Red Umbrella - Mental Health First Aider.

Redundancy and Other Life Changes: the Impact on Mental Health

Redundancy and similar important work-life changes can profoundly affect people's mental health, leading to a variety of emotional, psychological, and physical challenges.

The Mental Health Risks of Redundancy and Major Changes at Work

Work is a substantial part of an individual’s daily life and sense of identity, and any related change can have an impact on mental health, particularly major changes such as being made redundant, dismissed or fired.

A lack of job security can cause uncertainty about one’s future, leading individuals to doubt their abilities, their choices, and their self-worth.

Financial worries are a leading source of stress in employees, and issues such as redundancy can cause existing concerns to worsen to a significant extent, in some cases even resulting in relationship strain.

Dismissal can also be akin to experiencing a loss, causing people to experience lower self-esteem, grief and even feel hopeless.

Red Umbrella - Group Working Together.

The emotional and psychological effects of an event such as redundancy can be severe and life-changing, giving rise to issues such as:

  • Stress

  • Anxiety

  • Depression

  • Feelings of loss/grief

  • Low self-esteem

  • Identity crisis

  • Health problems such as high blood pressure and a weakened immune system

  • Sleep disturbances

  • Withdrawal

However, it’s important to remember that even potentially positive work changes such as retirement, career change, promotions or getting a new job can be overwhelming for individuals, becoming a source of stress and other wellbeing-related issues.

Strategies for Coping with Redundancy

It is important to acknowledge the profound effects of redundancy and other major changes at work, and taking steps to safeguard your mental health, emotional and physical wellbeing and your professional future is instrumental:

  • Seek professional help – those who are struggling with their mental health as a result of redundancy should consider therapy or counselling to discuss and process their emotions in a safe space

  • Create a new routine – if you’ve just lost your job, you may find your new day-to-day life unfamiliar, so building a new daily routine can help provide a sense of purpose

  • Consider your career goals – being dismissed may lead you to reconsider your career, motivate you to explore new opportunities or invest in skill development to improve future prospects; goal setting can help maintain focus on your next steps

  • Network and reach out for help – interacting with employers, recruiters or professional advisers can help enhance future job prospects and open doors to new and exciting opportunities, while connecting with individuals who may be in a similar situation can help provide emotional support

  • Take care of your body and mind – regular physical activity as well as practising mindfulness and meditation can help relieve stress and symptoms of ill mental health

Are You Experiencing Redundancy and Need Support?

Visit the official UK Government website to learn more about your rights: and find related mental health support here:

Red Umbrella - Lady in red.

Want to Talk About Workplace Mental Health Solutions?