4 ways leaders can guide teams through the acquisition process

Published Updated 2 Min Read

Colleagues shaking hands across the conference room table.
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Acquisitions can spark public excitement as recognizable brands are bought by recognizable companies, shifting the competitive landscape for their particular industry. But for the workers caught in the middle, acquisitions can be synonymous with anxiety. 

Layoffs are often the assumed first step: The acquired company may make some cuts to their workforce, at least to ensure there aren’t redundant roles — there usually aren’t two HR departments, for example. In one of the more notable acquisitions of 2023, software company Splunk cut 7% of its workforce, or a total of 560 jobs, ahead of being acquired by Cisco. 

Even without major layoffs, an acquisition ends the stability employees once associated with their work, notes Gennarelli. Their responsibilities, goals and management will likely change to some degree, and the workplace culture may become momentarily disrupted, if not reconfigured, to reflect the new owner. Gennarelli advises leaders to hold space for employees to feel frustrated, confused or saddened by the new changes. Everyone, including leaders, will need time to adjust.

Read more: CHRO reveals how her company maintained a successful culture after 10 acquisitions

Deanna Cuadra
Senior Reporter

Deanna Cuadra is a senior reporter at Employee Benefit News. Her work covers healthcare, U.S. policy and reform, challenges faced by women and parents in the workplace and innovation in work culture … Read full bio


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