Quiet cutting: The latest approach to layoffs
Many organizations have recently adopted a strategic approach called "quiet cutting" concerning their employees. Quiet cutting is a workplace trend where companies strategically restructure, often reassigning employees with reduced titles and salaries as an alternative to laying off the employee, and to subtly encourage their departure. This cost-cutting tactic aims to avoid mass layoffs, functioning as a form of forced attrition.
What is quiet cutting?
Reassignment has become a crucial aspect of modern workplace relations. "Employers are searching for ways to fill upcoming roles that are more in line with their long-term objectives because they don't want to lose the talent they have already hired," says Sundeep Rana, co-founder, of Net Set Go Media. Reportedly, companies such as Adidas, Adobe, IBM, and Salesforce have participated in this.
Why does a company do quiet cutting?
For businesses, it can be costly and time-consuming to find new talent. Businesses can use internal talent to satisfy urgent needs by using quiet hiring and quiet cutting, explains Rana. "Companies that implement quiet cutting eliminate positions without terminating the individuals who hold them. As a result, workers are reassigned and relocated inside the organization," he adds.
How to respond?
As an employee, one can feel relieved that one has a job despite the extremely unstable work market. However, many also believe that their companies are pressuring them to leave to avoid having to pay a severance payout. "This may have a detrimental effect on the employee's work environment in addition to low job satisfaction and a poor work-life balance," Rana explains.
Quiet cutting and quiet firing
Quiet firing occurs when managers fail to provide their employees with the necessary guidance or training while holding their positions. This subsequently results in provoking the workers to resign from their positions. However, both quiet firing and quiet cutting have a detrimental effect on growth, productivity, and worker satisfaction. They may also damage a business's standing in the eyes of potential hires.
