As we look ahead to 2026, it seems inevitable that redundancies, driven by AI and automation, will become increasingly common.
But how should managers respond when faced with critical choices about how they’ll support their teams?
As a manager, you may feel powerless to prevent the decisions being made at the organisational level. You can, however, fundamentally shape whether people leave with clear understanding of their transferable capabilities and concrete next steps, or whether they’re simply processed through redundancy procedures and left to work things out alone.
You can choose to provide guidance about emerging opportunities that help people build on what they already know how to do. Here’s how:
- Start conversations and development initiatives well before redundancy announcements. Waiting until decisions are made means people have less time to build new skills and explore alternatives whilst still employed. Early action gives your team members the best chance of successful transitions.
- Be honest when change is likely to lead to redundancies. Telling people that AI will only enhance their jobs sounds comforting, but it is often untrue. Drop the reassuring platitudes about job security or generic encouragement to “keep learning”. Instead, provide your realistic assessment of where the organisation is heading, acknowledge what remains uncertain and be specific about where you’d focus development if you were in their position. Explain why their particular background might matter in emerging roles and which opportunities you genuinely see taking shape.
- Justify investment in your people using business evidence. Developing someone who already understands your operations, customer base and organisational culture delivers better value than redundancy costs plus external recruitment. Given the scarcity of people with AI-related skills, growing talent internally is a sensible investment and sound business decision.
- Allocate budget and time for training. This means approving course fees, conference attendance and dedicating work hours to learning rather than expecting people to upskill in evenings and weekends on top of full workloads. Make the investment real, not rhetorical.
- Provide opportunities for people to get hands-on with a range of AI tools. This could range from the basics of prompting Large Language Models to working on simple workflow automations, for example using Microsoft Power Automate. Encourage them to gain practical experience and qualifications to boost their CV.
- Help people translate their experience into language that resonates with new roles. Someone in customer service has skills in managing complex interactions and de-escalation that matter for many AI-related roles, but they may not see the connection without your help. Be specific about how their capabilities transfer.
- Make visible recognition part of the process. Acknowledge completed training in team discussions, draw attention to valuable contributions when someone identifies potential system issues and ensure people understand potential career progression. Professional identity matters deeply during transitions, and uncertainty about where effort leads is why many people give up midway through reskilling.
- When redundancies are announced, engage properly with your affected team members. Help them identify their genuine strengths, explain how their experience might transfer to roles outside their current field, facilitate introductions through your professional network and be truthful about circumstances. Remember that the remaining staff will observe how departing colleagues are treated.
- Acknowledge the impact on those who remain after redundancies. Resist the urge to reframe job losses as opportunities for remaining team members. Allow space for people to process what’s happened, then engage in straightforward conversations about what’s ahead and how you can prepare collectively for continuing changes.
The reality is that AI-driven redundancies will accelerate across many sectors. As a manager, you cannot reverse these decisions, but you can ensure that people affected don’t simply disappear from your concern once notices are issued.
By providing honest guidance, practical support and continuing advocacy for your team members, you demonstrate the kind of leadership that matters most during difficult transitions. Corporations may act without sentiment, but managers can choose to lead with both competence and compassion.
