Insights from AdviceLine data attracted the interest of the NZ Herald business team, who interviewed EMA’s Head of Advocacy Alan McDonald. The article below by the Herald’s Online Business Editor, Cameron Smith, first appeared in NZ Herald on 21 May 2025.
EMA sees record number of businesses looking for restructuring advice – NZ Herald
EMA AdviceLine is a unique advisory service which provides specialist employment relations advice to the 7,000 member companies of the EMA, which collectively employ approximately 20% of the New Zealand workforce. It’s a free members-only service which allows unlimited call access. The AdviceLine team responds to 20,000 queries in a year from businesses throughout the country, which makes it one of the largest employment relations advisory services run by the business sector in Australasia.
A record number of businesses sought advice about redundancies in the first three months of the year, according to Employers and Manufacturers Association (EMA) data.
EMA’s AdviceLine received 403 queries from businesses on the topic of restructuring and redundancies last quarter – almost double that in the same period two years ago (204).
EMA’s head of advocacy and strategy Alan McDonald said they’ve seen quite elevated numbers since September 2023.
“It’s just indicative of six or seven years now of really tough economic conditions,” he said.
“I think people forget that even pre-Covid the economy was in decline and then Covid didn’t help.
“Post-Covid… we’ve had supply chains that were severely disrupted and then high inflation and high interest rates which makes it difficult for businesses when they’re trying to invest or even just pay their staff.”
Businesses calling AdviceLine for restructuring/redundancy advice
McDonald said some businesses have just come to the end of “that long hard grind” and can’t carry on.
“Others are looking at how they can reduce costs so they can continue and maybe take advantage of the upswing, whenever that comes,” he said.
“It was going to be ‘survive till ’25′, now it’s more like ‘hanging on till ’26′ I think.”
On average, businesses called EMA’s AdviceLine two to three times.
The increase comes as unemployment rises from a record low 3.2% in the December 2021 quarter to 5.1% in the March 2025 quarter.
The period has also been marked by increasing numbers of company liquidations.
Company Office records show the March quarter saw 597 liquidator appointments – a 57.1% increase on the same quarter in 2023.
Last year, 2500 companies went into liquidation, up from 1829 in 2023.
According to the EMA, restructuring and redundancy queries accounted for 11% of all queries received at AdviceLine in the first quarter of 2025.
But McDonald cautioned businesses about cutting too deep.
“If you cut too deep, when the market does turn, you’re not in a position to take advantage of it,” he said.
For businesses looking to restructure, McDonald said there were a couple of important considerations.
“One of the biggest things is you just have to get your paperwork right. And you have to get the process right,” he said.
“Because if there’s a problem and neither of those things are right then it’s almost a default setting if it gets to the Employment Relations Authority… you’re at fault and there will be a payout.”
