prioritise dignity and clarity for those exiting create a ripple effect of trust among those who remain. This is not just about process; it’s about how people feel when they leave.
Effective leadership support includes:
- Clarity and respect in communication, avoiding uncertainty or mixed messages
- Practical transition support, such as career coaching or outplacement, to help individuals move forward confidently
- Recognition of contribution, acknowledging the value people have added — even when the business direction changes
- Emotional awareness, understanding that redundancy is not just a professional loss, but often a personal one
Leaders don’t need to over‑explain decisions, but they do need to show that people matter beyond their role.
Leading Those Who Remain
Once redundancies are announced, the leadership challenge increases.
Remaining employees experience “survivor syndrome”: guilt, anxiety, and questions about their own future. At the same time, leaders may need the team to take on more responsibility, adapt quickly, and maintain momentum. This is where leadership attention matters most.
If uncertainty is left unaddressed, motivation and performance decline. Research has shown that downsizing a workforce of 1% can lead to a 31% increase in turnover in the following year. Organisations can also see a 41% decline in job satisfaction, a 36% decline in organizational commitment, and a 20% decline in job performance.
The message for leaders is clear: what happens after redundancies determines whether teams stabilise or erode.
What Effective Leaders Do Differently
1. They Communicate with Purpose, Not Perfection
During times of change, silence creates stories — and rarely positive ones.
Strong leaders communicate early, clearly, and consistently. They explain the why behind decisions, outline what is known, and are honest about what is still evolving.
Transparency doesn’t mean sharing every detail; it means avoiding false reassurance and keeping people informed of how changes affect them, their work, and the wider strategy.
Most importantly, leaders remain visible. Regular check‑ins, open dialogue, and space for questions help people feel anchored during uncertainty.
2. They Address Career Anxiety Directly
After redundancies, unspoken questions surface quickly:
- Is my role safe?
- Do I still have a future here?
- Should I be looking elsewhere?
Ignoring these questions doesn’t protect morale — it erodes it.
Effective leaders make time for career conversations, not immediately, but intentionally. They help individuals understand how their role fits the future direction of the organisation, where development opportunities exist, and how career paths may evolve.
When people feel seen and invested in, engagement returns.
Career clarity is a powerful stabiliser.
3. They Balance Performance with Humanity
Leaders often feel pressure to “return to normal” quickly. But after redundancy, teams need space — not just to adjust workloads, but to process change.
Strong leaders acknowledge the emotional reality without losing momentum. They set realistic expectations, prioritise effectively, and model healthy behaviour during periods of strain.
Productivity driven by fear is short‑lived. Sustainable performance comes from clarity, trust, and psychological safety.
The Role of Career Clarity in Times of Change
One of the most overlooked aspects of redundancy is its impact on identity. Work is not just what people do; it is how many define themselves.
When teams lose colleagues — or when roles shift suddenly — individuals often begin questioning their own direction. This moment can trigger growth or disengagement, depending on the support available.
Career coaching and structured reflection help individuals regain a sense of agency. When people understand their strengths, values, and decision‑making patterns, they move from reaction to intention.
This clarity benefits both the individual and the organisation.
Leadership through the hard moments
Redundancies are among the hardest moments leaders face — not because they are operationally complex, but because they sit at the intersection of business and humanity.
The leaders who navigate them well are remembered for:
- how clearly they communicated
- how respectfully they treated people
- how honestly they addressed uncertainty
- and how intentionally they invested in those who remained
These moments define leadership far more than times of growth. Because how you lead when it’s hard is what people remember when it matters most.
At AMAResults, we believe that careers — and organisations — are built through clarity. Our programme – Career Move Strategy – is a career coaching programme designed to help individuals to get clarity on what is important to them and develop a clear career strategy that energises them. Our CHESS Method helps them to feel confident about making decisions about their future career by learning from their past choices and decisions. By understanding how they can use their strengths to make clear decisions on what they want in their career. They will have a clear vision of what is important to them, and the confidence to talk effectively about this to secure their next role – whether that is an internal or external role. We can help individuals to move on to where they need to be, where they can continue to develop their potential and their experience in – either in their current role or in a new role.
Click here to get our details and see how we can support your team to focus on their career strategy so that they know what job satisfaction is to them and they are committed to the organisation they work with.
This blog was originally published on https://amaresults.com and can be accessed by clicking here
