Current:Home > NewsCompanies are now "quiet cutting" workers. Here's what that means. -Wealth Navigators Hub
Companies are now "quiet cutting" workers. Here's what that means.
View
Date:2025-04-24 23:21:41
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! (8)
Related
- Civic engagement nonprofits say democracy needs support in between big elections. Do funders agree?
- 2022 was the year crypto came crashing down to Earth
- Environmental Groups Don’t Like North Carolina’s New Energy Law, Despite Its Emission-Cutting Goals
- Will a Summer of Climate Crises Lead to Climate Action? It’s Not Looking Good
- $73.5M beach replenishment project starts in January at Jersey Shore
- New York’s Use of Landmark Climate Law Could Resound in Other States
- You'll Whoop It up Over This Real Housewives of Orange County Gift Guide
- Interest rates up, but not on your savings account
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- Who created chicken tikka masala? The death of a curry king is reviving a debate
Ranking
- Pressure on a veteran and senator shows what’s next for those who oppose Trump
- As Rooftop Solar Grows, What Should the Future of Net Metering Look Like?
- For 3 big Alabama newspapers, the presses are grinding to a halt
- Two Louisiana Activists Charged with Terrorizing a Lobbyist for the Oil and Gas Industry
- A South Texas lawmaker’s 15
- Louisville’s ‘Black Lives Matter’ Demonstrations Continue a Long Quest for Environmental Justice
- Restoring Utah National Monument Boundaries Highlights a New Tactic in the Biden Administration’s Climate Strategy
- How Britain Ended Its Coal Addiction
Recommendation
Bill Belichick's salary at North Carolina: School releases football coach's contract details
How Britain Ended Its Coal Addiction
Wells Fargo to pay $3.7 billion settling charges it wrongfully seized homes and cars
Amid blockbuster decisions on affirmative action, student loan relief and free speech, Supreme Court's term sees Roberts back on top
B.A. Parker is learning the banjo
Amid blockbuster decisions on affirmative action, student loan relief and free speech, Supreme Court's term sees Roberts back on top
Southwest cancels 5,400 flights in less than 48 hours in a 'full-blown meltdown'
Polar Bear Moms Stick to Their Dens Even Faced With Life-Threatening Dangers Like Oil Exploration