Problem
This highly successful business was going through a change in ownership, which in turn created a need for new owners to take steps to improve financial resilience. One of the immediate concerns was reducing the overall workforce by 20 people, including both employees and contractors. This large-scale reduction was essential to align the business’s operational costs with its future strategic goals. The urgency of the situation added complexity, as the entire process had to be completed within a tight deadline. The challenge wasn’t only about cutting staff but also about ensuring that the process was handled professionally, with minimal disruption to both the remaining workforce and business operations. Additionally, maintaining morale among remaining staff was crucial to avoid further impact on productivity.
Solution
We proposed a structured, two-stage redundancy programme, tailored to meet the
new owners’ goals swiftly and effectively. Our approach included:
- Designing a two-step redundancy process that combined voluntary and compulsory measures, ensuring that the business could reduce staff quickly while minimising potential disputes.
- Developing an attractive voluntary redundancy package to encourage sufficient interest and reduce the need for compulsory layoffs.
- Creating a clear project plan to ensure all stakeholders understood their roles and responsibilities, and timelines were adhered to.
- Rolling out a well-thought-out communication plan that transparently conveyed the business challenges and the reasoning behind the necessary redundancies.
- Drafting employee communications for the leadership team to ensure consistency in messaging and clarity around the process.
- Serving as the main point of contact for employee queries, providing support and clarity around the voluntary redundancy process, and managing responses.
- Preparing all formal documentation for the termination of employment, ensuring legal compliance and professionalism.
- Overseeing the compulsory redundancy process, managing communications and any potential fallout.
- Advising the leadership team on supporting the remaining staff through wellbeing initiatives and strong leadership to maintain morale and engagement.
Outcome
In just two weeks, the structured redundancy programme successfully achieved the targeted reduction in headcount. This timely execution allowed the business to streamline its operations, reduce staffing costs, and refocus on its long-term goals.
The outcomes of this approach included:
- Improved financial resilience by reducing staffing costs, better preparing the business to navigate future challenges and invest in growth areas.
- Sustained morale and productivity among remaining employees through a clear communication plan and ongoing support, helping to retain trust within the workforce.
- Preserved business continuity and minimised operational disruptions with a well-executed staged redundancy process and proactive planning.
- Strengthened the foundation for future growth by creating a leaner, more focused workforce, freeing the business from the burden of unsustainable staffing costs.