The prospect of a company restructuring can be quite concerning, as the outcome is uncertain. There are many possible outcomes of a business restructuring, some of which can have unfortunate results for employees. Here is what happens when a company restructures.
What does company restructuring mean?
Company restructuring is an action taken by businesses when they are preparing to sell, merge, or consolidate their debt. It is a way to eliminate potential financial harm to a company. Restructuring and valuation can involve leadership changes, department changes, layoffs, and more.
What are the possible results of company restructuring?
There are many different outcomes to business or company restructuring. Here are a few common results:
- The elimination of empty positions
- Downsizing/layoffs
- Change of company ownership
- Insourcing new tasks that were previously outsourced
- Adding a new division
- Rebranding
What should you do if your business is restructuring?
When you first hear that your company is undergoing business restructuring, don’t panic! It may not be a bad sign. In fact, company restructuring can even help to propel your career. Here are a few things to do if your company is restructuring:
- Do your research: Gather all of the information possible about the company restructuring. Find out if layoffs will be included in the restructuring, as well as who the decision-maker is.
- Network: It’s important to reach out to industry contacts and put the feelers out for job openings. You may end up keeping your job, but it’s always smart to have a plan B. Besides, you may end up keeping your job and not liking how the company changes.
- Meet with the decision-maker: Once you know who the decision-maker is, it’s important to get on their radar. Know your worth and make sure that the person making decisions about layoffs can see it, too.
Company restructuring can have several benefits on a company. By simplifying a business by cutting out departments, rebranding, or downsizing, a company can become much more efficient and profitable. Business restructuring can even be beneficial for employees by introducing new opportunities.
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