The global uncertainty recently escalated by the changes in U.S. tariff policies and the halt of USAID funding have posed operational challenges to business and non-business enterprises. In response to these challenges, enterprises have restructured their operations (and, in some serious cases, suspended their entire operations). The immediate and inevitable response is workforce restructuring.

Workforce restructuring does not necessarily equate to workforce reduction. There are numerous strategies to rationalize costs while maintaining the current headcount, ensuring that the organizations can effectively navigate crises.

This article aims to provide a practical legal roadmap for enterprises in Cambodia that are considering restructuring their workforce. We explore various alternatives to layoffs, while also providing guidance on layoffs when necessary.