Career Change After Redundancy: How to Turn a Setback Into Your Best Career Move
⏱ Reading time: 5 minutes
Hello Reader, Welcome to On HR's Radar, my weekly newsletter where I give actionable job search, Career & leadership insights from my experience as Career Coach & founder of Executive Search business Perennial HR
If you're looking for my Cheat Sheet PDFs, the link is at the bottom of this email!
Career Change After Redundancy: How to Turn a Setback Into Your Best Career Move
Reading time: 5 minutes
🔑 Key Takeaways
- Redundancy can open better opportunities, not just replacements roles
- Your transferable skills are more valuable than you think.
- The first 90 days matter most, use them strategically.
- Clarity beats urgency when planning your next move.
- The right support can accelerate a successful career pivot.
Redundancy Can Become a Career Turning Point
Between 2024 and 2026, global layoffs accelerated across technology, finance, media, and professional services as organisations restructured around cost pressures and AI-driven productivity. In 2025 alone, NetworkWorld report that the tech sector cut more than 244,000 jobs globally, while over 137,000 additional tech layoffs had already been recorded by mid-2026. .
For most professionals, redundancy feels deeply personal at first. Even when expected, the moment it becomes official is difficult.
That reaction is normal.
But after the initial shock, the professionals who recover fastest tend to make one important shift. They stop treating redundancy as something that happened to them and start treating it as an opportunity to reassess their career intentionally.
That shift changes everything.
Research consistently shows that professionals who use redundancy periods strategically often land in roles that are more senior, better compensated, and more aligned with what they actually want.
The difference usually comes down to how they use the first three months.
Why Career Changes After Redundancy Are Increasing
Most people do not return to an identical role after redundancy.
Outplacement data shows only around 21% move into the same role within the same sector. The majority transition into a different function, industry, or both.
This is not just about necessity. It is often about clarity.
For many professionals, redundancy creates the first meaningful pause in years. Without the pressure of constant work, they finally ask questions they have avoided:
- Is this still the industry I want to be in?
- Have I outgrown my current level?
- What kind of work actually energises me?
- What do I want the next decade to look like?
Those questions lead to better decisions.
The stigma around redundancy has also changed dramatically. After widespread layoffs across industries, redundancy is no longer seen as unusual. Hiring managers are far more interested in what candidates did next.
They are asking:
How did you use the time?
The Mistake Most Professionals Make
The biggest mistake after redundancy is moving too quickly.
Many professionals immediately start applying for roles similar to the one they just lost. That instinct is understandable, but it often leads to reactive decisions instead of strategic ones.
Redundancy creates something rare for experienced professionals:
Time to think clearly.
Used well, that pause creates space to evaluate what you genuinely want instead of defaulting to familiar options.
Professionals who take time to reflect before entering the market usually present with:
- More clarity
- Stronger positioning
- Greater confidence
- Better focus
Hiring managers notice the difference.
Why the Current Market Favors Career Changers
While some sectors are shrinking, others are hiring aggressively.
Many growing businesses are no longer looking only for candidates with perfectly matched industry backgrounds. They want experienced professionals who bring:
- Strong judgment
- Commercial awareness
- Leadership capability
- Adaptability
- Stakeholder management skills
That is why scale-ups are hiring corporate talent, consulting firms are recruiting industry practitioners, and smaller businesses are actively seeking leaders from larger organisations.
The issue is that many professionals underestimate how transferable their experience really is.
Your Transferable Skills Matter More Than You Think
The skills that feel routine in your current environment often look highly valuable elsewhere.
If you have spent years:
- Managing stakeholders
- Leading teams
- Delivering under pressure
- Building client relationships
- Driving commercial outcomes
- Navigating change
then you already possess capabilities that many organisations struggle to find.
These are not industry-specific skills. They travel well across sectors.
The challenge is not usually learning entirely new skills. It is learning how to position the skills you already have in language that resonates with a new audience.
That is a positioning problem, not a capability problem.
The 90-Day Plan After Redundancy
Month One: Pause, Reflect, Prepare
Do not rush into applications immediately.
Use the first month to create clarity.
Focus on:
- Understanding your severance, references, and financial position
- Defining what you actually want next
- Updating your CV and LinkedIn with a stronger career narrative
- Reconnecting with trusted people in your network
- Exploring industries and opportunities beyond your current lane
The goal is not speed. It is direction.
Month Two: Get the Right Support
This is where many professionals make costly mistakes.
If you are pursuing a similar role in the same industry, a specialist recruiter can be extremely valuable. They already have relationships and access to relevant hiring managers.
But if you are making a genuine career pivot, recruiters are often less effective.
Recruiters are hired to place proven matches. If you are moving into a new area without direct experience, many recruiters will struggle to position you confidently.
This is where a career transition coach becomes valuable.
A strong transition coach can help you:
- Reframe your experience
- Position transferable skills effectively
- Build a compelling career narrative
- Prepare for interviews in a new sector
- Navigate unfamiliar hiring dynamics
The key is choosing someone with experience helping professionals make the kind of move you want to make.
A Critical Point About Outplacement Support
Many employers offer outplacement services during redundancy. These can be useful, but the assigned coach is not always the right fit.
Before accepting the default arrangement, ask whether you can redirect the budget toward a coach or provider you choose yourself.
The quality and relevance of the coach matters far more than the brand name of the provider.
Month Three: Focus and Accelerate
By month three, patterns should start becoming clear.
You should know:
- Which conversations are progressing
- Which industries are responding positively
- Where your positioning is strongest
- Which opportunities are worth pursuing
This is the time to become disciplined.
Stop scattering applications broadly. Double down on the opportunities gaining traction and prepare thoroughly for every interview.
The strongest outcomes usually come from focused effort, not volume.
How to Explain Redundancy in Interviews
Most professionals overcomplicate this conversation.
The best framing is simple, confident, and forward-looking.
Instead of saying:
"I was made redundant and decided to try something different."
Say:
"The redundancy created an opportunity to make a deliberate career move I had already been considering, and this role aligns strongly with the direction I want to build toward."
That framing communicates intentionality, clarity, and confidence.
The Mindset Shift That Changes Outcomes
The professionals who struggle most after redundancy often view it as a personal failure.
It is not.
Redundancy is usually driven by restructuring, strategy shifts, cost pressure, or technology change. It is rarely a reflection of individual capability.
The professionals who recover strongest are the ones who decide:
This is an opportunity to choose my next move intentionally.
That mindset creates momentum.
Conclusion
A career change after redundancy is not a fallback option. For many professionals, it becomes the catalyst for a far better career path.
The current market continues to reward experienced professionals who bring adaptable skills, commercial judgment, and leadership capability into evolving industries.
The key is using the transition period intentionally.
Get clear on what you want. Position your transferable skills effectively. Seek the right support. Stay focused during the first 90 days.
The professionals who do that consistently land in stronger roles than the ones they left behind.
Not despite the redundancy, but because of how they responded to it.
If you’re looking to improve your overall job search strategy, you might also find these useful: How to Optimize Your LinkedIn Profile to Attract More Recruiters and Land More Interviews 12 Interview Culture Questions That Reveal Company Culture, and How to Show AI Skills on Your CV in 2026.
Cheat Sheets
Click on the button below to get access to all our Hi res Cheat Sheets on Career Advice, Hiring Advice, HR Insights and Leadership
|