A Strategic Guide to Organization Restructuring, Part 1

Author: Ada Tai, MBA, CPHR, SHRM-SCP


I’ve been watching the pace of corporate restructuring accelerate this year, and it’s striking how no sector seems immune. ConocoPhillips is reducing its global workforce by a quarter. Intel is preparing to slash 24,000 jobs in one of the largest shake-ups in its history. Salesforce is eliminating 4,000 positions as it doubles down on its AI strategy. Paramount Skydance, fresh off its blockbuster merger, is shedding up to 3,000 roles; while Hudson’s Bay, a retailer that’s been part of Canada’s identity for more than 350 years, is closing its doors and letting go of more than 8,300 employees. Add to that layoffs at Starbucks, Amazon, PwC, Burberry and even Recruit Holdings, the parent company of Indeed and Glassdoor1, and the picture becomes clear: we’re in the middle of a global restructuring storm, where technology, cost pressures, and shifting markets are re-writing the rules of work.

 

In my recent conversations with business leaders, one theme keeps surfacing: many are contemplating a restructuring of their own. However, they’re not just looking to cut costs; they’re seeking a clear strategy. That’s what this guide is about: how to prepare for restructuring with purpose, clarity, and humanity.


Step One: Define the "Why"

Restructuring is one of the most complex decisions a company can make. Done poorly, it can destabilize operations and damage culture. Done well, it can reset the business for future success. The starting point is always the “why.” What problems are you solving?


Common drivers include:

  • Financial distress - Reducing costs and/or improving profit margin to stabilize the business
  • Market changes - Pivoting toward new products, services, or geographical territories
  • Technology shifts - Re-organizing to adopt AI, automation, or other innovations
  • Efficiency and competitiveness: Streamline structures or flatten hierarchies


The objectives must be specific, measurable, and aligned with the company's long-term vision. This "why" is the foundation for the entire plan and is essential for communicating with stakeholders.


Step Two: Define the “What”

Once the purpose is clear, organizations can proceed to define the scope. Which functions are absolutely critical to preserve? And which areas could be restructured, consolidated, or phased out?


This stage is about mapping priorities. In my work with clients, I often find that once they clarify their non-negotiables, the rest of the plan comes into focus much more easily.


Step Three: Plan the “How”

Too often, companies jump straight to layoffs, but effective restructuring requires scenario planning. Before jumping to layoffs, I’d advise businesses test different options to see which will lead to the best results for their company. This might include a hiring or salary freeze, reduced hours, offering voluntary exits, retraining employees, or re-deploying talent to new roles. Each option carries different financial, operational, and cultural impacts. Running these scenarios before making cuts prevents costly missteps.



Equally important: restructuring can’t be run by a single department in isolation. Organizations need a cross-functional team of leaders, supported where needed by external advisors who bring objectivity and specialized expertise.


Step Four: Don’t forget about the impact on people

Restructuring doesn't end after the final announcement. In fact, what happens next often determines long-term success.


  • For departing employees: Outplacement support protects your brand and helps those affected move forward.
  • For remaining employees: Survivor's guilt, anxiety, and low morale are real risks. Leaders need to clarify roles, rebuild trust, and provide a compelling vision for the future.
  • For managers: Equip them with training on how to lead through uncertainty and engage in difficult, yet empathetic, conversations.


Restructuring is not just a financial event; it’s an emotional one as well. I explored this in depth in my recent blog, “Layoffs Are Inevitable, Abandoning People Isn’t”, where I shared strategies for minimizing the impact on employees and maintaining trust through change. Organizations that recognize this recover faster and retain stronger teams.


Final Thoughts

Restructuring is never just a financial exercise, it’s about re-designing the future of your business. The choices you make from clarifying the “why” to supporting your people will shape not just your balance sheet, but your culture and competitiveness for years to come. This blog has focused on the critical steps to prepare for a restructuring. In my next post, I will discuss the crucial steps in the execution phase. Stay tuned!

 

If your organization is considering restructuring, now is the time to prepare. Our team collaborates closely with leaders to bring structure, objectivity, and empathy to the process. Let’s talk about how we can help you navigate change with confidence.


