Company Restructures

A company restructure is a strategic process where an organisation changes its structure, roles, teams or ways of working to meet new business goals, adapt to market conditions, improve efficiency or respond to growth. It can involve changes to reporting lines, job roles, departments or even redeploying people into new roles – but it doesn’t always mean redundancies. 

Businesses restructure for many reasons, including adapting to market changes, aligning structure with strategy, integrating after mergers, improving financial performance or making processes more efficient. A proactive restructure can help protect the business and ensure the right people are in the right roles to support future growth.

Not necessarily. While some restructures may lead to roles being made redundant, a good restructure often focuses on redeploying existing employees into new or changed roles that better suit future needs, reducing the need for job losses where possible.

Restructuring can have legal implications – especially where redundancies or changes to terms and conditions are proposed. Employers in the UK must consult with affected employees, follow fair processes, apply objective selection criteria, and comply with employment laws to minimise the risk of claims such as unfair dismissal. 

Consultation is a legally required discussion between the employer and employees (or their representatives) when proposed changes could affect roles. It gives employees the opportunity to understand reasons for the restructure, ask questions, suggest alternatives and explore ways to avoid redundancies. 

When an employer proposes 20 or more redundancies within 90 days at one establishment, collective consultation rules apply. This means you must consult with recognised trade union or employee representatives – not just individual staff – and follow statutory minimum consultation periods.

Employees benefit from clear, transparent communication, practical support such as training or redeployment options, voluntary redundancy where appropriate, and wellbeing resources. Organising one-to-one meetings and explaining the business context helps reduce uncertainty and maintain morale.

Employees have the right to fair consultation, to be informed of the reasons for change, and to ask questions or raise concerns. If their role is at risk of redundancy, they may be entitled to statutory redundancy pay, notice periods and consideration for suitable alternative roles. Employers must also avoid discriminatory practices in selection and treatment.

Restructures can involve changes to job roles, responsibilities or terms and conditions, which may require employee consent unless a contract contains specific flexibility clauses. Where changes cannot be agreed, careful handling is needed to manage legal risk and maintain employment relationships. 

Wright People HR supports businesses by planning and managing restructures from start to finish – including designing changes that align with strategy, communicating with staff, conducting legally compliant consultations and transitions, and helping leaders manage change sensitively. Our approach protects your business from risk while maintaining engagement and performance through the change process.