You may feel that a redundancy or the changes you have decide upon are the only option you have and go into the process with the outcome decided. Why not give the employee a chance to make suggestions? One of our clients had an employee that wanted a sabbatical for six months, the client had not considered this or thought the person may suggest it. Many people would be happy to move to part time for personal reasons. We are now living in a different world and we cannot just think of fixed hours either or full time or part time.
Why not consider job shares, maybe early retirement, sabbaticals, retrain for another role, reducing hours, changing place of work. You do not know what is happening in their lives so give them a chance to hear their suggestions.