Redundancy often appears to be the simplest solution for businesses facing economic challenges. Reducing headcount can instantly cut costs and stabilise the bottom line, but the consequences of this quick fix can be severe.
In the rush to downsize, many companies overlook the hidden long-term impacts—like diminished productivity, loss of valuable institutional knowledge, and a damaged company culture. Worse, some businesses fall into the dreaded "rehire cycle," where they are forced to recruit replacements after realising their layoffs have overstretched the remaining workforce.
The truth is, redundancy should always be the last resort. Instead of immediately turning to layoffs, businesses need to strategically assess their operations, focus on process improvements, and invest in developing their existing talent. A more thoughtful approach can help companies avoid the long-term pitfalls of knee-jerk redundancies and build a stronger, more resilient workforce for the future.
To dive deeper into these ideas, read my full article on LinkedIn - The Perils of Redundancy: A Quick Fix with Long-Term Consequences
