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October 10, 2025
Key Takeaways
Redundancy is a stressful transition—but by understanding your rights, managing finances, maintaining your mindset, and taking strategic steps, you can emerge stronger and ready for new opportunities.
Facing redundancy can be an overwhelming and stressful experience, especially if you’ve never been through it before. In this comprehensive guide, we’re looking at the steps following redundancy and how you can navigate this turbulent time.
The redundancy process may differ based on the employer and sector. It usually starts with a discussion period. During this time, the employer will explain the circumstances and examine different possibilities.
Understand your rights during this process. Know your notice period. Seek professional advice if you feel you are being treated unfairly.
The redundancy process is not simple. It can trigger a variety of emotions, like uncertainty, fear, anger, and even shame. All of these feelings can be overwhelming.
It is important to maintain a positive attitude. Redundancy does not define your worth or career path.
There is still a range of opportunities out there waiting for you. We will provide you with some practical advice on how to navigate redundancy and move forward toward a brighter future.
Unfortunately, redundancies are on the rise. Recent figures from the Office for National Statistics tell us that the current ILO redundancy rate is 3.6 per 1000 employees.
In Q1 of 2025, one in four employers was planning redundancies for Q2. This is the highest level in a decade, outside of the pandemic. According to an ACAS report published at the start of 2023, 40% of large employers and 20% of small to medium employers were planning redundancies for the following 12 months.
These predictions were backed up in recent employment futures, as the number of payrolled employees fell 0.5% between June 2024 and June 2025.
Uncertain global markets coupled with a surge in AI technology has led to a perfect storm that means that redundancies are set to become more common. With this in mind, it makes sense to be financially and emotionally prepared for what this might mean for you.
Redundancy doesn’t have to be the end of the road for your career. Many people bounce back quickly, others might take some time to think about their options, and others will use the opportunity to retrain. Having the right attitude and a little bit of preparation can help you to weather this particular storm.
The redundancy process can vary depending on your employer and industry. Generally, it will begin with a consultation period where your employer will explain the situation and explore options. During this time, they may also offer you a range of support services such as training or career counseling.
Before compulsory redundancies, it’s common for companies to offer a first round of voluntary redundancy. This will generally include a generous lump sum payment that might be linked to your years of service. It’s important to consider your options during this time, as this lump sum payment could give you the freedom to explore new career options.
Remember that you won’t be eligible for redundancy pay if your employer has offered you a suitable alternative job that you turn down. If you feel that the alternative job is unsuitable, it will be down to you to demonstrate why this is the case.
If you choose to stay put, the process will move forward. The company will now have a clearer idea of which employees are left behind. If your role happens to be one that is no longer required, you may be let go anyway.
If your role is made redundant, you will typically receive a lump sum redundancy payment. This is often based on your length of service and may include statutory redundancy.
It’s important to understand your legal rights during this process and seek professional advice if you feel you are being unfairly treated. If you feel that you have been unfairly singled out for redundancy based on things like your age or your gender, then you may have the opportunity to seek unfair dismissal.
When you learn that you are being made redundant because the company you work for is closing down or reducing operations, this can be much easier to handle. It becomes about their failure, rather than feeling like you have somehow come up short. But when you are made redundant and the company is still going, it can feel like you’re being told you aren’t good enough.
Sometimes redundancies can happen as part of a company restructure, where a company is changing direction, merging with another company, or downsizing. This can be a difficult time for everyone involved, and it’s important to keep a level head and stay positive during the process. If you’re unsure about what the company restructuring means for your job, ask for clarification from your employer.
Perhaps the company is changing its focus and your skillset is no longer relevant to the direction they would like to go in. It would be worth speaking to your line manager about what skills you might be missing and exploring options for you to close these gaps. Perhaps AI is becoming more prominent in your workplace, in which case you might explore training options to become one of the people managing and overseeing the implementation of AI.
One of the biggest concerns for those facing redundancy is financial difficulties. It’s important to take stock of your finances and create a budget that can help you manage your expenses until you secure a new job.
Since you don’t know how long it will be before you have a new job, it might be a good time to cut back on your expenses. This will allow you to stretch your budget a little further.
Your lump sum redundancy payment could be more generous than the statutory minimum. You should be able to calculate how much you will be offered as a minimum, as it is based on your age and how long you have been with the company.
You can then look at your monthly expenses to see how long your budget will last. This will give you an idea of the amount of breathing room you have and might give you a deadline for when you need to make key decisions.
