Current:Home > reviewsCompanies are now "quiet cutting" workers. Here's what that means. -Blueprint Money Mastery
Companies are now "quiet cutting" workers. Here's what that means.
Fastexy View
Date:2025-04-09 19:32:02
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! (5863)
Related
- Rylee Arnold Shares a Long
- Champions Classic is for elite teams. So why is Michigan State still here? | Opinion
- Tom Brady Shares How He's Preparing for Son Jack to Be a Stud
- Oil Industry Asks Trump to Repeal Major Climate Policies
- Mets have visions of grandeur, and a dynasty, with Juan Soto as major catalyst
- Man found dead in tanning bed at Indianapolis Planet Fitness; family wants stricter policies
- Patricia Heaton criticizes media, 'extremists' she says 'fear-mongered' in 2024 election
- Champions Classic is for elite teams. So why is Michigan State still here? | Opinion
- Behind on your annual reading goal? Books under 200 pages to read before 2024 ends
- Diamond Sports Group will offer single-game pricing to stream NBA and NHL games starting next month
Ranking
- Could your smelly farts help science?
- Father, 5 children hurt in propane tank explosion while getting toys: 'Devastating accident'
- John Krasinski Revealed as People's Sexiest Man Alive 2024
- Bev Priestman fired as Canada women’s soccer coach after review of Olympic drone scandal
- Louvre will undergo expansion and restoration project, Macron says
- Wendi McLendon-Covey talks NBC sitcom 'St. Denis Medical' and hospital humor
- The Bachelorette's Desiree Hartsock Gives Birth, Welcomes Baby No. 3 With Chris Siegfried
- Keke Palmer Says Ryan Murphy “Ripped” Into Her Over Scream Queens Schedule
Recommendation
Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
Monument erected in Tulsa for victims of 1921 Race Massacre
Monument erected in Tulsa for victims of 1921 Race Massacre
Trump’s economic agenda for his second term is clouding the outlook for mortgage rates
Chuck Scarborough signs off: Hoda Kotb, Al Roker tribute legendary New York anchor
Louisiana House greenlights Gov. Jeff Landry’s tax cuts
Ex-Duke star Kyle Singler draws concern from basketball world over cryptic Instagram post
Police identify 7-year-old child killed in North Carolina weekend shooting