The rules of terminating employees in the workforce have changed.
In a post-“quiet quitting” workforce, employers are resorting to “silent layoffs” and “quiet firing,” according to Business Insider.
Companies are providing staff with severance packages but asking that they remain quiet about leaving: “silent layoffs.”
In making job roles less appealing, bosses are motivating employees to “quietly quit.”
Both trends are liable to create PR disasters and ruin company morale, experts warn.
A high-profile example was in the United Kingdom when PwC, an accounting firm, began a voluntary severance program in early 2024 and asked employees to remain quiet about receiving settlements.
“Through limited targeted voluntary severance, we can continue to recruit at entry level and where different skills are needed,” a statement from PwC said.
Psychotherapist Eloise Skinner said that silent layoffs are intended to minimize negativity toward the company. She told Business Insider the trend can be successful, if word does not get out.
“Theoretically, by keeping layoffs relatively low-profile, trust in the business — from stakeholders and existing employees — can be retained, and restructurings can happen without excessive external analysis,” Skinner said.
If news is leaked, however, trust in the company is broken for remaining employees and the public.
The National Labor Relations Act prohibits silent layoffs in the United States since February 2023. Enforced by the National Labor Relations Board, American businesses must comply. However, quiet firing is not illegal.
“Subtly encouraging someone to leave is seen as the easier option,” employment law partner Suzanne Horne, who works at Paul Hasting, told the BBC in 2022. “If the employee eventually resigns, it’s the ‘no-fault approach’: severance doesn’t need to be paid, conflict is avoided and both parties are ultimately happy.”
Business Insider learned from experts that firing employees quietly in the U.S. can backfire when employees choose to fight back by speaking out about what happened to them.
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Rebecca Barnabi
