The purpose of this study was to examine the impact of restructuring state owned enterprises on financial performance and employee welfare, focusing on Malawi Posts Corporation (MPC), with the aim of assessing whether restructuring provides any benefits to both the restructured enterprise and its employees, thereby offering an alternative to full privatisation. In this study, several research methods were applied. Both primary and secondary data sources were used. Self administered questionnaires and face to face interviews were utilised to collect primary data from MPC management and employees. MPC annual reports and literature review provided the source of secondary data. Changes in financial performance were assessed by analysing two pre- and post- restructuring profitability ratios, return on equity (ROE) and return on sales (ROS). Changes in employee welfare after restructuring were measured by analysing employees’ perceptions on changes in their wages, health benefits, retirement benefits, workload, job security and job satisfaction after restructuring. Both the quantitative and qualitative data collected were analysed using Microsoft Excel and a Statistical Package for Social Sciences (SPSS).The results revealed that MPC’s financial performance and employee welfare improved after restructuring. Contrary to other research findings that restructuring, through retrenchments, increases employee job insecurity and lack of job satisfaction, this study showed that MPC employees did not experience a decline in their job security and satisfaction after restructuring. However, the limits of generalising these findings should be recognised, as they were contingent on the perceptions of sampled MPC employees.It is, therefore, concluded that the impact of restructuring MPC has been improved financial performance and employee welfare. Thus restructuring of state owned enterprises should be explored as an alternative to full privatisation, which has received a lot of negative criticism from the general public.