You’ve probably heard of “quiet quitting,” but a new trend is quietly reshaping workplaces: quiet cutting. Instead of laying off employees, organizations are increasingly reassigning workers into different roles—often without a promotion, raise, or even much choice in the matter. While this strategy may help companies avoid severance costs or negative PR tied to layoffs, it raises real concerns for morale, engagement, and retention.
So, what exactly is quiet cutting, and how should HR respond?
What Is Quiet Cutting?
Quiet cutting happens when companies sidestep layoffs by moving employees into different roles – usually ones seen as less critical, less desirable, or less secure. It’s often positioned as “redeployment” or “realignment,” but for employees, it can feel like a demotion or warning sign.
In some cases, the intent is genuinely to retain talent while addressing shifting business needs. In others, it’s a strategy to encourage voluntary resignations, helping companies reduce headcount without formal layoffs.
Why Companies Are Doing It
- Avoiding Layoff Costs: Severance packages, unemployment claims, and reputational damage make layoffs expensive.
- Reskilling Talent: Some organizations hope to retrain workers for new needs without going through a hiring cycle.
- Market Uncertainty: Quiet cutting provides flexibility in uncertain economic times while preserving the option to ramp back up quickly.
Risks HR Leaders Should Watch
- Loss of Trust: Employees who feel sidelined or “pushed out” may disengage or exit.
- Cultural Damage: Quiet cutting can create a culture of fear and instability, undermining retention efforts.
- Legal Concerns: Poor communication around reassignments could lead to claims of constructive dismissal or discrimination.
How HR Can Manage Quiet Cutting Responsibly
- Prioritize Transparency: Communicate clearly about why moves are happening and what support employees can expect.
- Offer Reskilling and Support: If employees are being reassigned, provide training, resources, and clear success pathways.
- Monitor Morale: Regular pulse surveys or manager check-ins can help gauge engagement levels and address frustrations early.
- Treat Reassignments Like Internal Mobility: Frame moves as career development opportunities when possible – not punitive measures.
- Document Decisions: Keep thorough records of how reassignment decisions are made to protect against legal risks.
Quiet cutting may offer short-term flexibility but mishandling it can damage trust and drive talent out the door. HR’s role is to ensure that if this strategy is used, it’s executed thoughtfully, transparently, and with employee wellbeing in mind.