The recent surge in creditor protection filings signals a shift in the economic cycle, driven by tightening credit conditions, persistent inflation, and ongoing market adjustments following tariff threats and trade disruptions.
Amid this economic transition, one critical element is often overlooked: communication.
Effective communication during times of change is not simply about issuing updates; it’s about managing uncertainty, fostering understanding, and maintaining trust. As corporate communications professionals, we see firsthand that the success of a restructuring initiative hinges on leadership’s ability to clearly convey both the rationale and the path forward.
Restructuring is strategic, not merely about survival
In today’s economic landscape, Canadian companies grappling with rising costs and a shifting competitive landscape must quickly realign structures, reprioritize talent, and adjust investments to remain competitive and viable.
However, stakeholders—employees, investors, and the broader public—judge organizations not solely by the outcomes of restructuring, but also by how these are achieved. In an era of heightened transparency and values-driven leadership, silence or reliance on empty corporate jargon only fuels skepticism and anxiety.
Human-centred communication is essential for effective change management
Restructuring is arguably the most visible form of change management. It directly affects jobs, reshapes company culture, and can significantly influence employee morale, often triggering significant uncertainty and apprehension about the future.
For these initiatives to be truly effective, communications must be led from the front. The CEO and other senior leaders should be highly visible, delivering clear, consistent messaging that sets the emotional tone for the organization.
Effective restructuring communication must accomplish three essential tasks:
1. Align clearly with the strategic vision: Stakeholders must understand not only the details of what is changing, but also how those changes serve the company’s long-term objectives. Ambiguity disguised as “efficiencies” is insufficient; clear explanations build confidence and support.
2. Reassure through transparency and empathy: Employees and other stakeholders deserve honesty paired with optimism. Acknowledge uncertainty without exacerbating fears. Be clear about what is known and unknown, and continuously reinforce the company’s core values and purpose.
3. Engage employees through dialogue: Effective communication is never one-way. Employees should feel heard and respected, not merely informed. Creating opportunities for feedback, open dialogue, and mutual support helps sustain morale, preserve trust, and strengthen internal cohesion.
Retaining talent is integral to successful restructuring
Although unemployment is rising in some sectors, assuming that skilled talent is easily replaceable can be a costly mistake. In high-demand industries, competition for top-tier professionals remains intense.
Companies that approach restructuring purely as a numbers game risk undermining morale and losing the individuals essential to future growth. To avoid this, effective leaders go beyond announcing departures—they clearly communicate who is staying, why they matter, and how they contribute to the organization’s strategic direction. By presenting a compelling vision for the future, supported by concrete plans for talent development and investment in culture, they send a strong message of stability, purpose, and confidence.
Protecting reputation
External stakeholders will be watching closely: Investors will scrutinize restructuring efforts to determine whether they reflect desperation or disciplined, strategic planning. Consumers will look for reassurance of corporate integrity, while media narratives will be shaped by either clarity or confusion.
To build and maintain trust during restructuring, communications must clearly connect decisions to the organization’s broader financial, social, and environmental commitments. Consistent messaging across both internal and external channels reinforces credibility and strengthens stakeholder confidence.
While it may be tempting to move on after the initial announcement, it is equally important to maintain the message momentum in the weeks and months that follow. Ongoing communication provides stakeholders with continued clarity, reassurance, and a sense of direction—ensuring that trust is not only established but preserved throughout the transition.
Companies that proactively shape their narrative emerge stronger and better positioned for future success.
Lead change, don’t just announce it
Restructuring is more than an operational shift; it’s a defining moment for leadership. Success depends on strategic alignment, emotionally intelligent communication, and a clear, empathetic narrative.
Communicators must be involved from the outset—not just to craft messages, but to shape stakeholder experiences. In times of uncertainty, people seek more than just information; they need reassurance that the future is promising. Providing that reassurance requires authentic, human-centred leadership.
Need more personalized advice? Contact our Capital Markets and Corporate Communications teams.
