Great Lakes Wire

You’ve probably heard of “quiet quitting,” but a new trend is reshaping workplaces: quiet cutting. Instead of laying off employees, organizations are increasingly reassigning workers into different roles—often without a promotion, raise, or much choice in the matter. While this strategy may help companies avoid severance costs or negative PR tied to layoffs, it raises concerns for morale, engagement, and retention.

Quiet cutting occurs 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.

Reasons behind this trend include avoiding layoff costs such as severance packages and unemployment claims. Some organizations hope to retrain workers for new needs without going through a hiring cycle. Quiet cutting provides flexibility in uncertain economic times while preserving the option to ramp back up quickly.

However, HR leaders should be aware of potential risks like loss of trust among employees who feel sidelined or pushed out. Quiet cutting can create a culture of fear and instability that undermines retention efforts. Poor communication around reassignments could lead to claims of constructive dismissal or discrimination.

To manage quiet cutting responsibly, HR should prioritize transparency by communicating clearly about why moves are happening and what support employees can expect. Offering reskilling and support is crucial if employees are being reassigned; providing training resources and clear success pathways is essential. Monitoring morale through regular pulse surveys or manager check-ins can help gauge engagement levels and address frustrations early on.

Reassignments should be treated like internal mobility opportunities rather than punitive measures whenever possible. Documenting decisions thoroughly helps protect against legal risks.

Quiet cutting may offer short-term flexibility but mishandling it can damage trust and drive talent away from the organization. HR’s role is to ensure that if this strategy is used at all—it’s executed thoughtfully with employee wellbeing in mind.

By Heather Nezich courtesy of SBAM-approved partner ASE