After quiet quitting & quiet firing, are companies now quiet cutting?

Quiet cutting is a move by companies where they remove positions but do not fire any employees

 

 

 

 

 

 

Employees in the United States are now facing situations where they are still employed, but their positions are gone, in a move termed "quiet cutting", according to a report by the Wall Street Journal (WSJ).

 

What is quiet cutting?

 

Quiet cutting is a move by companies where they remove positions but do not fire employees working in those positions. This leads to employees being reshuffled and moved around the company.

 

According to WSJ, big corporations such as Adidas, Adobe, IBM, and Salesforce have participated in this, using terms such as "reassignment" to explain this form of restructuring.

 

Reassignment is a significant part of the modern workplace

 

Employers argue that "reassignment" is now a significant part of workplace dynamics. Companies do not want to lose talent that they have hired and are looking for ways to fill future positions that are better aligned with the corporations' long-term goals. Moreover, keeping old employees and reassigning them to new positions is more cost-effective for organisations.

 

Leaving employees on the edge

 

Many employees do not know how to manage this type of situation. On one hand, there is relief for retaining a job in a highly volatile job market. At the same time, many feel that employers are trying to push them out and trying to make them quit to avoid paying a severance package.

 

Moreover, employees have to find a way to either readjust to a new role or figure out how to move from a job they don't want back to a desired role.

 

Legal options are also limited to employees in these situations, as it may be difficult to prove malice or bad intentions on the employer's behalf.

 

How is this different from "quiet firing" and "quiet quitting"?

 

Quiet firing happens when managers inadequately support employees by not providing them with proper coaching or skilling and withholding recognition. This is usually done with the intention of leading employees to quit their jobs.

 

There are cases where this may not be intentional, and some managers may not have the competence to support their subordinates.

 

These practices can negatively impact productivity, growth and employee satisfaction. They can also harm a company's reputation in the job market.

 

On the other hand, quiet quitting is a phenomenon recognised among employees who psychologically withdraw themselves from their organisation due to poor working conditions.

 

Employees do not quit outright but instead do the bare minimum required of their job and do not put in their best efforts or show any enthusiasm for their work. This can lead to low job satisfaction and a bad work-life balance for the employee while also negatively impacting their work environment.

 

Avoiding layoffs or quiet hiring?

 

The WSJ report noted that US-based companies' job cuts reduced by 42 per cent in July compared to June. This is a significant drop as Business Standard earlier reported that tech companies let go of 40 per cent more (226,000 employees) employees in 2023, as of the end of July, compared to 2022. This method may be a way to avoid mass layoffs as corporations restructure themselves.

 

In February 2023, the term "quiet hiring" also began to trend. This referred to companies acquiring new skilled employees without hiring new talent.

 

According to a report by Forbes, this can refer to hiring short-term contractors or assigning additional responsibilities to existing employees that go beyond their job roles. It can also include moving employees to new positions or having them take on different projects internally.

 

This can be beneficial for employers and can lead to stressful situations for employees.

 

Why are companies quiet cutting?

 

Finding new talent can be time-consuming and expensive for organisations. Quiet cutting and quiet hiring allow companies to leverage internal talent to meet immediate requirements. However, this is only possible if employees are also being properly upskilled, coached, and trained for the new roles they are asked to perform.

 

While some companies may be genuine in the reassignments to keep employees onboard and avoid layoffs. Others may be pushing workers into unsuitable roles, prompting them to quit.

 

A way to recognise this may be the form of reassignment. This can include employees being placed in roles that are below their current pay or skill level, offering relocations when it is not feasible for the employee, or being reassigned to a struggling division. The quality of support provided to employees during the reassignment may also make it clearer whether this is a form of quiet hiring or quiet firing.