Current:Home > MyCompanies are now "quiet cutting" workers. Here's what that means.-Angel Dreamer Wealth Society D1 Reviews & Insights
Companies are now "quiet cutting" workers. Here's what that means.
View Date:2024-12-24 06:59:49
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! (1734)
Related
- Mississippi woman pleads guilty to stealing Social Security funds
- New York City Mayor Eric Adams vows to fight charges in criminal indictment
- NFL MVP race after Week 3: Bills' Josh Allen, Vikings' Sam Darnold lead way
- It's not just fans: A's players have eyes on their own Oakland Coliseum souvenirs, too
- Jana Kramer’s Ex Mike Caussin Shares Resentment Over Her Child Support Payments
- Judge directs NYC to develop plan for possible federal takeover of Rikers Island jail
- Tommy John surgery is MLB's necessary evil 50 years later: 'We created this mess'
- Hurricane Helene threatens ‘unsurvivable’ storm surge and vast inland damage, forecasters say
- Martin Scorsese on faith in filmmaking, ‘The Saints’ and what his next movie might be
- Americans are more likely to see Harris’ gender as a hurdle than they were for Clinton: AP-NORC poll
Ranking
- Why California takes weeks to count votes, while states like Florida are faster
- Check out refreshed 2025 Toyota Sienna minivan's new extra features
- Philadelphia mayor reveals the new 76ers deal to build an arena downtown
- New York City Mayor Eric Adams vows to fight charges in criminal indictment
- Worker trapped under rubble after construction accident in Kentucky
- NASA, Boeing and Coast Guard representatives to testify about implosion of Titan submersible
- Get your Narcan! Old newspaper boxes are being used to distribute overdose reversal drug
- UFC reaches $375 million settlement on one class-action lawsuit, another one remains pending
Recommendation
-
Digital Finance Research Institute Introduce
-
NASA, Boeing and Coast Guard representatives to testify about implosion of Titan submersible
-
Ryan Reynolds' Deadpool mocks Marvel movies in exclusive deleted scene
-
Hoda Kotb Shares Why She's Leaving Today After More a Decade
-
Olivia Culpo Celebrates Christian McCaffrey's NFL Comeback Alongside Mother-in-Law
-
Buying or selling a home? Here are Tennessee's top real-estate firms
-
Alan Eugene Miller to become 2nd inmate executed with nitrogen gas in US. What to know
-
Mark your calendars: 3 Social Security COLA dates to know for 2025