Creating new and positive structures within a struggling company requires strategy and care. Brute force, while easy, is the last option any leader should consider.
Mike Moffett, partner of operational restructuring at PwC, unveils some considerations for companies wanting to restructure during a difficult time.
Rolls-Royce has issued its fifth profit warning in less than two years due to weak demand, leading its new boss to outline plans for a “major restructure”.
The BBC plans to axe more than 1,000 employees in order to save the corporation £50m, which will be achieved by merging divisions and removing management tiers.
There are a wide variety of reasons why mergers and acquisitions fail: flawed intentions behind the merger, deals done with highly rated stock, a fear to acquire before being acquired, gaps in the due diligence or cultural and team challenges.