What ‘Quiet Cutting’ Means and Why It’s Happening at Work

What You’ll Learn: Uncover the answer to the question “what is quiet cutting?” Plus, gain an understanding of how it is manifesting in companies today and its impacts.

Quiet cutting is a workplace practice in which companies reassign employees to lower-value roles. This is often accompanied by reduced pay and may involve unclear responsibilities. Companies are doing it as a cost-saving alternative to layoffs. Although this practice is technically legal, it can be problematic in several ways. For example, it can damage employee morale, mental health, and company trust. 

The forces behind it? There can be several, including economic pressure, organizational shifts, and automation. It reflects some of the bigger changes happening in today’s workplaces in terms of restructuring,and points to the need for  transparent communication between employers and employees.

Imagine it’s a Friday evening at your office, and you’re just about to wrap up your work desk and log off when you see an email. You click on it, expecting it to be one of those regular company-wide emails. Then, you see it’s about a “reassignment of duties.” A few seconds in, and you realize you’ve been moved to a new position with a vague role.

Over the last few years, such unwanted reassignments have become increasingly common in companies. They represent this growing workplace practice called quiet cutting. 

So what is quiet cutting? Why is it drawing attention? How does it affect employees, employers, and the workplace as a whole? Let’s explore this new trending corporate term that’s been raising eyebrows on HR restructuring practices.

Quiet Cutting Meaning and Its Role in Restructuring

Quiet cutting is a corporate practice in which a company reassigns employees to different roles where they are valued and paid less. Although the practice isn’t new, the term “quiet cutting” first appeared in 2023 in The Wall Street Journal, which reported a growing trend of such reassignments in many big companies.

The reassignments sound and feel like demotions, except in this case, they tend to happen on a large scale, similar to layoffs. But unlike in layoffs, employers don’t directly ask employees to leave. Instead, they push them to a less desirable role. This generally leaves them with two options: either accept the downgrade or resign.

Quiet cuts let companies save costs by reducing their employees’ pay. However, the underlying motive is often to (indirectly) encourage employees to leave. If a reassigned employee eventually resigns, the company doesn’t have to pay severance or unemployment . Companies may also use quiet cuts to avoid a reputational dent on the company image. 

HR Restructuring Strategies That Include Quiet Cutting

Quiet cutting isn’t the only way companies manage and restructure their workforce. It’s just one of the many other overlapping HR restructuring strategies that are often aimed at improving organizational productivity and reducing staffing costs.

Here are some of the most common reasons and strategies that can lead to or involve quiet cutting in a company:

1. Performance Management: Sometimes, reassignments may simply be part of a company’s ongoing process of ensuring alignment between skills and roles. Employees whose performance reviews don’t turn out to be up to the mark may face a role downgrade. It may have nothing to do with laying off or cost-cutting.

2. Changing Business Needs: Many times, a company may repivot its business plans and adopt new processes and technologies (such as AI and automation). This may result in a reduced need for human workers. This can also lead to reassignments.

3. Reorganization: Companies often have to undergo reorganization for various purposes, such as improving efficiency, cutting costs or preparing for new goals—or even a mix of such reasons. One of the reorganization steps can include restructuring departments or divisions, which can lead to reassignments. 

4. Employee Turnover Management: One of the most concerning reasons for employees is when their employer reassigns them to a less valuable role and hopes that they will eventually leave.

5. Quiet Firing: Quiet cutting can sometimes also be part of another workplace tactic called Quiet Firing. It happens when an employer intentionally makes work and the working conditions so difficult and unfavorable that an employee is forced to leave.

How Quiet Cutting Affects Employees and Company Culture

The repercussions of downgrading employees to less rewarding roles impact the affected employees. However, it can also extend to the rest of the members and even the company.

Quiet Cutting Effects on Employees

To fully understand this concept, we need to go beyond the question “what is quiet cutting? We need to look at the impacts it can have. Quiet cutting affects both the employees who are directly quietly cut, as well as the employees who witness this happening with their colleagues.

• Quiet cutting can reduce the self-confidence of the affected employees and increase their self-doubt.

• Employees witnessing quiet cutting may start feeling overconscious about their performance, leading to increased stress and anxiety.

• The decrease in compensation can also lead to financial stress. 

• Someone’s profession and job title can make up a large part of their overall identity. In turn, having their title taken away or role changed can negatively affect their overall mental health.

• Reassigned employees often don’t like their new role or have no interest or experience in the required skills. The result is low job satisfaction and engagement.

Quiet Cutting Effects on the Company

Companies may engage in quiet cutting to save costs, although the process itself also has long-term costs. It can be unpleasant, similar to that of layoffs.

• Quiet cutting can erode the loyalty of employees. In fact, four out of five workers who have witnessed or been through the quiet cutting process may lose trust in their company.
• Reassigned employees may become disengaged. Some may even engage in “quiet quitting,” i.e., doing the bare minimum work until they get another job.

