Reorganization and restructuring
Reorganization and restructuring
Reorganizing as an employer - keeping a grip on change
Nearly 60% of organizations face reorganization during the course of their existence. Not because they fail, but because circumstances change. Therefore, reorganizing is not just about saying goodbye to employees, but primarily about redesigning the organization so that it can function again and move forward.
In this post, you will read why organizations reorganize, what forms a reorganization can take, and what legal concerns you should consider as an organization or HR.
Click here if you are an employee or works council dealing with a reorganization
What does reorganization mean?
At its core, reorganizing means rearranging the legal, operational or ownership structure of your organization.
The goal is usually to improve financial stability and strengthen your position in the market. This can take different forms, such as winding down activities, rearranging the personnel organization or management structures or, for example, a merger with another organization.
Why are you reorganizing?
In a dynamic economy, you can find yourself under unexpected pressure as an organization. Reorganization is then important for several reasons:
- Financial improvement
When results are under pressure, reorganization may be necessary to control costs or wind down loss-making units. - Adapting to the market
Markets are constantly changing. By reorganizing in time, you ensure that your organization stays in tune with new developments. - More efficiency
By streamlining processes, you can work more efficiently and allocate resources more effectively. - Maintaining trust
In uncertain times, it is important that employees and other stakeholders maintain trust in the organization. A carefully designed process helps in this regard. - Preparing for growth
Even if you want to grow, reorganizing may be necessary to lay a solid foundation for the future.
Experience with complex and sensitive projects
We have supervised reorganizations involving multiple departments, job groups and participation bodies for many years.
Our experience shows that successful reorganizations are not determined by speed alone, but by realistic preparation, consistent execution and clear communication at the right times. Thinking carefully in advance about the steps that follow creates calm and overview in the process.
Our approach in three steps
1. Clear analysis and preparation
We carefully identify the need for reorganization and translate the desired future organization into a legally tenable plan. In doing so, we look explicitly at risks, feasibility and coherence. In doing so, we also identify which key employees and roles must be retained.
2.Guidance with an eye for people and organization
During implementation, we supervise, among other things:
- determining which employees will become redundant by applying the principle of attrition
- the interpretation and recording of the redeployment obligation
- advisory processes with the works council
With attention to pace, clarity and diligence.
3. Careful completion
We support in UWV procedures, settlement agreements and social plans, so that the process is completed correctly in legal terms and peace is restored within the organization.
Common reorganization scenarios
We advise on:
- Restructuring of teams or departments
- Reorganization after merger or acquisition
- Closure or relocation of establishments
- Dismissal rounds due to digitalization or automation, for example as a result of AI
In Conclusion
Reorganization can seem overwhelming, but it is often necessary for an organization to remain healthy and continue to grow. A reorganization is not just about saying goodbye, but primarily about creating space: for an organization that works again, that can adapt to new circumstances and that is ready for the future.
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Case study
Reorganization in the technology sector
A marketing company saw that more and more customers were self-managing their marketing activities using AI tools. This reduced the demand for traditional services and put pressure on the cost structure.
The organization was faced with the task of adapting the personnel structure to this new reality, without unrest or legal risks. This involved a reorganization in which approximately 15% of positions were eliminated.
We supported HR and management in developing a new organizational plan and making it a reality. With a new organizational plan, the company has a leaner, future-oriented set-up that is in line with the current market. Critical roles and knowledge have been retained, several talents have been redeployed internally and the organization works with clear responsibilities.
The reorganization was completed without legal proceedings, allowing management and HR to shift their focus to innovation and continued growth.
Case study
Reorganization in the technology sector
An international technology company had to lay off 15% of its staff after losing a major client.
We guided:
- The substantiation of business economic necessity
- The advisory process with the works council
- The assessment of job groups and reflection
- The drafting of settlement agreements
- Communication with employees
Result: a carefully conducted reorganization without procedures or prolonged resistance.
View our other areas of expertise as well
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