Five Mistakes Companies Make During Redundancy (And How to Avoid Them)

Let’s not pretend redundancy is easy. For the people impacted or for the leaders delivering the news. No matter how necessary the change is, it brings discomfort, emotion and, if mishandled, long-lasting damage to your culture, reputation and people’s trust in your leadership.

Over the years, I’ve worked with many organisations managing redundancy. Some get it right. Many don’t. And while no process is ever perfect, the difference between those who handle it well and those who don’t often comes down to five common mistakes.

Here they are…along with what to do instead.

1. Not Communicating Early Enough

Silence breeds anxiety. The moment people sense change, their minds start racing — “Am I safe?”, “Is my role at risk?”, “What aren’t they telling us?”

And here’s the thing: once people start to feel uncertain, they disengage. Productivity drops, trust weakens, and rumours take over.

What to do instead:
Be open, even if all the answers aren’t in place yet. Share what you can, when you can. People don’t expect perfection, but they do value honesty. Regular, human communication, without jargon or spin, makes a huge difference to how people experience the process.

2. Over-Focusing on Process and Forgetting the People

Yes, redundancy is a legal process, but it’s also a deeply emotional one. Too often, companies get so caught up in policies and checklists that they forget they’re dealing with real people facing real upheaval.

The result? Meetings that feel cold. Conversations that feel transactional. And employees who feel like they’re being pushed out, not supported through change.

What to do instead:
Balance structure with compassion. Make sure your managers are equipped to lead difficult conversations. Offer space for questions and emotions. Most importantly, remind your people that they are more than their role.

3. Neglecting the People Who Stay

Redundancy isn’t just tough on those leaving. The “survivors”, the colleagues left behind, often feel uncertain, guilty, or even resentful. And yet, they’re expected to carry on, business as usual.

It’s no surprise that many consider leaving, too.

What to do instead:
Acknowledge the impact on your wider team. Rebuild trust through open dialogue, clarity around the future, and visible leadership. Give people time to process what’s happened and the reassurance they need to re-engage.

4. Providing Little (or No) Support to Those Leaving

Handing someone a redundancy letter without meaningful support can feel like a rejection, like the business has given up on them. And in the age of employer reviews and personal networks, how you treat leavers doesn’t stay private.

What to do instead:
Offer outplacement support. Even a small gesture, a coaching session, help with CVs, or access to job search tools, tells your people: “We care. We want to help you land on your feet.” That message matters, both for those leaving and for those watching.

5. Rushing the Process

Under pressure, it’s tempting to move fast. But when companies rush redundancies, without proper planning, consultation or communication, the fallout is significant. You risk damaging morale, triggering legal issues and making an already tough situation worse.

What to do instead:
Pause. Plan carefully. Understand your legal obligations, yes, but also take the time to consider how this experience will feel for your people. Build in touchpoints, support systems, and clear messaging. Redundancy done well takes care and intention.

Final Thoughts

There’s no sugar-coating it – redundancy is one of the toughest parts of leadership. But it’s also an opportunity. An opportunity to lead with compassion, to show integrity, and to do right by your people, even when the circumstances aren’t ideal.

Get it right, and you won’t just protect your brand or reduce risk. You’ll earn trust, loyalty and respect that lasts well beyond the change itself.

And that’s worth getting right.