2023 was a difficult year for the tech industry. According to Layoffs.fyi, a total of 1,184 companies in the tech sector laid off workers throughout the year, affecting nearly 263,000 employees, more than the total layoffs in 2020 and 2021 combined. Economic uncertainty triggered cost cutting measures along with rapid tech change which led to shifts in strategic priorities made the tech industry a highly volatile employer.

And marketing teams were not immune. With reduced advertising budgets and being viewed as a ‘cost centre’ by many at GLT level, it makes them an easy target.

We see this trend continuing into 2024, and whilst it’s never an easy process there are some key considerations and actions marketing leaders can take to consider the needs of those affected and those who remain. As a growth consultancy we are supporting clients through this process and wanted to share our insights on the best way to approach cuts and restructured marketing teams.

Prioritise Skills and Roles for Growth

For the most effective marketing team structure prioritise core skills and roles that are essential for achieving your current and future business strategy. This involves evaluating which positions and functions deliver the most impact, effectively. The aim is to ensure that despite a smaller team, the most critical aspects of marketing that drive business growth and customer engagement are covered. This usually requires a thorough assessment of current marketing strategies, the impact of each role on these strategies, and a realignment of resources to support these vital functions.

The Emotional Impact of Team Cuts

When an organisation decides to downsize, the immediate impact is the quick departure of colleagues. These are not just employees; they are people with whom we have built professional relationships, shared successes and challenges, and in many cases, developed personal bonds. The departure of these individuals can create a void, leading to a sense of loss and grief among the remaining team members. This is often accompanied by survivor’s guilt, a psychological phenomenon where individuals feel guilty for retaining their job while their colleagues are let go.

Moreover, team cuts can lead to an atmosphere of uncertainty and fear. Employees start to question the stability of their own positions and the overall health of the organization. This uncertainty can be paralysing, and affects employee engagement, productivity, and ultimately, the quality of work.

The Need for Clarity and Communication

Clarity and communication from the leadership are paramount. It’s essential for management to be transparent about the reasons behind the team cuts. Whether it’s due to financial constraints, a shift in business strategy, or technological changes, a clear explanation helps employees understand the rationale, even if they don’t fully agree with it.

As much as possible, management needs to communicate what the future holds for the remaining team members. This involves providing a clear understanding of their roles, responsibilities, and the expectations from them in the new marketing team structure. When employees understand where they fit into the larger picture, it can help mitigate feelings of uncertainty and insecurity.

A new marketing team structure: Redefining Roles and Processes

Post team cuts, it’s often necessary to support the remaining team in their redefined roles, tech and processes. The remaining team members might have to take on additional responsibilities or adapt to new ways of working. This transition can be challenging and requires adequate support from the management. Training sessions, workshops, and regular check-ins can help employees adapt to their new roles effectively.

It’s also an opportunity for the organisation to reassess its processes and workflows. Streamlining operations, eliminating redundancies, especially with your tech stack and your 3^rd party agency support will lead to more efficient and effective ways of working.

Supporting Employee Morale

To support morale in the wake of team cuts, it’s crucial to acknowledge the emotional impact on the remaining employees. This might involve holding team-building activities, and creating forums where employees can voice their concerns and feelings.

Looking Forward

While team cuts are never easy, they can be an opportunity for growth and renewal. With clear communication, support for the remaining team members, and a focus on adapting to new challenges, organizations can emerge stronger and more resilient.

The process of making team cuts is fraught with challenges, particularly concerning the impact on employee morale. However, with a strategic approach that emphasises clarity, communication, and support, organisations can navigate these difficult times while maintaining a committed and motivated workforce.

Magnus Consulting is a growth consultancy helping organisations to grow in a way that has a positive impact for all. Specialising in marketing effectiveness, we have a lot of experience in restructuring marketing teams, processes and strategy for cost optimisation. If you need support, please get in touch with Teresa at teresa.allan@magnusconsulting.co.uk