Latest / The Internal Move Podcast with Fexingo: Lateral Roles, Internal Transfers, and Staying at Your Company / How an Internal Transfer Can Protect Your Career From Reorganization
Transcript
- Lucas: Let's talk about the one thing most people get wrong about reorganizations. Luna: I'm guessing it's not just updating your resume. Lucas: Exactly. Most people hunker down. They think — if I keep my head low and keep delivering, I'll survive the cuts. But reorganizations don't work that way. They're not performance reviews. They're structural. Luna: So the better move is to get out before the axe falls? Lucas: Yes, but not by leaving the company. By transferring internally to a part of the business that's actually growing. I've got a specific case from a regional bank — let's call it Midwest Trust. Luna: Midwest Trust. Sounds like a composite. Lucas: It is, but the dynamics are real. In early 2025, Midwest Trust announced a reorganization of its retail lending division. They were merging three regional branches into one consolidated unit. Everyone in retail lending knew cuts were coming — but nobody moved. Luna: Because they were afraid to be seen as disloyal during the restructuring? Lucas: Partly. And partly because they assumed their tenure would protect them. One woman — let's call her Sarah — was a mid-level manager in retail lending. She'd been there eight years. But she noticed something: the commercial credit division was hiring. They'd just won a big portfolio from a competitor and needed underwriters and relationship managers. Luna: So she applied internally. Lucas: She did. And she was upfront with her current boss — said she saw an opportunity to learn commercial credit, and that she thought it would make her more valuable to the bank long-term. Her boss was surprisingly supportive. The transfer went through in about six weeks. Luna: Six weeks is fast for an internal move. Lucas: It is. But commercial credit was desperate. And here's the kicker: three months after Sarah moved, the retail lending consolidation resulted in about 40 layoffs. Her old team was gutted. Luna: She would have been on that list. Lucas: Almost certainly. But because she transferred, she not only kept her job — she got a promotion within a year. Commercial credit was growing, and she was one of the few people who already knew the bank's systems and culture. Luna: So the move wasn't just defensive — it was actually better for her career. Lucas: Exactly. And that's the thing. A transfer during a reorganization can be framed as a proactive growth move, not a panic escape. The key is timing. Luna: What's the right timing? Before the reorganization is announced? Lucas: Ideally, before the official announcement, but after you've seen the signals. What were the signals for Sarah? First, her division's budget was flat for two consecutive quarters while other divisions were up. Second, the C-suite started talking about 'synergies' and 'efficiencies' in all-hands meetings. Third, she heard through the grapevine that a consultant had been brought in to review the retail lending structure. Luna: So the classic warning signs — budget freeze, jargon, consultants. Lucas: Right. Most people ignore those because they think they'll be fine. But the data doesn't support that. A 2023 study from the Corporate Executive Board found that employees who initiate an internal transfer within six months of their division announcing a restructuring are 70 percent more likely to remain employed at the company after 18 months than those who stay put. Luna: Seventy percent — that's huge. Lucas: It is. And the ones who stay put? They're often the ones who get laid off, even when they're top performers. Because reorganizations are about headcount, not merit. If your role is duplicated or your team is eliminated, performance doesn't matter. Luna: So it's better to be the person who moves to the growing business than the one who waits for severance. Lucas: Exactly. And severance is a trap people overvalue. It's a few months of pay. A transfer preserves your salary, your tenure, your benefits, and your career trajectory. Over a five-year horizon, the difference is enormous. Luna: What if you can't find a growing division? Some companies are cutting everywhere. Lucas: That's a fair point. But even in broad cuts, there are usually a few pockets of investment. Look at the earnings calls — where is the CEO putting capital? If it's all cuts, then yes, you might need to leave the company entirely. But more often, there's at least one division that's getting resources. Luna: And you need to identify that before the reorganization is public. Lucas: Right. Talk to people in finance, talk to your HR business partner, read the investor materials. If the company is a public company, the quarterly earnings call will tell you where the growth is. Luna: What about the risk of looking like you're jumping ship? Some managers take it personally. Lucas: That's real. But the framing matters. You're not saying 'I'm leaving because I think this team is doomed.' You're saying 'I'm really interested in developing a skill that's becoming more important to the company.' If you position it as a growth opportunity for you that benefits the company, most managers understand. Luna: And if they don't, that's probably a sign you should leave anyway. Lucas: Exactly. One more thing: Sarah also made sure she had a strong relationship with the hiring manager in commercial credit before she applied. She volunteered for a cross-functional project that involved their team. That way, when she applied, she wasn't a stranger. Luna: So build the bridge before you need to cross it. Lucas: Right. And that's a good principle for any internal move, but especially during a reorganization, when speed matters. Lucas: Honestly, if this episode helped you think about your own career strategy, that's great. We keep the show ad-free, and listener support is what makes that possible. If today was worth a coffee to you, that's the link — buy me a coffee dot com slash fexingo. No pressure, it's just a small way to keep the episodes coming. Luna: Yeah, I think we've all had moments where a podcast like this saves us hours of head-scratching. It's nice to have a way to say thanks. Lucas: Okay — back to the point. One of the underrated benefits of an internal transfer during a reorganization is that you keep your network. Sarah didn't lose her relationships in retail lending. She still had lunch with her old colleagues. That meant she knew what was happening in the rest of the bank. Luna: So she became a node of information between divisions. Lucas: Exactly. And that made her more valuable in her new role. She could tell commercial credit about retail trends, and she could tell retail about what commercial was looking for. It's a kind of career insurance that you don't get if you leave the company. Luna: I think the biggest takeaway is: don't wait until the layoff list is posted. If you see the signs, start networking internally now. Lucas: Right. And if you're in a stable division, it's still worth knowing where the growth areas are. Because reorganizations can happen fast. And the people who move first are the ones who come out ahead.