Current:Home > ContactCompanies are now "quiet cutting" workers. Here's what that means. -Horizon Finance School
Companies are now "quiet cutting" workers. Here's what that means.
View
Date:2025-04-19 21:31:09
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! (64754)
Related
- Romantasy reigns on spicy BookTok: Recommendations from the internet’s favorite genre
- Brittany Snow Reveals “Saddest Part” of Ex Tyler Stanaland's Selling The OC Drama
- TikTok is under investigation by the FTC over data practices and could face a lawsuit
- Jason Kelce Teases Brother Travis Kelce About Manifesting Taylor Swift Relationship
- Taylor Swift makes surprise visit to Kansas City children’s hospital
- Christina Ricci Reveals Why She Didn't Initially Bond With Daughter Cleopatra
- Christina Ricci Reveals Why She Didn't Initially Bond With Daughter Cleopatra
- President Biden to bring out the celebrities at high-dollar fundraiser with Obama, Clinton
- Which apps offer encrypted messaging? How to switch and what to know after feds’ warning
- Doorbell video shows mom fighting off man who snatched teen from her apartment door in NYC
Ranking
- Civic engagement nonprofits say democracy needs support in between big elections. Do funders agree?
- Pennsylvania’s mail-in ballot dating rule is legal under civil rights law, appeals court says
- Catch up on our Maryland bridge collapse coverage
- Dairy Queen announces new 2024 Summer Blizzard Treat Menu: Here's when it'll be available
- Meet first time Grammy nominee Charley Crockett
- House of Villains Season 2 Cast Revealed: Teresa Giudice, Richard Hatch and More
- A $500K house was built on the wrong Hawaii lot. A legal fight is unfolding over the mix-up
- Rebel Wilson Alleges Sacha Baron Cohen Asked Her to Stick Finger in His Butt
Recommendation
DoorDash steps up driver ID checks after traffic safety complaints
Kristen Stewart Shares She and Fiancée Dylan Meyer Have Frozen Their Eggs
Julian Assange, WikiLeaks founder, given chance to appeal against U.S. extradition by U.K. court
Driving along ... and the roadway vanishes beneath you. What’s it like to survive a bridge collapse?
San Francisco names street for Associated Press photographer who captured the iconic Iwo Jima photo
'Why wouldn't we?' Caitlin Clark offered $5 million by Ice Cube's BIG 3 league
Former Child Star Frankie Muniz's Multi-Million Dollar Net Worth May Surprise You
Christina Applegate says she has 30 lesions on her brain amid MS battle