A new wave of restructures is quietly reshaping the business landscape. But while job titles and org charts may shift, one thing often stays the same: the emotional toll on people. And when leaders get it wrong, the cost isn’t just financial – it’s cultural, says business psychologist Christen Gilchrist.
Whether driven by financial pressures, market repositioning or the realities of post-growth consolidation, organisational restructures are back on the table for many leadership teams. Yet what many fail to recognise is this: restructuring is not just a structural exercise – it’s a psychological one.
The hidden risk is the aftermath
“Restructures are often designed to make businesses more efficient,” says Christen. “But if you don’t actively support people through the emotional impact, what you save on the balance sheet, you often lose in productivity, morale, and trust.”
Gilchrist, who advises senior leaders through complex transitions, says the pattern is predictable. “Leaders do the pre-work: the cost models, the new role profiles, the legal templates. But they underestimate the need for transparency, individualised support, and cultural repair afterwards.”
This, she explains, is where things begin to unravel. “It’s not the restructure itself that creates disengagement – it’s the silence that follows. Employees are left unsure where they stand, leaders don’t re-establish psychological safety, and soon you’re dealing with quiet quitting, talent loss, or worse – public reputation damage.”
Communication must start long before change is announced
Most businesses understand the legal necessity of consultation. But Gilchrist says that isn’t the same as communicating well.
“Communication during a restructure isn’t just about compliance. It’s about clarity, trust, and leadership credibility. That means having a single, consistent message across every level of leadership, and preparing managers to hold emotionally intelligent conversations – not just deliver the news.”
And it must start early. “Before you announce a restructure, every leader in the business needs to understand the ‘why’ well enough to explain it confidently. Ambiguity breeds anxiety and in the absence of a clear narrative, people will write their own.”
Don’t stop at ‘Business as Usual’
One of the most common mistakes Gilchrist sees is leaders assuming the work is done once the restructure is complete. “There’s often a quiet assumption that people will just ‘move on’ once the new structure is in place. But that’s not how humans work.
“After a restructure, people are grieving the old way of working – and trying to understand their place in the new one. That’s the moment to double down on culture, not abandon it.”
This means:
- Re-establishing team norms and expectations
- Supporting managers with the tools to lead through change
- Creating space for feedback, learning and sense-making
- Reaffirming the organisation’s purpose and values in real terms
And crucially: not assuming resilience without investing in it.
Treat restructures as an organisational diagnostic
Gilchrist also encourages leaders to view restructures as a rare diagnostic opportunity. “When you’re running development centres or consulting with leaders about new roles, you start to see patterns. The same behavioural gaps, the same leadership derailers, the same cultural tensions.
“So rather than seeing these processes as individual assessments or HR exercises, we should be asking: What do these patterns tell us about our organisational capability? What development do we need at scale?”
This systems-level thinking, she argues, is the key to not just surviving change, but growing from it.
Leading with care and clarity
At the heart of it, Gilchrist says, good restructure leadership comes down to two things: clarity and care.
“People can handle change – even difficult change – if they understand why it’s happening, what it means for them, and how they’ll be supported through it.
“In a world where the pace of change isn’t slowing down, organisations that lead with honesty, empathy and rigour will always come out stronger.”
Christen Gilchrist is a Business Psychologist who works with organisations across the UK to build leadership capability, culture, and change readiness. She specialises in helping businesses navigate growth, restructure, and transformation in ways that protect people and performance.
