Redundancy occurs when the employer needs to reduce the workforce. This may be because of a closure, a relocation or a reorganisation. The result is that the employer needs to dismiss one or more employees because there are (or are expected to be) fewer jobs, or the need for a particular job no longer exists.
Those being made redundant have legal rights:
In addition employees with more than 2 years' service are entitled to a redundancy payment.
There is a helpful and free leaflet from the TUC Facing Redundancy. It is available on the web or from the know your rights line 0870 600 4882 (national rate, 8am-10pm).