Reference:

1Intellizence. (2025). Major companies that announced mass layoffs. https://intellizence.com/insights/layoff-downsizing/major-companies-that-announced-mass-layoffs/

I see. I hear. I experience. is a column created by and written by Ada Tai, a chartered member of CPHR Alberta. The column is written in a blog format where Ada and invited co-authors will present their own experiences and interpretations of the world of human resources and its impact on business management. This and the subsequent posts are copyrighted materials by the author(s) and only reflect their personal views, not CPHR Alberta’s.


Author bio: With an MBA Degree, a CPHR, and an SHRM-SCP designation, Ada Tai has been working as an HR professional in a variety of industries for close to 20 years. Through her consulting firm, Ada and the team provide a variety of management consulting services. Ada’s public speaking skills have enabled her to be regularly invited to speak about HR, people management, and career-related topics throughout the province. She is also a well-respected Instructor at local universities.

 

Contact information:

●     Website: https://www.badab101.com/

●     Blogs: https://www.badab101.com/blog

●     LinkedIn: adatai or BadaB-Consulting-Inc

●     Facebook: @badabconsulting

●     YouTube: BadaB Consulting Inc.

 

BadaB Consulting Inc. has been a trusted partner in HR and business transformation since 2011. We provide practical, people-first solutions in strategic HR planning, organizational audits, restructuring, mergers & acquisitions, training, recruitment, policy development, outplacement, and beyond.

Our team also helps organizations prepare for the future with technology strategies that align infrastructure, talent, and long-term goals.

The views and opinions expressed in this blog post belong solely to the original author(s) and do not necessarily represent the views and opinions of CPHR Alberta.



The Halo Effect at Work: When First Impressions Cloud Fair Judgment

By Jessica Jaithoo • August 26, 2025
Author : Veronica Flores, CPHR, Wood Buffalo Chapter In the fast-paced world of HR, we often talk about unconscious bias, diversity, and inclusion. But one subtle form of bias that continues to shape workplace dynamics, often without us realizing it, is the halo effect . The halo effect, as outlined in Canadian Organizational Behaviour by McShane, Steen, and Tasa, is a perceptual bias where our overall impression of someone, often shaped by a single trait, influences how we judge their other qualities. I experienced the halo effect in a way that has stayed with me ever since. As someone who immigrated to Canada from a vibrant Latino community, I brought with me not only my culture and language but also a strong set of personal values: dedication to excellence, deep respect for others, and a belief in the power of organization and continuous improvement. Over the years, I've built a life in Canada and grown professionally. One thing my colleagues quickly noticed? I’m extremely organized—my files are color-coded, I like to automate tasks and improve processes, and I genuinely believe that a tidy environment leads to a clear mind. But one day, that very strength—my love for order—became the only lens through which someone saw me, and not in the way I expected. Our team was switching workstations, and I noticed a new coworker, someone from a different cultural background, standing near their new desk, not quite settling in. I casually asked if they had moved in yet, and they replied, “I’m just waiting for you to clean it first.”  At first, I laughed, thinking it was a joke. But their expression stayed serious. That’s when it hit me: they had assumed I was there to clean their desk. Why? Because I’m Latina? Because I’m tidy? Because I was organizing my own space? I simply showed them where the cleaning supplies were and walked away. But the moment stayed with me, not just because it was uncomfortable, but because it revealed something deeper about how we perceive each other at work. Later, I opened up to another coworker about what had happened. She shared a story of her own: because she is from China, a colleague once asked her to perform acupuncture or massage their neck, assuming she must know traditional Chinese medicine. She was just as stunned as I had been. These assumptions weren’t rooted in malice, but they were rooted in stereotypes. And they show how the halo effect, when combined with cultural bias, can lead to reductive and even offensive conclusions. The Hidden Cost of Snap Judgments The halo effect doesn’t always manifest in such overt ways. Sometimes, it’s as subtle as assuming a soft-spoken employee lacks leadership potential or that someone who struggles with English isn’t as intelligent. These assumptions can influence hiring decisions, performance evaluations, and even day-to-day interactions. For HR professionals, the implications are significant. When we allow the halo effect to guide our perceptions, we risk reinforcing stereotypes and limiting opportunities for others. Worse, we may unknowingly create environments where people feel unseen or misjudged. Strategies to Counter the Halo Effect Here are a few practical ways HR professionals can help reduce the impact of the halo effect in their organizations: Get to know people beyond the surface. Take time to learn about your coworkers’ skills, experiences, and goals. Be mindful of cultural assumptions. Just because someone is from a particular background doesn’t mean they fit a cultural stereotype. Create space for conversations. Sharing stories, like the ones my coworker and I exchanged, can build empathy and awareness. Focus on inclusion, not just diversity. It’s not enough to have different people in the room. We need to ensure everyone is seen and valued for who they truly are. The halo effect reminds us that perception is powerful, but not always accurate. That day in the office reminded me that even positive traits can be misinterpreted when viewed through the wrong lens. And that inclusion means more than just being present; it means being seen clearly. So, as an HR professional, ask yourself: Are you seeing your coworkers for who they really are, or just through the halo of a single trait?

