Current:Home > MarketsCompanies are now "quiet cutting" workers. Here's what that means. -PureWealth Academy
Companies are now "quiet cutting" workers. Here's what that means.
View
Date:2025-04-11 12:54:26
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! (4)
Related
- Police remove gator from pool in North Carolina town: Watch video of 'arrest'
- Poland reintroduces restrictions on accessing areas along Belarus border due to migration pressure
- Running out of marijuana, Martha’s Vineyard and Nantucket get approval to ship it to the islands
- Wildfire claims 6 homes near Arizona town, shuts Phoenix-to-Las Vegas highway
- A Georgia governor’s latest work after politics: a children’s book on his cats ‘Veto’ and ‘Bill’
- Last ship of famed Antarctic explorer Ernest Shackleton found off the coast of Canada
- Louisville police major lodged the mishandled complaint leading to chief’s suspension, attorney says
- Supreme Court preserves abortion pill access, rejecting mifepristone challenge
- Breaking debut in Olympics raises question: Are breakers artists or athletes?
- Taylor Swift to end record-breaking Eras Tour in December, singer announces
Ranking
- Megan Fox's ex Brian Austin Green tells Machine Gun Kelly to 'grow up'
- EPA to disband Red Hill oversight group amid Navy complaints
- Climate Protesters Take to the Field at the Congressional Baseball Game
- Backers say they have signatures to qualify nonpartisan vote initiatives for fall ballot
- Breaking debut in Olympics raises question: Are breakers artists or athletes?
- Swimmer Lia Thomas' case against World Aquatics transgender athlete rules dismissed
- Jan. 6 offenders have paid only a fraction of restitution owed for damage to U.S. Capitol during riot
- Safety concerns arise over weighted baby sleeping products after commission's warning
Recommendation
House passes bill to add 66 new federal judgeships, but prospects murky after Biden veto threat
Decorated veteran comes out in his own heartbreaking obituary: 'I was gay all my life'
New Hampshire remains New England’s lone holdout against legalizing recreational marijuana
Ex-US Customs officer convicted of letting drug-filled cars enter from Mexico
Jamaica's Kishane Thompson more motivated after thrilling 100m finish against Noah Lyles
Halle Bailey Reveals She Back to Her Pre-Baby Weight 7 Months After Welcoming Son Halo
Mama June admits she took daughter Alana's money from Honey Boo Boo fame
Hezbollah fires rockets at Israel after commander's assassination, as war with Hamas threatens to spread