Careers advice
How to explain redundancy in a job interview
Losing your job through redundancy is never easy, but it doesn’t have to be a deal-breaker for your next career move.
Last updated: 8 May 2026
Redundancy is a word that can send a shiver down any Kiwi worker’s spine. Whether it’s due to a company merger, a shift in the economy, or a business restructure, the reality is that redundancy is a common part of the modern working world. In fact, most people will experience it at least once in their career.
The most important thing to remember is that redundancy is about the role, not the person. It is a business decision, not a reflection of your skills, your worth, or your character. However, when you’re sitting in an interview chair and the question “Why did you leave your last role?” pops up, it can still feel a bit awkward.
Here is how you can navigate that conversation with honesty and confidence to land your next great opportunity.
Should you be honest about redundancy?
The short answer is yes. In New Zealand’s tight-knit job market, honesty is always the best policy. Interviewers value transparency, and being upfront about redundancy shows integrity.
There is absolutely no shame in being made redundant. Since it’s a result of business requirements, employers don't view it as a "red flag" the same way they might view being let go for performance issues. By being honest, you control the narrative and can quickly pivot the conversation towards why you’re the right fit for the new role.
Most recruiters and hiring managers will know that redundancy doesn't reflect performance.
Framing redundancy on your CV and cover letter
You don't need to write a novel about your redundancy in your application. A simple, one-sentence explanation is usually enough to bridge the gap in your employment history.
On your CV, you can list it next to the dates of your last role, for example: "Role made redundant due to company-wide restructure." In your cover letter, you can mention that you are now looking for new challenges following a redundancy. This prevents the recruiter from wondering if there was a performance issue and allows them to focus on your experience. If you’re looking to pivot into a new industry, check out our guide on how to write a transferable skills CV.
Answering the "Why did you leave?" question
When the interviewer asks why you left your previous position, be prepared with a concise, neutral answer. Avoid over-explaining or getting bogged down in the details of the company’s financial woes.
Example script:
- "My previous company went through a structural realignment, and unfortunately, my role was one of several that were discontinued. While it was a tough transition, I’m proud of what I achieved there, and I’m now excited to bring those skills to a new environment like this one."
This approach is professional, keeps the focus on the business decision, and shows you have a positive outlook on the future.
Turning a challenge into an opportunity
Redundancy often provides a rare chance to take a breath and think about what you actually want to do next. For many, it’s the push they needed to switch industries or level up their skills.
If you’ve taken some time off between roles, tell the interviewer how you’ve used that time. Did you do a short course? Did you volunteer? Or did you simply take the time to ensure your next move was the right one? Employers love to see initiative.
If you are looking for a fresh start, there are plenty of sectors in Aotearoa looking for keen workers right now:
- Healthcare: If you have a heart for helping, the healthcare sector is always looking for helping hands.
- Construction: With thousands of workers needed, construction is a great way to help build Aotearoa.
- Transport/Driving: For those who enjoy life on the move, a role in freight, delivery, or passenger transport would be the perfect fit.
- Warehousing: Reliable staff are always in demand. If you’re after flexible shifts, warehouse work might be for you.
Be honest about redundancy and land your next role with confidence.
What to avoid when discussing redundancy
While being honest is key, there are a few traps you should avoid to keep the interview on track:
- Don’t badmouth your old boss: Even if the redundancy process was handled poorly, stay professional. Ragging on a former employer makes you look difficult to work with.
- Don’t apologise: You didn't do anything wrong. Speak about your redundancy with the same level of confidence you use to describe your biggest achievements.
- Don’t waffle: Give your answer, then stop. The more you talk about it, the more it might seem like you haven't moved on emotionally.
Moving forward with confidence
Redundancy is a hurdle, not a finish line. By staying positive and focusing on your transferable skills, you can turn a period of uncertainty into a successful career pivot. Use the STAR method (Situation, Task, Action, Result) to talk about your past successes, and show your future employer exactly what you bring to the table.
The New Zealand job market is resilient, and there are always businesses looking for reliable, hardworking people who have weathered a few storms. When you’re ready to start applying, make sure your Trade Me Jobs Profile is up to date.
Ready to find your next role? Start searching on Trade Me Jobs today.
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