I thought everything was going well. Suddenly, I’m redundant. Why?

Redundancy is one of the most professionally and emotionally disruptive experiences an employee can go through. One day, you’re part of the team, delivering value, and the next, you’re told your role is no longer needed. It feels personal, but in most cases, it isn’t.

While redundancy is sometimes unavoidable, understanding why it happens can help you prepare for change, challenge unfair practices, and navigate your next steps more effectively.

The three main drivers of redundancy

1. Financial survival – the “we’re going bust” scenario

When a company is in financial distress, difficult decisions have to be made quickly. Employee salaries are often one of the biggest costs, and reducing headcount can be the fastest way to keep the business afloat.

Key considerations:

• Cost-cutting needs to happen fast to ensure survival.
• Redundancies in this scenario are rarely about individual performance.
• A business in crisis may not be a good place to stay long term, even if your role survives this round of cuts.

2. Strategic shifts – your role is no longer needed

Businesses don’t stand still, and neither do the roles within them. A company might change direction, embrace new technologies, or restructure, making some roles redundant. This isn’t a reflection of your performance, but it is a sign that you need to act.

Common causes of strategic redundancy:

• Mergers and acquisitions – duplicate roles appear, or the company refocuses on new priorities.
• Technology advances – automation, AI, or new systems reduce the need for certain jobs.
• Market changes – a business exits a market or stops offering a particular service.
• Restructuring – a company streamlines operations or outsources functions.

If you find yourself in this situation, don’t wait for the official announcement. Recognise the early signs, assess your transferable skills, and explore opportunities within or outside the business.

3. False redundancies – when it’s really about performance

Not all redundancies are genuine. Sometimes, businesses use redundancy as a way to remove underperforming employees without going through the formal performance management process.

Why does this happen?

• Avoiding performance management hassles – performance improvement plans take time and effort.
• Fear of legal action – firing someone for performance can carry legal risks, so redundancy seems like a safer alternative.
• Lack of managerial courage – poor leadership means some managers avoid difficult conversations about performance.

This approach carries ethical and legal risks, and employees should be aware of their rights. If redundancy is being used as a smokescreen for performance management, it’s important to understand whether you have grounds to challenge it.

So, who decides I should be on the list?

Redundancy isn’t just about cutting costs—it’s about deciding who stays and who goes. The selection process varies, but common factors include:

1. How much does the business need to save?

   • People are a major cost, and for cost-cutting to be effective, it has to be targeted. True redundancy removes roles, not individuals.

2. Who stays and who goes?

   • Last in, first out (LIFO) – once common, but now seen as outdated.
   • Performance and skills – employees who contribute more to the company’s future are often retained.
   • Versatility and retraining – those who can adapt to new roles may be redeployed rather than made redundant.
   • Protected characteristics – redundancy must not be discriminatory.

3. Legal and ethical considerations

   • Consultation periods, severance packages, and employee rights vary by country but are particularly structured in Europe.

What can you do as an employee?

If redundancy is a possibility, staying informed and proactive is your best defence.

1. Watch the signs

• Is your company struggling financially?
• Are departments being restructured or roles being merged?
• Are new technologies making your role less critical?

2. Keep your skills relevant

• Skills become redundant faster than ever. Ask yourself: Do I really want to do this job long term, or should I retrain?
• Invest in learning new skills that are in demand in your industry.

3. Take control of your own career

• If your company is changing, explore internal opportunities before waiting to be made redundant.
• Network proactively—within and outside your industry—to keep options open.
• If you are made redundant, frame your exit positively: "The company shifted its strategy, which created an opportunity for me to explore new challenges.”

Final thoughts

Redundancy is rarely personal, but it can feel that way. The key to navigating it successfully is understanding why it happens, staying aware of your company’s direction, and ensuring your skills remain relevant.

A job loss isn’t the end—it’s a transition. How you handle it determines what comes next.