A High-Level Guide to Workforce Reductions

At Glacier Point Advisory, we treat workforce reductions as structured change programs rather than isolated HR events. This article walks through each phase at a high level, outlining how organizations can align headcount with strategy for the best outcomes possible for the organization, impacted headcount, and retained employees.

1. Strategic Workforce & Scenario Planning

2. Headcount Targets, Role Selection & Risk Review

3. Leadership Alignment & Governance

4. Communication & Change Narrative

5. Day-of Reduction Execution

6. Post-Reduction Stabilization & Renewal

Phase 1: Strategic Workforce & Scenario Planning

Every effective reduction starts with strategy, not spreadsheets.

Before discussing specific roles or individuals, leadership must be clear on where the business is headed and what kind of workforce that future requires. This means stepping back from short-term cost pressure and anchoring decisions in the long-term operating model.

In practice, this first phase focuses on three questions:

• What is our strategic direction over the next 12–24 months? Leadership clarifies which products, services, markets, and customer segments are truly core—and which are no longer central to the strategy.

• How should our organization be structured to support that strategy? Functions and teams are assessed as core, enabling, or non-core. This produces a directional view of where capacity must be preserved, where it may be reduced, and where work may need to shift.

• What are the financial and headcount implications? High-level scenarios are developed for cost and headcount adjustments that would align the workforce with the future-state plan.

  
  

The outcome of Phase 1 is a clear “future state” view to act as a strategic and financial frame that will guide all subsequent headcount decisions.

Phase 2: Headcount Targets, Role Selection & Risk Review

Once the future state is defined, organizations can translate that strategy into specific headcount and role decisions. This phase is where headcount identification and role selection are handled in a structured, objective way.

First, headcount and cost targets are allocated by business unit, function, or geography, based on the strategic priorities identified in Phase 1. This avoids purely percentage-based or politically driven cuts and ensures reductions reflect actual business needs.

Next, leadership and HR map roles to future needs. Teams and positions are evaluated against the future operating model, distinguishing between:

• Roles that are essential to core strategy and must be preserved

• Roles that are duplicative, lower impact, or no longer aligned

• Roles that may be consolidated, redesigned, or relocated

  
  

From there, the organization defines objective selection criteria, for example: critical skills, role redundancy, performance history, and alignment with future capabilities. These criteria are documented and applied consistently to guide headcount and role selection decisions.

With draft selections identified, HR and legal conduct a formal risk review, evaluating:

• Compliance with applicable laws and regulations (e.g., WARN and mini-WARN where relevant)

• Potential adverse or disproportionate impact on protected groups

• Contractual and union considerations

• Any operational risks related to loss of key skills or roles

  
  

The outcome of Phase 2 is a vetted set of impacted roles and headcount that meets financial objectives, preserves critical capabilities, and minimizes legal and fairness risks.

Phase 3: Leadership Alignment & Governance

With proposed headcount decisions in place, the next step is to align leadership and establish clear governance before any communication begins.

In this phase, executives first align on the case for change. They build a shared understanding of why the reduction is necessary, what it is intended to achieve, and how success will be measured. Misalignment at this stage quickly translates into inconsistent messages and uncertainty inside the organization.

Organizations then define governance and decision rights:

• Who has authority to approve final headcount decisions

• How exceptions and edge cases will be handled

• What escalation paths exist for disputes or new information

• How confidentiality will be maintained during planning

  
  

Managers are also prepared for their role in the process. They receive guidance on explaining the business context, responding to employee concerns, and supporting both departing and remaining team members. The goal is not to script every word, but to ensure managers have a clear framework and support.

The outcome of Phase 3 is a leadership group that is aligned, accountable, and ready to lead through a difficult change with consistency and control.

Phase 4: Communication & Change Narrative

Only after decisions and governance are clarified should organizations finalize communication plans.

Effective communication during a reduction hinges on a clear, human, and coherent narrative. Employees, investors, and other stakeholders may not agree with every decision, but they should understand why the decisions were made and how they will be implemented.

This phase typically involves four components:

1. Core Narrative Development A concise explanation of what is happening, why it is happening, and how it positions the organization for the future. The emphasis is on plain language and respect.

   
   

2. Audience-Specific Messaging Tailored communication is drafted for different stakeholder groups:

   • All employees

   • Managers and people leaders

   • Impacted employees (notification language and supporting materials)

   • External stakeholders (where necessary, such as investors, partners, or media)

     
     

3. Supporting Materials Leadership announcements, manager talking points, and employee FAQs are prepared to provide consistent answers to predictable questions around timing, severance, benefits, and next steps.

   
   

4. Legal and Policy Review All messaging is reviewed to ensure accuracy, alignment with employment policies, and consistency with legal advice, while avoiding over-promising or ambiguous commitments.

   
   

The outcome of Phase 4 is a communication plan that supports a controlled rollout and helps preserve trust, even in the context of difficult news.

Phase 5: Day-of Reduction Execution

The day of the reduction is where careful planning is tested.

A disciplined execution plan outlines timing, sequence, and responsibilities. Organizations define when notification meetings will occur, when system access changes will be implemented, and when broader communications will be delivered to the organization.

Notification meetings are conducted privately and respectfully, typically led by the direct manager with HR support. Conversations are straightforward but empathetic, clearly outlining the decision, the effective dates, and the high-level terms of severance and benefits where applicable.

Throughout the day, the organization follows consistent protocols across locations and functions to minimize perceived inequities and confusion. Logistical elements such as returning equipment, accessing systems, or collecting personal belongings are managed in a way that preserves dignity.

The outcome of Phase 5 is a reduction delivered with calm, control, and respect, rather than surprise, confusion, or chaos.

Phase 6: Post-Reduction Stabilization & Renewal

Once notifications are complete, the focus must shift to stabilizing the organization and enabling the remaining workforce to move forward.

This starts with clear, honest communication to remaining employees. Leaders reiterate the rationale, clarify what has changed, and explain how the new structure supports the company’s future. This helps employees make sense of the change rather than filling in the gaps with assumptions.

Organizations then reset priorities and workloads to reflect new capacity. This often includes eliminating low-value work, focusing on essential initiatives, and adjusting goals to be realistic under the new structure.

Equally important is supporting the emotional impact. Employees may experience uncertainty, frustration, or “survivor’s guilt.” Leadership and HR can normalize these reactions, point to available resources (such as HR and employee assistance programs), and encourage managers to check in regularly.

Over time, leadership must deliberately rebuild trust and engagement, recognizing contributions, highlighting signs of progress, and creating channels for feedback so employees feel seen and heard.

The outcome of Phase 6 is an organization that is not just smaller, but more focused, aligned, and prepared to execute its strategy.

How Glacier Point Advisory Supports Workforce Reductions

Workforce reductions demand more than ad hoc meetings and a few difficult conversations. They require a structured, objective, and humane approach that balances financial discipline with legal, cultural, and operational realities.

Glacier Point Advisory partners with organizations to:

• Align reductions with long-term business strategy and operating models

• Design objective headcount identification and role selection processes

• Conduct structured risk reviews to minimize legal and fairness concerns

• Align executives and managers around a clear, coherent plan

• Develop disciplined communication strategies for internal and external stakeholders

• Execute reduction days in a controlled, respectful manner

• Stabilize the organization post-reduction and help retain key talent

  
  

When done well, a workforce reduction can be a difficult but necessary step toward a more resilient, future-ready organization rather than a source of lingering risk and cultural damage.

This article is for general informational purposes only and does not constitute legal advice. Organizations should consult qualified legal counsel regarding their specific obligations, risks, and jurisdictional requirements.