• Much like layoffs, quiet cutting can damage the company’s reputation. So much so, in fact, that 75% of workers who have experienced quiet cutting say they wouldn’t recommend their company to friends. What’s more, 28% of workers who have been quietly cut end up leaving negative reviews about their company. 

• While quiet cutting is technically legal, it can eventually bring a company under ethical scrutiny, which can turn into legal issues in some cases.

Related: Hustle Culture vs. Quiet Quitting 

Quiet Cutting Case Studies and Company Examples

In 2023, The Wall Street Journal reported that many big companies, including IBM, Adobe, Adidas and Salesforce, have reassigned employees as part of their corporate restructuring practice between 2022 and 2023. 

Since that first report, many surveys have reaffirmed the growing prevalence of quiet cutting among companies across industries. 

According to a 2024 Monster survey, approximately three out of four employees have witnessed quiet cutting in their workplace, while approximately 58% report being impacted themselves.

Another survey, conducted by Zetwerk, found that entry-level employees made up the largest chunk of quietly cut employees at 53%, followed by mid-level employees at 40%. The survey also included over 400 business owners, with about one in four admitting to having reassigned employees this way. 

The four most common reasons behind quiet cutting, according to these owners, are:

1. Performance management
2. Cost savings
3. Reorganization, and
4. Employee turnover

While these reasons describe why employers resort to the quiet cutting tactic, there are often some larger macro trends at work.

Why Quiet Cutting Reflects Workplace Trends 

Once we understand the answer to the question “what is quiet cutting?” then we can look at the trends surrounding this concept as well. Several factors—ranging from company-wide issues to national and global trends—can impact the way companies handle workforce management. Let’s look at three broad categories that may make companies resort to quiet cutting and related tactics:

Economic Pressure and Uncertainties

Economic uncertainties can put pressure on companies to cut costs. Such uncertainties may be:

• Industry-specific: Reduced demand, funding slowdown, supply chain issues, regulatory changes, etc.

• Large-scale issues: Geopolitical disturbances, recession, inflation, war, etc.

Since layoffs can have bigger ripple effects on reputation and costs, quiet cutting can become the more preferred option to deal with such uncertainties.

Evolving Employee Roles

The global labor market is undergoing major changes. According to Goldman Sachs, generative AI is expected to impact 300 million jobs in the next few decades. But many of the changes are already happening, thanks to AI-powered automation. Companies have already started adopting AI in their business functions—at the cost of human workers.

Organizational Cost Cutting

Sometimes, it may simply be a company-wide issue that leads to quiet cutting. These issues may include poor financial performance, rising competition, a declining product demand or others.

What to Do If You Think You Are Being Quietly Cut

Regardless of the underlying factors, no one wants to be at the receiving end of a tactic like quiet cutting. But if the recent trends are any indication, quiet cutting will likely continue to happen. So if you are an employee reading this, here’s what you can do to identify and deal with this practice in your workplace:

Signs That Your Employer Is Quietly Cutting You:

If you are quietly cut, you will likely receive an email or call about some “reassignment of responsibilities” or something similar. However, some other tactics can also indicate that your employer is trying to force you to quit—before or after a reassignment:

• You are repeatedly left out of important projects and meetings.

• Your manager is trying to micromanage your work, potentially indicating that they don’t trust your skills. 

• Your HR or manager doesn’t want to discuss your professional growth, increment or promotions.

• Your workload has suddenly increased to an unrealistic, unsustainable level, making it difficult for you to meet deadlines and maintain good performance.

What to Do If You Are Being Quietly Cut:

If you suspect that quiet cutting is happening to you, there are a few things that you can do. 

• Clearly communicate with your HR or manager about any change you find objectionable, discouraging, or ill-fitting with your skills.

• If you’ve been reassigned, ask the basis of this decision and what growth opportunities you have in this new role. Get as much clarity as you can to decide your next step.

• If you continue noticing more signs of being sidelined or are convinced that the new role is not in your best interests, stop putting in extra efforts and instead use that energy to find a better job.

• If you want to stay even after the quiet cut, actively and regularly ask for feedback from your manager. Try your best to proactively improve your performance to improve your chances of growth.

Quick Tip: If you see other signs of unfair treatment along with quiet cutting at your workplace, consider consulting an employment lawyer before resigning. Then, you can check if your situation may qualify for a constructive dismissal claim. The lawyer can help you explore your options, including compensation for damages and other benefits. 

Navigating the Future of Work with Awareness and Resilience

If you are an employee reading this article, remember that being quietly cut is not always a consequence of your skills or performance. If you witness this tactic in your workplace or experience it yourself, try to navigate the problem with professionalism and clear communication. While legal action may not always be an option, it can help to consult an employment attorney to understand your options.

If you are a business owner, keep in mind that quiet cutting can have negative ripple effects similar to those of layoffs. Being transparent with your employees is always a necessity to maintain trust and loyalty. It gets more crucial during moments like these. If reassignments are a necessity, make sure to actively communicate with your workforce about the situation and support them in the transition.

Photo by voronaman/Shutterstock

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