The Curious Case of Org. Restructuring

Many companies today are restructuring. For some, it’s about cutting costs and improving EBITDA. For others, it’s about preparing for IPOs or investor scrutiny, while some are doing it for efficiency, automation, or shifting market conditions.

Every company has their own reason to go in for restructuring, and I am no one to comment on why they do it. This post is from the Emotional Fitness lens PoV and how employees need to prepare themselves to brace for impact.

During restructuring exercises, what often gets overlooked is the emotional turmoil employees go through. Spreadsheets may show efficiency. But people experience uncertainty.

Most of the employees impacted during such exercises fall under the mid-senior leadership band with roughly 15–18 years of experience. These roles typically come under the axe: redundant after org restructuring, low performance or low impact roles, support functions that can be automated and roles with high cost but unclear ROI.

Very rarely do you see senior or executive-level leaders getting terminated unless, of course, it’s a mandate from the board, a change in strategy or a serious leadership-level mess-up.

Whatever the reason or role may be, most people getting axed have financial liabilities, children’s education to plan for and are also navigating a tougher job market.

To all those who are perhaps going through the tough phase of being terminated or the ones who may get terminated, just hang in there. I know you may say it’s easier said than done, but believe me, I have worked with many such leaders.

Many leaders stuck in validation seeking, authority fear or overthinking are often those in the middle leadership layer during restructuring cycles. They feel pressure from both directions — expectations from top leadership and accountability for their teams.

So instead of blaming yourself or the company, it may be a good idea to pause and look at things practically. Reflect on your financials, discuss the situation with your partner or spouse and your financial advisor, and set things straight until you find a new role.

Reach out to your network through close contacts. Initiate conversations with Talent Acquisition firms and experts. Upgrade your skills and knowledge.

The decision to get axed was never in your control. But manoeuvring through this difficult phase definitely is.

Take the reins in your hands and turn the situation around. Time will eventually heal the pain and help you move into the next phase of your life with greater clarity, vigour and conviction.

The Curious Case of Restructuring is an age-old tradition — something that I am not in favour of. As SAMAKSH grows, we may restrict it to cutting costs on irrelevant items. People, if terminated, will be let go only on account of performance and behavioural issues.

Balance sheets matter. But people matter more.