Wow, You Really F*cked That Up: Redundancy Edition

Redundancies happen.

We're all adults here, and while no one ever wants to be on the receiving end of a pink slip, we can all agree that that's just life sometimes. But how you handle your employees on the way out matters just as much as how you welcomed those employees in the first place. Maybe more.

I recently witnessed a masterclass in how not to carry out redundancies. From soup to nuts, the entire process was practically engineered to foster resentment and destroy trust, ultimately damaging the company's reputation from within. How on earth did it all go so wrong?

HR checked out when it should've been all in

I see a lot of hate for HR floating around right now, but I want to make a quick counter-argument even as I set HR up for the blame.

When done right, HR can handle redundancies in a way that balances compassion with the needs of the business. Functionally, it's HR's job to manage a difficult process with fairness and respect, ensuring that the affected employees leave with dignity intact and preserving the trust of those who stay. HR has the right paradigm to turn a messy situation into something constructive and protect the company’s culture and reputation in the process.

But in this case, HR didn’t step up. Instead of taking responsibility for navigating the process with care, they passed it off to the legal department.

Sure, I get how tempting it is to call in the lawyers. Absolutely no one wants to deal with the pain and anger that naturally flows from a redundancy process. But calling in the lawyers to handle emotionally-charged situations is asking a tornado to do your interior decorating.

The legal department took over

Another quick disclaimer before I launch into why this was such a terrible idea: I used to be a lawyer. Family law. Yikes.

I like to consider myself an empathetic person. But even as an empathetic lawyer, it was my job to douse the room in petrol and toss in a lit match.

Redundancies aren’t so different. When companies bring in lawyers to handle what is, at its core, a human issue, the risk is losing sight of the people in the process.

The legalistic approach to redundancy treats employees like problems to be managed, not people who’ve invested their time and loyalty. Here’s what that looked like in this case:

• 'Perp-walking' employees out the door immediately after the HR meeting, cutting off their access to say goodbye or even finish projects with dignity.
• Secrecy and outright lies that left the affected employees blindsided and the remaining employees wondering where their colleagues had disappeared to.
• Bad-faith negotiations focused on paying out as little as possible, aimed at capitalising on the sense of desperation caused by the redundancy itself.
• Intimidating and bullying the affected employees and their solicitors, turning a tough process into a hostile war zone.
• Oppressive gag orders in settlement agreements meant to silence employees from sharing their experiences, fostering resentment and suspicion instead of closure and trust.

You might think, 'Well, they’re just protecting the company.' They’re not. Instead they're...

Turning allies into adversaries

The people you’re letting go are stressed, uncertain and already feeling vulnerable. If you then go on to treat them like opponents in a bad courtroom drama, it can turn even your most loyal employees into your worst PR nightmare.

Today’s redundant employee could be someone you want to rehire when business picks up. They might become a client, collaborator or even a competitor. And they will talk. Whether it’s on LinkedIn, to future candidates or over coffee with a potential business partner, their experience with your company will come up.

What do you want them to say about you?

Eroding your company culture

I’m guessing your company proudly displays its values on the website, probably something about how much you value your people, how teamwork and trust are at the heart of everything you do. While we all know the wording is just corporate fluff workshopped on an executive retreat, the underlying sentiment holds true in every company. Because we're human. We are driven to create connections and relationships with the people we spend time with. We join a tribe. These aren’t just our colleagues, they’re our friends and our mentors.

When redundancies are handled like this, you’re not just letting someone go—you’re tearing a hole in a team you've invested time and money to build. No matter how tough the decision, treating an employee like someone you can simply disappear cheapens those relationships. It leaves a sour taste that lingers on everyone's tongues.

Hiding behind settlement agreements

Settlement agreements with gag clauses might seem like a good way to avoid fallout, but gagged employees don't forget. They may not be able to voice their frustrations publicly or right away, but that resentment doesn’t just disappear. It festers. And trust me on this: they will find a way to make their grievances heard.

Heavy-handed settlement agreements also breed distrust across the entire business. Even just whispers of oppressive gag orders make people start to wonder what the company is hiding. This degrades trust not just among those directly affected but across the entire workforce, leaving remaining employees wondering if they're next. It tanks morale (obviously).

And one final reason you might want to have a lighter touch: overly restrictive agreements can prevent honest feedback about what went wrong. They can hide systemic issues, like discrimination or toxic management, that might come back to bite you later.

Don't repeat your mistakes

Redundancies are never going to win you a “Best Place to Work” award, but they don’t have to blow up your business either. Here’s how to avoid turning a tough moment into a disaster:

• Transparency is everything. Being up-front with employees goes a long way towards maintaining trust, especially when it's bad news.
• Respect isn’t optional. It’s the baseline. If the roles were reversed, how would you want to be treated? Start there.
• Empathy might not save you from tough conversations, but it will make them bearable, for yourself as much as for the affected employee.
• Fairness in negotiations over settlement terms will let employees know they were valued. Being let go is bad enough, they shouldn't leave feeling like they’ve lost a game they didn’t ever want to play.
• Dignity matters. Allow outgoing employees to part on their own terms. A simple, dignified goodbye strengthens their connection to your company and reduces bitterness.

Handle redundancies well, and your ex-employees might still sing your praises. Mishandle them, and they’ll burn your reputation faster than a disgruntled ex posting screenshots of your breakup texts.