Silent layoffs are a major workplace trend that we will see in 2025. Imagine quiet termination but with a more secretive twist.
Silent layoffs occur when employers offer employees voluntary severance packages on the condition that they keep their departure details completely confidential. In order to minimize the impact, the layoffs can be significant. They are primarily used to avoid reputational damage, morale problems, anxiety about redundancy, and brand confidence loss that can often accompany large-scale redundancy rounds.
Why is there a rise of silent layoffs in recent years?
This year, we’ve seen many big tech companies announce a number of layoffs. The main reasons given were restructured organisation, strategy and performance. It’s not new for a company to undergo a restructure in order to streamline, refocus and reshape its business, particularly when the market is tough. Layoffs are also on the rise as companies continue to recalibrate their post-pandemic strategies, return-to office plans and demand normalises.
Silent layoffs are unique in that they combine a simple voluntary redundancy program with a request to the employee not to disclose the details of their departure.
Some settlement agreements include scripts that support the departure. The redundancies that are announced are kept secret to reduce the anxiety and uncertainty they will inevitably create.
Silent layoffs: What you need to know
No organisation wants their restructure to be a case of’restructuring gone wrong’. Employee WhatsApp groups, workplace trends like loud quitting (where employees share their dissatisfaction publicly with their employer) and other communication tools are forcing organisations to work overtime in order to control how employees communicate their exit.
Silent layoffs are a bad idea for many reasons. A leaked email, or a screenshot, exposes the organisation to greater risks.
The biggest threat to any organisation, ethics aside, is when planned layoffs become public. You can include’reasons to leave’ in an agreement for settlement, but other colleagues will soon put the two together.
The employee could also reject the offer and approach. If this leads to compulsory redundancy, your company could use the conversation against you in a possible claim. This can be a risky situation, especially if an employee claims they were selected for redundancy because of their protected characteristics – such as age, race, or sexual orientation.
Silent layoffs: How to opt out
A silent layoff in a relationship is a big red flag. This immediately indicates a lack in trust, disrespect and a need to control the narrative.
While opting out from silent layoffs will require a long-term cultural shift, HR can still take steps to minimize the impact of downsizing on the remaining employees, their reputation, and their leadership’s trust.
Open and transparent communication with employees is a priority
Instead of making silent cuts to your staff, cultivate a culture that is open. Keep your employees informed about company performance, organizational strategy and market challenges.
This is the time to get your team on board with your new direction. You can boost morale, productivity, and engagement by bringing your team on board.
Silent layoffs are often the result of avoiding staff panic or disconnect. Giving your employees a sense that they have control over and ownership over your organization’s success in the future is a great way to combat this.
Continue to invest in the development of employees and their support
To foster morale and trust among affected employees, organisations must continue to offer clear support systems. These services could include career coaching, mentoring and networking advice as well as job-hunting tips and outplacement. All these services help employees move confidently into their next job and demonstrate goodwill.
Compassion over Silence
The division between leaders, people and ‘us’ and ‘them’ can cause a permanent split in an organization when it comes to restructuring or reorganisation.
HR’s job is to close the gap between employees and employers, while keeping office doors open. Senior management teams should be discouraged from having unannounced side-room and boardroom conversations that can create an atmosphere of distrust.
A conversation in person is far more effective than an email. It’s ultimately what separates a resentful employee from a loyal employer.
Do not stoop
Companies with a healthy work culture, which places a high priority on engagement and transparency, should be able overcome the challenges that come from large-scale layoffs. There is no need for silenced layoffs with open communication, honest discussions and compassionate leadership.
