In today’s volatile job market, many NZ tech employers are navigating restructures or workforce cuts.
After a restructure or staff cut, pressure rises but deadlines don’t disappear, and neither do expectations. However, your people are likely carrying more, with less help. In our recent survey, 69% of NZ tech people said that they are expected to do more with less people – adding an extra layer of stress to an already strained workforce.
It’s a tough balancing act, but it is possible to stabilise delivery, support wellbeing, and keep business momentum, without pushing your team to breaking point.
In this article, we explore practical, people-first actions that can help. Backed by market data, expert insights and lessons we’ve learned on the ground, these steps are designed to help team leaders navigate this challenging time with clarity and care.
Stabilising delivery: quick-win actions that keep projects moving
Re-prioritise scope.
First, get clear on what really matters. Drop or defer lower-value features. Focus on core functionality and user outcomes. Less is more when capacity is tight.
Re-sequence tasks.
Break projects into smaller, sequential phases. Quick releases build momentum and maintain stakeholder confidence. Prioritise work that delivers early value.
Reset timelines.
Reframe deadlines based on current capacity. Overpromising helps no one, transparency is key to resetting expectations with your team, senior management and external stakeholders.
Leverage interim/contract talent if possible.
Contractors can offer critical stopgap support. Employers often increase the use of short-term contract resources post-restructure to bridge essential talent gaps.
“From talking to our clients, the consensus is that it’s very hard to push ahead and deliver at the same pace when your team has been halved – these are human beings (often superhuman beings!), and employers must be mindful to avoid burnout. Best advice is to be realistic, re-prioritise ruthlessly, and communicate clearly. If contractor support isn’t in the budget, then tighten the focus. Momentum comes from small wins, not trying to do it all,” says Mark Warren, Auckland Delivery Manager and Director.
Managing stress and wellbeing: preventing burnout before it bites
Workload triage.
Leaders must actively triage workloads – cut non-essential meetings, pause low-priority work, and give teams space to breathe. Avoid assuming fewer people can do the same amount of work.
Meeting hygiene.
Time is precious. Review meeting cadences, cut standing meetings that don’t serve a purpose, and guard focus time.
90-day focus plans.
Short-term planning reduces being overwhelmed. Create 90-day roadmaps with achievable goals, visible progress, and regular retrospectives. Keep energy focused.
Psychological safety matters.
People perform best when they feel safe. Be transparent. Welcome hard conversations. Listen. According to the 2024 Wellness at Work Report from Employment Hero, financial stress and overwhelming workload is leading to a stressed out Kiwi workforce, with 61% signalling that burnout is affecting them.
Pastoral Care for “Survivors”: Don’t Neglect the Team That Stays
Layoffs impact more than those who leave. Those who remain often grapple with survivor’s guilt, fear of further cuts, or a sense of being undervalued. Ignore this at your peril.
Coaching and check-ins.
One-on-one coaching or mentoring, especially with external partners, helps individuals regain clarity, confidence and focus. Check-ins should be frequent, low-pressure, and human.
Celebrate small wins.
Delivery milestones, bug-fixes, successful stand-ups – recognise progress, however small. Positive reinforcement builds morale.
“After a restructure, stress levels spike, even among those who stay. I think it is fair to say that we can’t assume that those who are silent are necessarily coping. Having space for honest conversations may help teams focus on what they can control and will make wellbeing a shared priority. It is such a challenging time so while many may be grateful to be employed, it can be hard to stay engaged.” says Amanda Halka, Wellington Delivery Manager, Younity.
Self-care vs productivity: culture starts at the top
Model sustainable habits.
If leaders respond to cuts by working longer hours, skipping breaks, and emailing late at night, teams will follow. That’s not resilience, it’s a recipe for burnout.
Normalise boundaries.
Log off on time. Take breaks. Book proper leave. Talk openly about wellbeing without sugar-coating it. The culture you model is the one your team will mirror.
Bake it in.
Make wellbeing part of performance conversations. Include sustainable delivery in sprint planning. Reward smart pacing, not just heroic overwork.
“Research shows that people who are overloaded with work are more than twice as likely to burn out, so yeah – this can have a massive impact” says Mark. “We talk about wellbeing, but this is a time where we really have to live it. As leaders, we need to set the pace. If we want sustainable delivery, it starts with how we show up ourselves.”
Final thought: stay grounded, stay connected
Restructures are never easy. They create stress, uncertainty, and emotional weight for everyone involved.
“Feedback from the market tells us that that how you lead through these difficult times defines the culture that follows. Sustainable delivery isn’t just about scope or timelines, it’s about people, trust, and clarity,” concludes Amanda. “In the end, I don’t think it’s the big wins that build strong teams – it’s the consistency, the conversations, and how you show up when things get hard.”