Current:Home > ScamsCompanies are now "quiet cutting" workers. Here's what that means. -AssetTrainer
Companies are now "quiet cutting" workers. Here's what that means.
View
Date:2025-04-19 05:56:22
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! (284)
Related
- Intel's stock did something it hasn't done since 2022
- Rebel Wilson calls out Sacha Baron Cohen, says she will not be 'silenced' amid new memoir
- Stock market today: Asian shares trade mixed after Wall Street closes near record finish
- New Jersey first lady Tammy Murphy suspends run for U.S. Senate
- Federal Spending Freeze Could Have Widespread Impact on Environment, Emergency Management
- Stock market today: Asian shares trade mixed after Wall Street closes near record finish
- Spring Into Style With the Best Plus Size Fashion Deals From Amazon: Leggings, Dresses, Workwear & More
- Maple syrup from New Jersey: You got a problem with that?
- EU countries double down on a halt to Syrian asylum claims but will not yet send people back
- John Tucker Must Die Stars Confirm Sequel Is in the Works 18 Years Later
Ranking
- South Korean president's party divided over defiant martial law speech
- ESPN's Rece Davis walks back 'risk-free investment' comment on sports gambling segment
- Firefighters in New Jersey come to the rescue of a yellow Labrador stuck in a spare tire
- The NCAA Tournament wants to expand without losing its soul. It will be a delicate needle to thread
- Jamie Foxx reps say actor was hit in face by a glass at birthday dinner, needed stitches
- Jennifer Lopez Showcases Her Body-Sculpting Fitness Routine
- Golden Globes land 5-year deal to air on CBS, stream on Paramount+
- Arthur Blank maintains Falcons didn't tamper with Kirk Cousins: 'There was nothing intentional'
Recommendation
Behind on your annual reading goal? Books under 200 pages to read before 2024 ends
UFC fighter disqualified for biting opponent, winner celebrates by getting tattoo
Judge sets April 15 trial date in Trump hush money case, rejecting request for a delay
Find Out How You Can Get Up To 85% Off These Trendy Michael Kors Bags
US wholesale inflation accelerated in November in sign that some price pressures remain elevated
Olivia Colman slams Hollywood pay disparities and says she'd earn more if she were a man
South Carolina court official resigns as state probes allegations of tampering with Murdaugh jury
Laurent de Brunhoff, Babar heir who created global media empire, dies at 98