Navigating organisational change: Redundancies and responsibility

As pressures mount across the early childhood education and care (ECEC) landscape, reports of redundancies are beginning to circulate within the sector. Growing tension is being felt by providers as they grapple with rising costs, changing policy expectations and evolving family needs.

Over the past 12 months, providers have been operating in an increasingly complex environment. Wage increases under the new multi-employer bargaining agreements, persistent workforce shortages, and the looming financial burden of ongoing compliance have combined to put significant strain on service budgets. For some, these factors have led to difficult decisions around staffing, including restructuring and, in some cases, redundancy.

While redundancies are sometimes framed as strategic restructuring their effects are immediate and personal. The experience extends beyond the loss of employment, often disrupting professional identity, financial security, and deeply held relationships.

In a sector where continuity of care and trusted relationships are central to quality, the impact of redundancies can be far-reaching, influencing team morale, service cohesion and community confidence well beyond those directly affected.

This moment also raises questions about the adequacy of current support structures for providers and professionals. Are there clear protocols in place for managing workforce changes ethically and transparently? Do affected employees receive appropriate transition support? Is there sufficient oversight to ensure that redundancies are used as a last resort rather than a default lever in times of financial stress?

Transition support must go beyond a formal notice period. Access to employee assistance programs (EAPs), structured wellbeing check-ins, support with resume writing, and pathways to internal redeployment or alternative employment opportunities are all critical components of a responsible redundancy process. Tools and resources that help individuals navigate this disruption with dignity and agency should be a minimum standard.

Equally, it is important to acknowledge the emotional and psychological toll of redundancy. The loss of a familiar role, identity and connection can be deeply unsettling. Recognition of these emotional impacts should be embedded in all leadership responses, ensuring that those affected are supported with empathy and respect.

There is emerging speculation about the potential offshoring of roles previously based in centre based support offices, as some organisations explore cost-saving strategies that may include outsourcing administrative or support functions. These concerns may reflect broader concerns around transparency in organisational decision-making, including communication with centre staff and families as well as the long-term implications for local workforce sustainability, data security, and the quality of customer service.

Importantly, these questions must be addressed not just in service-level policies, but across systems and sector-wide strategy. The ECEC workforce is one of the sector’s most valuable assets. Protecting its stability, morale and professional integrity must be central to any long-term sustainability plan.

As the sector continues to evolve, transparency, ethical leadership and proactive workforce planning will be essential in ensuring that the ECEC sector continues to deliver high-quality outcomes for children, while also protecting those who make this work possible.

Redundancies may be a symptom of wider structural and economic pressures. But how the sector responds will shape its future.