Managing workforce downsizing in the AI era

Workforce change is more complex than ever. Economic pressure, AI adoption and evolving business models are driving more restructures, role redesigns and redundancies, while employees are better informed, better equipped and more likely to challenge decisions, with AI tools at their fingertips.

Acas research shows a third of employers are likely to make redundancies by January 2027, putting more organisations at risk if the process isn’t planned and delivered fairly.

We work in partnership with employers to reduce the risk, combining legal expertise with practical employee relations support.

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Why employers are downsizing

Commercial pressure is forcing organisations to review workforce costs, while the Employment Rights Act is raising the consequences of getting those decisions wrong. HR leaders are expected to move quickly without compromising fairness, consistency or compliance. For employers, that means delivering change at pace while ensuring every decision is fair, consistent and properly evidenced.

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Managing workforce change

Taking a structured approach to workforce change helps:

  • Reduce the risk of tribunal claims and legal challenge
  • Protect employer brand and reputation
  • Maintain employee trust and engagement
  • Strengthen confidence across the retained workforce

When change is unavoidable, we help employers reduce risk and manage workforce change with confidence and compassion.

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Why choose AdviserPlus?

Workforce change now spans employment law, employee relations, manager capability and operational delivery. Most providers support one part of the process. As part of Empowering People Group, AdviserPlus connects employers to the right expertise across the Group, helping them plan, deliver and embed workforce change with greater confidence and consistency.

Whether the decision is downsizing, restructuring, organisational redesign, TUPE or workforce transformation, we can help employers access the practical support needed to manage change with confidence and without increasing risk.

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Plan workforce change with confidence

Workforce change needs to be planned before it is announced. AdviserPlus helps HR teams assess risk, establish fair processes and connect with the right expertise across Empowering People Group, so decisions are consistent, fair and well documented.

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Manage redundancy consultations

Consultation needs to be compliant and meaningful. We help employers run fair, consistent redundancy and collective consultation processes, with the guidance, documentation and case support needed to reduce risk and keep decisions moving.

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Navigate TUPE and restructuring

TUPE transfers and restructuring programmes need to be handled carefully to avoid risk. We help employers manage consultation, restructuring and organisational change with clear processes, practical support and defensible decision-making.

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Support managers through change

Managers play a critical role in how workforce change is experienced. We equip them with the guidance, tools and support needed to handle difficult conversations consistently and reduce the risk of grievances and escalation.

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Evidence workforce decisions

When redundancy, restructuring or workforce change decisions are challenged, organisations need clear evidence to support them. We help maintain documentation, records and audit trails that provide transparency and strengthen decision-making.

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Support employees through change

How exits are handled impacts trust in those who stay. We help employers manage redundancy and change with clear communications, settlement support, career transition and outplacement services that protect trust and reduce risk.

Support for every stage of workforce change

Whether you are managing a small restructure or a large-scale redundancy programme, AdviserPlus can help employers access the right support across every stage of workforce change. As part of Empowering People Group, we connect HR teams with practical expertise across employment law, employee relations and career transition and outplacement. The full range of support can include:

Redundancy strategy and process planning Collective consultation support Individual consultation support
TUPE consultation and transfer support Manager guidance and consultation coaching Selection criteria and scoring support
Employee communications guidance Meeting notetaking and documentation Settlement agreement support
Outplacement and career transition support ER advice and risk reviews Tribunal preparation and audit trail support

This gives HR teams the extra capacity, specialist knowledge and process control needed to manage change without carrying the burden alone.

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Transform your change programmes

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Scale change without increasing headcount

Access specialist HR, ER and legal expertise when demand exceeds internal capacity.

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Deliver change consistently

Practical guidance, processes and expert support help maintain fairness, consistency and compliance across large-scale change programmes.

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Accelerate workforce transformation

Proven frameworks, documentation and toolkits help organisations implement change more efficiently while reducing administrative burden.

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Support people through transition

Career transition support and outplacement services help employees move forward positively while protecting engagement and trust across the wider workforce.

“The AdviserPlus principles and ways of working have formed part of the footprint of change management within WHSmith going forward. We had a great working relationship with the AdviserPlus team who demonstrated lots of flexibility, patience, and super quick response times. We couldn’t have managed this change programme in such a short space of time without them.”

Group Head of People Operations, WHSmith

FAQs

Workforce downsizing is when an organisation reduces the size of its workforce, usually to reduce cost, improve productivity, respond to lower demand, restructure teams or adapt to new technology. It may involve redundancies, redeployment, restructuring, TUPE transfers, voluntary exits or outplacement support.

Downsizing is the broader business decision to reduce or reshape the workforce. Redundancy is a specific employment process that may happen when a role is no longer needed, work has reduced or the business is changing how work is organised.

Employers should explore alternatives first, consult early, use fair selection criteria, document decisions, communicate clearly, support managers and provide practical support for affected employees. Ethical redundancy is about legal compliance, but also about dignity, trust and transparency.

Collective consultation applies where an employer proposes to make 20 or more employees redundant at one establishment within a 90-day period. Employers must consult recognised trade unions or elected employee representatives and observe a minimum consultation period before any dismissals take effect.

Under the Employment Rights Act, employers who make 20 or more employees redundant across the whole organisation and multiple sites will be required to hold collective consultations. This is different from the current rules which state that collective consultations only trigger if 20 or more employees from the same site are impacted by redundancies.

This change is expected some time in 2027. You can find out more about upcoming changes under the Employment Rights Act and download our tracker here.

Where 20 to 99 redundancies are proposed at one establishment within 90 days or less, the minimum period is 30 days before the first dismissal. Where 100 or more redundancies are proposed, the minimum period is 45 days. Individual consultation should also be meaningful and properly documented. See GOV.UK for more details.

Redundancies can happen around a TUPE transfer, but employers need to be careful. Acas says redundancies related to the transfer after employees have transferred must involve both a genuine redundancy situation and an economic, technical or organisational reason involving a change in the workforce.

Outplacement services are career transition support paid for by the employer to help employees affected by redundancy or restructuring move into their next role. Support can include coaching, CV guidance, LinkedIn profile support, interview preparation and job search advice.

Outplacement helps employees move forward with practical support and can help employers protect trust, reduce distress and show that affected employees are being treated with care. It also supports the wider workforce by showing that the organisation is handling change responsibly.

We’ll help you deliver real results

We help our clients to achieve tangible business improvements. Here are just a few…

75%

Cost reduction from outsourcing to our HR advice line

£2.15m

Saving over 12 months from reducing long-term sickness

96%

Of managers would recommend our HR advice line service

92%

Of users advocate our employee relations advice and guidance

Get in touch

Or speak to an HR expert on: 0844 327 2293