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What is a restructuring?

Written by Leduc RH | Aug 18, 2025 4:16:50 AM

Definition

A restructuring refers to a significant change in a company’s organizational structure, activities, or workforce, implemented to adapt to a new context, improve efficiency, or ensure long-term sustainability. It can take different forms, such as internal reorganization, mergers, cost reduction, service centralization, or strategic refocusing.

In most cases, restructuring has major impacts on employees, including job relocations, changes in roles, or even layoffs.

 

Why does an organization undergo restructuring?

The reasons vary but often include:

  • Declining profitability or an unfavorable economic context
  • Mergers or acquisitions
  • Major technological changes
  • A new strategic direction
  • The need to optimize internal processes
  • Redeployment of human or financial resources

The goal is generally to better align the organization’s structure with current or future priorities.

 

HR impacts of restructuring

Restructuring often involves:

  • Individual or collective layoffs
  • Changes in roles, responsibilities, or employment status
  • The need for clear and empathetic communication
  • Extra focus on mobilizing the remaining workforce
  • The introduction of career transition programs
  • A review of roles, skills, and compensation structures

It can also create stress, uncertainty, and a sense of instability among employees—highlighting the importance of strong HR support.

 

How can an HR consultant help?

An external HR consultant can assist an organization before, during, and after restructuring by:

  • Analyzing organizational and human impacts
  • Planning sensitive communications
  • Supporting managers in their roles
  • Implementing transition or internal redeployment plans
  • Managing layoffs with dignity and legal compliance
  • Maintaining team cohesion and trust

Their neutral stance allows them to provide objective and professional support at every stage of the process.

 

In summary

A restructuring is a structural change designed to help an organization adapt to new circumstances. It can have significant consequences on staffing, culture, and workplace dynamics, requiring careful planning. An external HR consultant can help minimize risks, support affected employees, and preserve organizational performance throughout the change.