Externalization of employment relations was a general trend among businesses in the 1990s. As a consequence we observe an increasing use of temporary workers, outsourcing and insourcing. This paper is concerned with the consequences of externalization of employment relations from the perspective of employees. The paper is based on an in-depth empirical study of a corporate adjustment programme in a large government-owned energy producer in Sweden. The company is trying to stimulate internal mobility by means of training programmes, adjusting its workforce to changes in market demand without lay-offs. I argue that externalization of employment relations is not only a matter of temporary, administrative or geographical distance between employer and employee. Instead a complementary form - externalization of responsibility - is suggested. The results may have consequences for the understanding of human resource policies aiming at employability.