Mental Health in the Agriculture Industry

By Jessica Jaithoo • August 8, 2025
Author : Nicole Mahieux, Nick Canning & Kendal Tremblay Mental health is increasingly recognized as a cornerstone of employee well-being, business resilience and community strength. For HR professionals, supporting mental health is no longer optional—it’s imperative. While conversations around mental health have gained traction in many industries, one critical sector still faces unique and persistent challenges: agriculture. Farmers and agricultural workers play a vital role in food production and national food security. Yet they are among the most vulnerable when it comes to mental health struggles. In fact, they experience some of the highest rates of stress, anxiety, depression—and even suicide. This is not just a personal issue. It's a workforce issue. It's a public health issue. It's a business issue. There are a range of compounding pressures makes farming one of the most mentally taxing professions.  These include: 1.Financial Stress & Unpredictability Unstable markets, weather-dependent outcomes, and shifting government policies contribute to a constant sense of economic uncertainty. 2. Isolation Many farmers work alone and live in rural areas where access to social support is limited. Social isolation increases vulnerability to mental health concerns. 3. Stigma Although mental health stigma is slowly decreasing, it remains a barrier—especially among men, who represent 74% of the agricultural workforce. Traditional gender norms often discourage open conversations or help-seeking.

CPHR Alberta’s Commitment to Supporting Reservists

By Jessica Jaithoo • August 7, 2025
As a proud participant in the Glowing Hearts program , CPHR Alberta continues to champion the value that Canadian Armed Forces reservists bring to our workplaces. Since joining the program, we’ve seen firsthand how supporting reservists not only strengthens our communities but also enhances organizational resilience and leadership. The Value of Reservists in the Workplace Reservists are more than military personnel—they are strategic thinkers, adaptable leaders, and skilled collaborators. Their training equips them with discipline, problem-solving abilities, and a mission-focused mindset that translates seamlessly into civilian roles. Captain McKenzie Kibler of The Loyal Edmonton Regiment exemplifies this. In a recent deployment on Operation REASSURANCE, he developed leadership and operational skills that now enrich his civilian career. Watch his story here. Support, Recognition, and Incentives for Employers Supporting reservists doesn’t mean sacrificing business continuity—in fact, it opens the door to meaningful recognition and financial support. Through the Compensation for Employers of Reservists Program (CERP) , employers can receive grants to help offset operational costs when a reservist-employee is away for 30 days or more. At the same time, organizations that register their reservist leave policies with the Glowing Hearts program are publicly recognized on the Canadian Forces Liaison Council website and receive a certificate of support and digital badge. These benefits not only ease the logistical challenges of supporting reservists but also position your organization as a leader in community engagement and national service. Tools and Templates for HR Leaders To make it easier for organizations to support reservists, CPHR Alberta offers a Reservist Leave Policy Template. This resource outlines eligibility, leave procedures, compensation, and compliance with federal and provincial legislation—making it simple to implement a supportive policy. Access the template through the Member Portal.
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