The Uncomfortable Inevitability of redundancies

A simple Google search highlights the inevitability of redundancies in the UK and Ireland. Redundancies at major newspapers and digital media outlets are down after being up, and redundancies in tech are up after being down. The ups and downs—often with a few short years or even months in between—continue in industry after industry and at company after company.

Recent redundancies 

Recently, we’ve seen Amazon lay off thousands of workers and Meta lay off 13% of its workforce. And this inevitability isn’t reserved for international tech giants, LHH are seeing the number of outplacement candidates being referred to us increase over the course of the last 4 months.

With so many potential triggers to force a company’s hand, from external factors such as the economic slow down, to internal factors like cost-cutting or a merger, redundancies are virtually unavoidable over the course of a business’ lifetime. The companies most often susceptible to redundancies are mature organisations, because with their age naturally comes more triggers.

Amazon’s troubles, which could lead to the forced exit of 10,000 workers by 2023, started with sub-par third quarter earnings, along with underperforming business units. Understandably, the possibility of a recession has only exacerbated their fears.

Uncomfortable Feelings

Today, perhaps more than ever, companies are increasingly sensitive to their former employees’ needs after redundancies. Among many C-suite leaders, there seems to be a growing amount of sympathy and support—an acknowledgement that people’s well-being depends so much upon their work and the benefits which accompany it.

Amazon CEO Andy Jassy recently wrote the following to Amazon employees: “I’ve been in this role now for about a year and a half, and without a doubt, this is the most difficult decision we’ve made during that time (and, we’ve had to make some very tough calls over the past couple of years, particularly during the heart of the pandemic). It’s not lost on me or any of the leaders who make these decisions that these aren’t just roles we’re eliminating, but rather, people with emotions, ambitions, and responsibilities whose lives will be impacted.”

Jassy’s comments seem genuine and without pretense, more heartfelt and personal than cold and crafted. And often, these types of comments become action. For years, many companies which have experienced redundancies have offered some degree of outplacement services to support individuals with transitions. Globally, LHH supports 500,000 redundant employees a year transition in their career. 

Of course, it’s those being made redundant who experience the most discomfort, wondering what now, what next, and what if it happens again. While it can be a demoralising feeling, it can also be a feeling of opportunity, particularly when taking advantage of outplacement services. A redundancy, in an unexpected way, can become a catalyst for skill development and even finding a more promising career path.

At the most macro level, redundancies can affect morale across an entire company. No one is immune to its effects, including “survivors” who retain job security. Once the redundancy dust has settled, remaining employee commitment, morale, and satisfaction can collapse, presenting a major challenge for company leadership. While there’s no silver bullet, companies can encourage morale by being honest, communicating openly, offering reassurance about the organisation's future, and empathetically taking care of people who exited the business.

The Complexities

Redundancies are as uncomfortable as they are inevitable. It’s a simple statement. It’s also a stern reminder that, as business leaders, you must remember this and be prepared for the complexities when the time comes.

Read the other blogs in this series

The complexities of a redundancy

The psychological toll of a redundancy and the light at the end of the tunnel