How to lead through redundancies – and rebuild trust and culture

“What defines great leadership isn’t how we perform in growth years – it’s how we lead with fairness and courage through moments of loss.”

Most of us don’t expect our biggest leadership lessons to come from moments of loss, but they often do.

In an era where restructures and uncertainty have become part of working life, how we lead through them defines the culture we leave behind.

When leadership meets redundancy

In today’s corporate environment, change has become the norm. Data shows around 3.5 people per 1,000 employees were made redundant in May to July 2025 – a 12% rise since 2021, reflecting how digital transformation and economic pressure continue to reshape organisations.

For any leader, overseeing redundancies is one of the toughest tests of empathy and professionalism. Through years of transformation – technological, structural and cultural – I’ve learned that leadership is no longer just about direction; it’s about connection. No training fully prepares us for leading through uncertainty, when we carry the weight of people’s emotions as well as results. In those moments, our values become more than words – they become our compass.

Three ways to lead through redundancies fairly

Through experience, I’ve learned that the leaders who handle redundancy best combine structure and humanity. Here are three lessons for anyone preparing to navigate such a process:

• Clarify the ‘why’: Understand the reason behind the change, and communicate it clearly and consistently. Mixed messages destroy trust more quickly than any tough decision.
• Prepare and plan: Take time to prepare, map the process and practise your communication. A clear plan turns anxiety into calm and helps everyone feel the process is fair and steady.
• Lead together: You’re not alone. Partner with HR and your peers. Bring trusted colleagues into the room to review decisions collectively. Shared ownership builds fairness, integrity and confidence across the team.

Leading through redundancies with structure, empathy and collaboration shapes not only how people leave, but how those who remain rebuild trust and culture afterwards.

Leading fairly is the first step – but true leadership begins after the change, when rebuilding trust becomes your greatest test.

Rebuilding psychological safety

As Amy Edmondson’s research on psychological safety shows, when trust is shaken, people’s instinct is to protect themselves, rather than contribute openly. After a difficult process such as redundancy, it’s natural for teams to become quieter and more hesitant – acting not out of disengagement, but self-protection.