In times of growth, it’s easy to talk about diversity and inclusion. Statements are made, targets are set, and new hires bring fresh energy. But when the economy tightens and businesses begin to restructure, that commitment is put to the test. The question becomes not what you say about inclusion—but what you do when the stakes are high.
The UK is currently experiencing a rise in redundancies. Data from the Office for National Statistics (ONS) shows that in the final quarter of 2024, redundancy rates increased to 4.3 per 1,000 employees—up from 3.2 the previous year. And while restructuring may be necessary, it poses a significant risk to equity if not done carefully.
Inclusion Requires Action in Difficult Moments
Redundancy decisions are rarely easy. But without an inclusive lens, they risk becoming regressive. Too often, marginalised employees—particularly women, ethnic minority staff, disabled workers, and LGBTQ+ employees—are disproportionately affected. Not because of performance, but due to being underrepresented in leadership, working in part-time or less protected roles, or not having visibility when decisions are made.
A 2023 report by Business in the Community found that Black and minority ethnic employees were more likely to report being made redundant or laid off during organisational changes, with only 38% believing the process was fair. Meanwhile, disabled employees were 25% more likely to feel excluded from decision-making.
Inclusive organisations understand that equity doesn’t happen by chance. It is something that must be protected and embedded—even in cost-cutting conversations. That means actively analysing the impact of restructuring decisions on workforce diversity. It means ensuring representation in the room when decisions are made. And it means communicating clearly and empathetically throughout the process.
Risk of Losing Hard-Won Progress
For many companies, the last five years have seen significant strides in diversity and inclusion. Ethnicity pay gap reporting, gender-balanced boards, and LGBTQ+ network groups have all contributed to more equitable workplaces. But that progress is fragile.
When redundancies aren’t managed with inclusion in mind, the result can be a rollback. Representation declines. Morale dips. Trust erodes. And talent—especially diverse talent—starts looking elsewhere.
According to a 2024 CIPD survey, 64% of employees said they would be less likely to recommend their employer if they perceived layoffs to disproportionately impact minority colleagues.
Beyond the reputational cost, there’s also the legal risk. Discriminatory redundancy procedures can open organisations up to tribunal claims. A study from the Equality and Human Rights Commission noted a 12% rise in complaints related to discriminatory job losses during the last major wave of public sector cuts.
But this doesn’t have to be the story. Redundancy and inclusion are not mutually exclusive. With the right approach, organisations can restructure while maintaining fairness, transparency, and trust.
Inclusive Restructuring: What Works
What does inclusive restructuring look like in practice? It starts with data. Conducting equality impact assessments is essential to understand who is affected and why. This should include intersectional analysis—looking at the combined impact of race, gender, disability, and other protected characteristics.
Second, involve diverse voices in planning. Inclusion isn’t just a metric—it’s about perspective. If decision-makers don’t reflect the makeup of your workforce, seek input from employee networks, HR diversity leads, or external advisors.
Third, be transparent. Explain the rationale behind decisions. Offer support to those affected. Communicate not just what’s changing, but what your values are through that change.
Research from the Chartered Management Institute shows that employees are 45% more likely to remain engaged through restructuring when leaders communicate clearly and acknowledge inclusion.
Finally, plan for recovery. If inclusion took a hit, rebuild it. Use rehiring opportunities to prioritise diversity. Invest in culture, mentorship, and career development to ensure equity isn’t an afterthought—it’s the foundation.
The reality is, economic turbulence is cyclical. But your commitment to inclusion shouldn’t be. Because how an organisation acts in a crisis says more about its values than any policy ever could.
Inclusion isn’t seasonal. It’s not something we do when it’s easy. It’s what we protect when it’s hard.