How Strong Leaders Lead Through Restructuring and Downsizing
By Jennifer Eggers, Andersen Alumnus and Founder & President of LeaderShift Insights®
If it feels like the waters have gotten rougher lately, you’re not alone.
Across industries, executive teams are navigating waves of uncertainty. Budgets are tightening. Teams are shrinking. Leaders are being asked to do more with less, move faster with fewer resources, and maintain morale amidst layoffs and restructuring. It’s no wonder many find themselves exhausted, frustrated, and wondering if growth is even possible in this climate.
Here’s the truth: It is possible. But it doesn’t happen by default.
Growth in turbulent times requires a new kind of leadership. One that’s adaptive, strategic, and able to align people even when the path forward feels unclear.
This is what I call leading in choppy waters.
And if you’re a senior leader right now – especially one navigating restructuring or downsizing – your ability to drive clarity and engagement in uncertainty may be the single most important skill you can cultivate.
Let’s talk about what that really means.
What Leaders Get Wrong in a Restructure
When companies restructure, the focus often goes to operational design – a headcount, reporting lines, org charts. And while those are critical levers, they’re not what gets teams rowing in the same direction.
Leaders often forget that restructuring doesn’t just change roles, it changes how people see their future, how they work together, and what they believe is possible.
Here’s what I’ve seen repeatedly in restructuring environments:
- Silos deepen as people become more protective of turf
- “Survivor syndrome” sets in as remaining employees experience guilt, fear, and distrust
- Strategic priorities get diluted as leaders focus on maintaining status quo
- Middle managers are left holding the change without tools to lead through it
In other words, organizations lose alignment just when they need it most.
The Misstep You Might Not See
If you’re reading this, there’s a good chance you already feel it. Your team may be showing up, but they’re cautious. They’re checking boxes. They’re not taking the kind of ownership that drives innovation or growth.
You might think: “I’ve explained the strategy.”
But communication alone isn’t leadership. And clarity doesn’t automatically create commitment.
That’s where most leaders get stuck: they think they have an execution problem when they actually have an alignment problem.
And that’s not on your team. It’s on how you lead through turbulence.
So the question becomes: Are you doing the right things to lead your team in rough waters?
Resilience Is a Team Sport
The leaders who drive results during restructuring aren’t the loudest or most charismatic. They’re the ones who ask the right questions:
- What am I doing to signal direction when plans change by the day?
- Am I surfacing ideas and innovation, or shutting them down by accident?
- Are my people clear not only on the what, but on the why?
- Am I creating space for all hands on deck, or trying to carry it all myself?
These leaders don’t just tell people to “lean in.” They build systems of engagement that empower their teams to act.
They lead with clarity, not control. They foster collaboration, not compliance.
They remove friction so progress can happen – even when the environment is challenging.
They know that resilience isn’t about bouncing back. It’s about adapting forward, together.
Your team is watching. They’re waiting. They want to contribute.
The question is: will you lead them in a way that lets them?
To traction, not turmoil,
Jennifer
Jennifer Eggers is a C-Level advisor and President of LeaderShift Insights, Inc. She works with leaders and organizations going through disruption to improve their capacity to adapt. This is an excerpt from Jennifer’s new book, coming this summer from Best Seller Publishing. The working title is “Mastering The C-Suite Mindset: A playbook for transitioning into the C-Suite”. The book is based on 30 years of patterns observed while working with and coaching C-Suite leaders across 16 countries and over 25% of the Fortune 500.