Companies restructure or downsize to conserve resources and cut expenses, generally because the marketplace has become viciously competitive and there's no longer any way to stay profitable without significant changes. (Restructuring nearly always means downsizing in some way.) Sometimes these are desperation measures made in an attempt to pull the company back from the brink of bankruptcy or closure. While an acquisition or a merger generally has benefits for both companies, individuals pay the price. Some jobs will disappear when your company or even only your department merges with another.

Restructuring and downsizing have become more the rule than the exception in today's business world. Industries change rapidly, technology changes rapidly, and companies across industries have learned that survival means being nimble. Companies must meet opportunities and demands, and employees must be ready to be shaken up along the way. Even stodgy industries like insurance are changing seemingly overnight. New consumer trends mean new expectations for all kinds of products and services, from computers to life insurance.

Open the Channels of Communication

Communication is critical in times of challenge. As much as possible (and only when the company is making the information available to employees), managers should try to let people know what actions the company is considering and how these actions might affect individuals. As a downsized or restructured department moves forward, it's important for the manager to be sensitive to workflow, personality conflicts, confusion over who does what, and potential problems.

The restructured group might perceive its manager as somewhat of a stepparent, with partiality toward his or her original employees. If you are this manager, you might feel damned if you do, damned if you don't. Employees are likely to accuse you (or, less personally, the company) of overworking them to increase profits. Sometimes there is a grain of truth in this perception; the company wouldn't have downsized in the first place if it could support all of its resources. Doing more with less, whether equipment or people, is both a challenge and a goal.

Protect Yourself

Major changes in your company will undoubtedly lead you to reconsider your own career. Although you must be cheerleader, mediator, parent, and coach for your employees, you might not believe in the company's new direction. When departments are restructured, managers are sometimes among the first to go as the company attempts to shave costs by retaining the people who actually do the work. You need to be ready to move within the company or to another company. This is the reality of the marketplace.

Companies want loyalty, but at the same they expect us all to accept change and be ready to move. They are not there to provide us security for life. You need to keep your professional skills current. Stay abreast of current thinking and technology, both in your field and in general. These are the factors that will help you make a move when you need to. There is nothing sadder than a person with twenty years in at the Big Corporation who knows nothing beyond how to survive at the Big Corporation.