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Workforce Reduction

What is quiet firing – and is big tech doing it?

January 13, 2025

Workforce Reduction

What is quiet firing – and is big tech doing it?

January 13, 2025

Photo by Lowie Vanhoutte on Unsplash

Quiet firing is a term coined to describe the process of managers subtly yet intentionally creating a negative work environment, with the aim of pushing employees to leave. It’s a way to make workforce cuts without any formal dismissal processes.

A better phrase to use for this is ‘stealth layoffs’, says Emily Rose McRae, senior director analyst at Gartner, as the goal is usually to get a large group of employees to leave en masse, rather than a specific individual.

“The term firing feels targeted, while the phrase stealth layoffs is much broader, and that’s how these tactics are used,” she says.

Why is quiet firing becoming more common?

The concept of quiet firing, or stealth layoffs, is not necessarily a new phenomenon, but it’s something we’re seeing more of at scale post-Covid says Claire Taylor-Evans, an employment partner at law firm Boyes Turner.

It may be used by an organization when it’s pivoted away from a specific sector or region, but wants to avoid announcing layoffs, or simply to “separate the wheat from the chaff,” she says.

“Why now? First off there’s a productivity and growth problem in the UK. You could take the view that employers are using these tactics – introducing higher performance targets, more in-office hours, firmer management – on the basis that if you can’t take the heat, get out of the kitchen,” she says.

You’ve also got a swathe of employment law changing bringing in new employee protections, such as day one protection from unfair dismissal and removing the previous two-year qualifying period, she notes.

“Employers know how exposed they are to claims so will cynically seek to squeeze individuals out in more nuanced, passive-aggressive, and ultimately damaging ways. Ultimately employers use quiet firing to avoid legal repercussions and dismissal claims.”

Companies making headlines

Several big tech firms have been making headlines in recent years for their perceived quiet firing. Back in 2022, Meta was accused of covertly reducing staff under the guise of reorganizing departments, while in 2024 a senior AWS developer accused the firm of quiet firing. Since then, Amazon has announced a new five days in office requirement, which has compounded accusations.

A recent study showed that return to office (RTO) mandates are being used as a key way to push employees to leave. A survey by BambooHR found that as many as a quarter of VP and C-suite executives hope harsher mandates will mean that a percentage of staff quit.

Pros and cons of quiet firing

Big tech companies may choose quiet firing or stealth layoffs as a strategy to reduce staff spending and avoid severance pay-out costs. If managed well, it can help maintain investor confidence and keep stock prices up.

Unsurprisingly, there are also major downsides to quiet firing including a loss of trust in leadership and lower morale, which can lead to reduced productivity. Furthermore, this broad-brush approach to lowering headcount means an organization has little control over who leaves and could lead to a potential brain drain of key talent.

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Read full article here

Pushing employees to quit can cut costs in the short term but also accelerate employee brain drain.
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