re·or·ga·ni·za·tion | \(ˌ)rē-ˌȯr-gə-nə-ˈzā-shən, -ˌȯrg-nə-\

Definition of reorganization 

: the act or process of reorganizing : the state of being reorganized especially : the financial reconstruction of a business concern

Keep scrolling for more

Other Words from reorganization

reorganizational \(ˌ)rē-ˌȯr-gə-nə-ˈzā-shnəl, -shə-nᵊl \ adjective

Examples of reorganization in a Sentence

Recent Examples on the Web

In an executive order yesterday, Trump eliminated the national cybersecurity coordinator position in a reorganization of the NSC, placing authority of all things cyber on Bolton and his NSC staffers. Sean Gallagher, Ars Technica, "Trump eliminates national cyber-coordinator job, gives Bolton keys to the cybers," 16 May 2018 The reorganization shrunk the DNR's structure from seven divisions to five and also eliminated the Bureau of Science Services. Paul A. Smith, Milwaukee Journal Sentinel, "Wisconsin warden shortage and changes in responsibilities raise concerns," 14 July 2018 The move marks the largest reorganization at Army headquarters since 1973, when the Army sought to reorient itself after the Vietnam War and created both Training and Doctrine Command and Forces Command. Dan Lamothe, Washington Post, "Army to unveil details about new Futures Command in biggest reorganization in 45 years," 12 July 2018 Three new agencies were formed in the massive reorganization and housed under DHS: ICE; CBP; and Immigration and Citizenship Services, which handles visas, green cards and naturalization. NBC News, "Fact check: Critics call ICE a 'deportation force.' Are they right?," 11 July 2018 How paid for: The MDOT reorganization would come from existing funds. Paul Egan, Detroit Free Press, "Does anyone running for governor have a new idea? We asked the candidates," 6 July 2018 In the reorganization’s crosshairs was the Puerto Rican Institute of Statistics (PRIS), an independent government agency in San Juan. Lizzie Wade, Science | AAAS, "After outcry, Puerto Rico’s legislature spares statistical agency," 3 July 2018 The company did not immediately make clear how many jobs are at risk of being affected by the reorganization. Jonathan Sperling, Fortune, "McDonald's Plans to Eliminate a Number of Corporate Jobs as Part of Reorganization Plan," 7 June 2018 Airbus has had to cover the costs of placing those aircraft in storage and the reorganization of its production line and supply chain to adjust for the change in schedule. Benjamin D Katz,, "Airbus Sees Higher Costs From A320Neo Delays as Gliders Hit 100," 3 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'reorganization.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

See More

First Known Use of reorganization

1751, in the meaning defined above

Keep scrolling for more

Learn More about reorganization

Share reorganization

Statistics for reorganization

Last Updated

18 Oct 2018

Look-up Popularity

Time Traveler for reorganization

The first known use of reorganization was in 1751

See more words from the same year

Keep scrolling for more

More Definitions for reorganization



Financial Definition of reorganization

What It Is

Reorganization may refer to the rehabilitation of a company's finances pursuant to a bankruptcy. It can also refer to any process that affects the tax structure of a corporation. In addition, reorganization may refer to a merger or acquisition or sale of a company that changes the ownership, stock, or legal and management structure.

How It Works

Reorganization is a formal court-supervised process of restructuring a company's finances after a bankruptcy. In accordance with bankruptcy laws, specifically Chapter 11, a company is given protection from creditors during the time period when the company proposes and a bankruptcy court reviews and approves a specific reorganization plan. The reorganization is intended to repay creditors to the maximum extent possible and to restructure the company's finances, management, and operations to prevent the same problem from arising again.

A company may reorganize itself, including its legal or corporate structure to take advantage of existing or new tax regulations.

A merger or acquisition of a company may result in a reorganization of the company ownership, equity structure, management, and operations to take advantage of the efficiencies of new management, new technologies, and new capital assets.

Why It Matters

Reorganization is an important step for a business since it has the potential to open up new opportunities, increase efficiencies and profits, and give legal and financial protection during difficult times.

Source: Investing Answers


re·or·ga·ni·za·tion | \ˌrē-ˌȯr-gə-nə-ˈzā-shən \

Legal Definition of reorganization 

1 : the act of reorganizing : the state of being reorganized

2a : the rehabilitation of the finances of a business in accordance with a plan approved by a bankruptcy court under the provisions of chapter 11 of the Bankruptcy Code

b : any of various procedures (as recapitalization or merger) that affect the tax structure of a corporation under the Internal Revenue Code and often produce favorable tax treatment

A reorganization \ˈā- \

: a reorganization that consists of a merger or consolidation which complies with the requirements of applicable state statute

B reorganization \ˈbē- \

: a reorganization involving the acquisition by one corporation of the stock of another corporation in exchange solely for all or some of the voting stock of the acquiring corporation or its parent either of which has control of the acquired corporation immediately after the acquisition

C reorganization \ˈsē- \

: a reorganization involving the acquisition by one corporation of substantially all of the property of another corporation in exchange solely for all or part of the voting stock of the acquiring corporation or its parent regardless of any liability assumed by the acquiring corporation as a result of the acquisition

D reorganization \ˈdē- \

: a reorganization involving a transfer by a corporation of all or part of its assets to another corporation that results in control of the other corporation being immediately placed in the transferor or one or more of its shareholders or both but under which the stock or securities of the other corporation must be distributed in a qualified transaction — see also spin-off, split-off, split-up

E reorganization \ˈē- \

: a reorganization that consists of a recapitalization

F reorganization \ˈef- \

: a reorganization consisting merely of a change in the identity, form, or place of organization of a corporation

G reorganization \ˈjē- \

: a reorganization involving a transfer by a corporation of all or part of its assets to another corporation under a bankruptcy or similar proceeding provided that the stock or securities of the other corporation are distributed in a qualified transaction

3 : alteration of the existing structure of governmental units (as bureaus or legislative committees) and the lines of control and authority between them usually to promote greater efficiency and responsibility

Keep scrolling for more

Comments on reorganization

What made you want to look up reorganization? Please tell us where you read or heard it (including the quote, if possible).


lying above or upon

Get Word of the Day daily email!

Test Your Vocabulary

Words from Greek and Roman Mythology Quiz

  • the-triumph-of-venus-by-alessandro-magnasco
  • Boreal comes from the name of the ancient Greek god of which wind?
Spell It

Can you spell these 10 commonly misspelled words?

Word Winder's CrossWinder

Test Your Knowledge - and learn some interesting things along the way.


Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!