It’s common to give yourself a deadline for how long you can explore the ideal outcome, and if this doesn’t result in employment, then you might need to consider broadening your search.
It can feel like a lonely time, but help is available. Look into government support options that might be available to you, such as Universal Credit or Jobseeker’s Allowance. Don’t assume that you won’t be eligible.
The Citizens Advice Bureau can provide free and impartial advice on a range of financial matters, including debt management and benefits. You should also explore insurance options, as you may have taken out cover that will protect you in this instance. Some home insurance plans will include protection in the face of redundancy.
You can also speak to your bank and utility companies to give yourself some breathing room while you figure out your next steps. This could mean a mortgage payment holiday to help reduce your outgoings. Being proactive in the wake of a redundancy will help you to stay on top of your financial obligations.
If you have a partner, consider discussing your finances together and creating a joint plan. Don’t bury your head in the sand when it comes to your finances. Getting ahead of any potential issues could help to alleviate some of the stress and anxiety associated with redundancy.
One of the biggest worries post-redundancy is finding a new job. It’s important to stay positive and remember that redundancy is a common experience that many people go through.
Some people will take redundancy as a knock to their confidence, as they assume that they were let go because their role wasn’t valuable enough for the company to keep. This isn’t the case, and the majority of redundancies will happen due to financial pressures. The arrival of AI is also changing the structure of the workforce, and many employers will use this as an opportunity to cut costs.
It can be hard to enter into the job search process with enthusiasm when you are feeling anything but optimistic. But it’s important to take meaningful action towards finding a new job.
This may mean taking online courses or seeking career counseling to develop new skills, researching prospective employers and their company culture, and networking with people in your industry.
Redundancy ≠ End
Though unsettling, redundancy can catalyse change—inviting you to re-evaluate your path, develop new skills, and pursue work that better aligns with your goals.
Strategic Next Steps
Actively manage the process: assess finances, network, upskill, and approach job seeking with structure—this ensures redundancy becomes a turning point, not a setback.
Facing redundancy can feel like a huge setback, but it’s important to maintain a positive mindset and stay open to new opportunities. This can mean exploring different career directions, industries or even starting your own business.
Redundancy can also be a chance to re-evaluate your career goals and determine what you really want to do. Use this time to reflect on your strengths and passions, and research job opportunities that align with your interests and skills.
You could use this time to go back to university and gain new skills, or to take a completely different direction in your career. You could even take on an apprenticeship to learn new skills. Don’t assume that these opportunities are only available to school leavers, as many employers would be happy to take on someone with a wealth of experience.
The job market can be competitive, but there are still opportunities out there waiting for you. Stay positive and open to new possibilities.
Consider exploring different career paths, industries, or even online courses to enhance your skills. Research prospective employers and company culture to find the right fit for you. Remember, redundancy can also be a chance to re-evaluate your career path and determine what you really want to do.
When it comes to job hunting, there are a few things to keep in mind. First, create a strong CV and cover letter that highlights your experience and skills.
Consider reaching out to recruiters or networking with people in your industry. LinkedIn can be a useful tool for connecting with potential employers and staying up-to-date on industry news. Remember that job hunting can take time, so try to stay patient and persistent in your efforts.
After being made redundant, it’s natural to have a range of emotions toward your previous employer. However, it’s important to remain professional and avoid burning bridges.
You never know when you might need a reference or a professional connection in the future. Don’t be afraid to be honest about the redundancy process in future job interviews. You don’t have to hide this fact, and many employers will be more than familiar with this process.
If you feel that you have been treated unfairly during the redundancy process, seek legal advice on whether you have a case for unfair dismissal.
Redundancy is a difficult and often emotional experience, but it’s important to stay positive and proactive in your approach. Understand your rights during the redundancy process, manage your finances, and stay open to new opportunities. Remember, redundancy does not define your worth or your career development. By keeping a positive mindset and taking practical steps towards your goals, you can move forward towards a brighter future.
It is normal to feel a variety of emotions. Keeping a positive attitude can help you get through this difficult period. It can also open up new possibilities that you might not have considered before. Remember to seek support from your network and take advantage of any career guidance offered during the consultation period.
At CMD Recruitment, we understand the challenges of facing redundancy and the impact it can have on your career path. That’s why we’ve created a downloadable guide to navigating redundancy.
Download our navigating redundancy guide today and take the first step towards a positive future.
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