Downsizing: How Prepared Is Your Organisation?

Economic uncertainty continues to push businesses to review workforce size and structure - with many exploring cost reductions through redundancy and reorganisation. But despite how common it has become, downsizing remains one of the most legally and emotionally challenging people processes a company can face.

Getting It Right from the Start

Redundancy must be handled carefully to avoid risk of claims for unfair dismissal or discrimination. Employers are required to:

• Clearly identify legitimate business reasons.

• Follow fair consultation and selection procedures.

• Offer alternative roles where possible.

• Provide accurate redundancy calculations and notice periods.

Any misstep, even a small procedural error, can lead to reputational damage and costly tribunal claims.

Communication and Culture

The tone and transparency of communication can determine whether a redundancy process maintains trust or fractures it. Employers who engage early, explain the rationale, and treat people with respect are far more likely to retain morale and productivity.

Manager training plays a key role. Leaders need confidence to handle difficult conversations, address emotions, and manage change compassionately.

Planning Ahead

A structured approach helps minimise disruption:

• Scenario planning - map business impact before announcements.

• Legal review - ensure compliance with redundancy and consultation law.

• Employee support - offer redeployment options, outplacement, or career transition advice.

• Post-change strategy - focus on rebuilding engagement and clarifying roles.

At DCG, we support employers through every stage of restructuring. From consultation and documentation to communication and compliance reviews - ensuring changes are handled lawfully and with integrity.