[Joon-Ki Han’s HR Insights]
Restructuring: Myths, Realities, and the Mindset We Need

When people hear the word “restructuring,” they often feel fear. It is viewed as an arbitrary act, influenced by emotions or politics rather than organizational logic. But as someone who has worked in HR leadership across global corporations, I want to stress this: restructuring, when done properly, is not about favoritism or impulse. It is about ensuring the survival and health of the organization.

 

Why Restructuring Is Necessary

Organizations exist to grow, and growth sometimes requires letting go. This is never an easy process, but it is an essential one. In my experience, three principles guide a fair restructuring decision:

  • Performance: Has the individual consistently contributed to the company’s goals over the past one to three years?

  • Growth Potential: Does the individual have the capability to contribute meaningfully in the future?

  • Cultural Fit: Does the individual strengthen team dynamics, trust, and ethical standards?

Restructuring is not a punishment. It is a strategic step to align talent with the future direction of the company.

 

Misunderstandings to Clarify

I often hear two common misunderstandings:

  • “It’s Political.” Employees may believe decisions are driven by favoritism or internal factions. From management’s perspective, however, the focus is on building the best possible team for future growth.

  • “It’s Only About Past Results.” While past performance matters, potential and cultural contribution are equally critical. Companies must think about tomorrow, not just yesterday.

I understand why employees may perceive restructuring as political. The gap in perception is real. That is why management must communicate with greater transparency, and employees must be willing to consider the broader context.

 

The Employee’s Perspective: How to Respond

Restructuring can be shocking. But my advice is this: rather than focusing energy on resisting the decision, prepare for the next stage.

  • Use available support—severance packages, outplacement, or retraining.

  • Reflect on your career path and set concrete plans for the future.

  • Ensure that your work consistently aligns with the company’s direction and values.

Restructuring should not be seen as the end of a journey, but as the beginning of a new one.

 

Moving Forward: A Culture of Dialogue

In today’s world, restructuring is no longer an exceptional event. It is a reality of business. What matters is how we approach it—calmly, rationally, and with a willingness to grow.

For companies, that means fairness and transparency. For employees, it means resilience and preparation. For society, it means building a culture where restructuring is discussed openly and empathetically, without stigma.

That, I believe, is the path toward healthier organizations and more sustainable careers.

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