The Employees Who Stay Are the Real Test of a Restructuring

Most organizations put enormous effort into preparing for the announcement of a restructuring. They work hard on articulating the business rationale and the investor message. They prepare talking points, media statements, FAQs, legal guidance and logistics for employees whose roles are impacted.

All of that matters deeply, but the long-term success of a restructuring often depends on a different audience entirely: the employees who remain.

They are the ones who will be asked to deliver the strategy now. They will absorb the work, carry the culture, serve customers, manage teams, execute transformation and decide - quietly or explicitly - whether they still believe in where the company is headed.

In many restructurings, these employees are treated as the second wave of communication. First comes the announcement. First comes the support for those whose roles are eliminated. First comes the external positioning.

Then, later, leaders turn to the people who are staying. 

That sequence is understandable. It is also risky, because employees who remain are a primary stakeholder group. And they are watching closely for signals about leadership, culture and their own future.

They are asking questions, even when they do not ask them out loud:

• Do leaders have a real plan?
• Was this done thoughtfully?
• Are our values still real when the decisions are hard?
• Is more coming?
• Am I safe?
• Do I still want to be here?
• Can I trust what I am hearing?

Too often, leaders think of restructuring communication as an announcement challenge. The work becomes focused on getting through “the day”: making sure managers, affected employees and stakeholders have their questions answered.

That work is essential, but the announcement is the starting point for the next phase of trust-building. The people who remain judge the company by what happens in the months that follow the press release.

• Do leaders stay visible?
• Do they understand what changes and what does not?
• Do leaders move too quickly to “business as usual”?
• Is the company making choices consistent with its stated values?

In my experience, one of the biggest mistakes leaders make after a restructuring is post-announcement silence. Employees experience it differently. They fill it with their own stories and assumptions, wondering what leadership is hiding. Sometimes, they speculate on informal channels. 

CCOs can help leaders understand that sometimes the best thing a leader can say is: “Here is what we know. Here is what we do not know yet. Here is what we are working through. Here is what you can expect from us next.” That kind of communication reduces the vacuum where mistrust grows.

The Challenge: The CCO role has changed faster than the function

This moment reveals a broader reality for our profession: the CCO role has elevated faster than many functions have been equipped to handle it. The mandate has expanded into new domains like sustainability, public affairs, AI strategy, employee experience, culture, and reputation risk. 

A restructuring tests whether the organization’s character holds under pressure. For CCOs, the opportunity is to move the organization beyond execution and toward sustained leadership communication.

Smart CCOs help the CEO and executive team see post-restructuring employees as central to success. These employees may be dealing with grief or anxiety. They may also be questioning the psychological contract they thought they had with the organization.

CCOs should help leaders listen for those signals. That requires:

• Manager feedback loops.
• Open forums where employees can ask what is really on their minds.
• Equipping leaders to listen without becoming defensive. 
• Paying attention to voluntary attrition risk, engagement data, and productivity patterns.
• Leaders who recognize that communication after restructuring is about helping employees make meaning of what happened and understand why their work still matters.

A few practical shifts can make a significant difference.

First, treat remaining employees as a primary stakeholder group from the beginning. Build their needs into the strategy before announcement day, not after.

Second, develop a post-announcement communication plan that is as detailed as the announcement plan itself. Map the first day, first week, first month and first quarter. Clarify what employees need to know, feel and do at each stage.

Third, counsel leaders to stay visible. Employees expect leaders to show up, acknowledge reality and keep communicating.

Fourth, equip managers. Managers need context, coaching and permission to have human conversations. A script alone will not carry the moment.

Fifth, define success beyond media coverage or smooth execution. Ask: Do employees understand the rationale? Do they trust leadership’s intent? Do they know what is expected now? Are they willing to stay and contribute discretionary effort? Are managers able to lead through the next phase? Those questions get closer to the real business outcome.

A restructuring may be necessary and strategically sound, but employees will judge it by the leadership they experience. The employees who stay are the real test of a restructuring because they determine whether the organization can actually move forward.

For CCOs, that makes this work central to the modern mandate. We are helping leaders earn the trust required to make change successful. And in a moment when the CCO role continues to expand, this is exactly the kind of enterprise leadership our organizations need from us.

The question I would put to fellow CCOs is this: after a restructuring, how do you define success?

If the answer stops at “the announcement went well,” we are measuring too little. The better measure is whether the people who remain still choose to help build what comes next.

David Grossman is the founder and CEO of The Grossman Group, a leadership and communication consultancy that helps Fortune 500 CCOs modernize communications functions. His new ebook for CCOs and C-suite leaders in the AI-driven economy, What Employees Actually Need from Leaders During Restructuring, is available here.