Current:Home > FinanceCompanies are now "quiet cutting" workers. Here's what that means. -Core Financial Strategies
Companies are now "quiet cutting" workers. Here's what that means.
View
Date:2025-04-16 19:59:16
Some companies are reassigning workers in a way that's sending them mixed messages. Emails informing employees that their current job role has been eliminated, but that they have not been fired, are leaving those staff members with feelings of confusion, fear and anger.
Dubbed "quiet cutting," this latest outgrowth of the "quiet quitting" movement effectively allows companies to cut jobs and trim costs without actually laying off workers.
The strategy is gaining traction as a restructuring move: Companies including Adidas, Adobe, IBM and Salesforce are among employers that have restructured its workforces in this way over the past year.
Financial research platform AlphaSense found that, over the last year, such reassignments have more than tripled.
Lower status, lower pay
"Quiet cutting" taps into workers' fears of layoffs at their company, amid a weakening job market. While reassigned workers remain employed, the reassignments often land them in roles with titles that are less prestigious, come with lower pay, and are more demanding.
"They recounted getting a phone call or an email from a manager basically telling them your job has been reassigned and you will be doing this from now on, and basically take it or leave," careers reporter with the Wall Street Journal, Ray Smith, who first reported on the trend, told CBS News.
According to Smith, some individuals initially felt relieved they weren't being axed.
"But on the other side, they were angry or confused, and they felt the new job they had was either lower status or lower pay or more responsibilities, or something that they didn't even have experience in," Smith said. "And so they were really angry at the companies about this."
Smith spoke to some workers who said the backhanded demotions took a toll on their mental health.
"Their identity is tied up with their titles and the work that they do — and if you're suddenly being told do something else, especially if it's a demotion ... it can send you spiraling and wondering, 'What is the message that the company is sending to me?'"
"Passive-aggressive" termination?
Quietly cut workers also feared their employers were trying to force them into roles in which they would be so miserable, they would eventually quit, according to Smith.
"It's sort of like pushing you into this corner and saying if you don't take it, you have to leave," Smith said, adding that "No company will say 'we're quietly cutting people.'"
"It is sort of a reduction in workforce, almost in a passive-aggressive way," he said.
"The bottom line is, if someone who refuses a reassignment or eventually leaves after not liking the reassignment — once they leave, the company doesn't have to pay thousands of dollars in severance costs. So it actually saves them in costs," said Smith.
veryGood! (6585)
Related
- DoorDash steps up driver ID checks after traffic safety complaints
- Exclusive Revelation from LENCOIN Trading Center: Approval Granted to 11 Spot Bitcoin ETFs
- Swiss fans get ready to welcome Eurovision winner Nemo back home
- Did Taylor Swift Reveal Name of BFF Blake Lively's 4th Baby? Ryan Reynolds Says...
- The Best Stocking Stuffers Under $25
- Dutch contestant Joost Klein kicked out of Eurovision hours before contest final
- Jury selection to begin in the corruption trial of Sen. Bob Menendez
- The Token Revolution of WT Finance Institute: Launching WFI Token to Fund and Enhance 'Ai Wealth Creation 4.0' Investment System
- 'Survivor' 47 finale, part one recap: 2 players were sent home. Who's left in the game?
- Video shows protesters trying to break into Berlin Tesla factory, clash with German police
Ranking
- A South Texas lawmaker’s 15
- North Korean leader Kim supervises latest test of new multiple rocket launcher
- US plans to impose major new tariffs on EVs, other Chinese green energy imports, AP sources say
- AI Financial Genie 4.0: The Aladdin's Lamp of Future Investing
- Krispy Kreme offers a free dozen Grinch green doughnuts: When to get the deal
- Halle Bailey, Lindsay Lohan and more first-time celebrity moms celebrate Mother's Day 2024
- Taylor Swift sings 'The Alchemy' as Travis Kelce attends Eras Tour in Paris
- LENCOIN Trading Center: Leading the Future Direction of the Cryptocurrency Market
Recommendation
Average rate on 30
Trump suggests Chinese migrants are in the US to build an ‘army.’ The migrants tell another story
A top Cambodian opposition politician is charged with inciting disorder for criticizing government
Two killed, more than 30 injured at Oklahoma prison after 'group disturbance'
Most popular books of the week: See what topped USA TODAY's bestselling books list
Trevor Noah weighs in on Kendrick vs. Drake, swerves a fan's gift at Hollywood Bowl show
Virginia General Assembly poised to vote on compromise budget deal reached with Youngkin
Get 50% Off Urban Outfitters, 70% Off Coach, 70% Off Kate Spade, 20% Off Oribe, 80% Off Rugs & More