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Quiet Cutting: The Hidden Workforce Strategy That Could Cost You Top Talent

Why Silent Reassignments Are Undermining Trust, and What Employers Should Do Instead

As economic uncertainty lingers and businesses seek cost-saving solutions, a growing number of employers are turning to a subtler, and more controversial , strategy: quiet cutting. Instead of initiating formal layoffs, some organisations are reassigning employees to less desirable or lower-impact roles, often without meaningful consultation.

“On the surface, it looks like redeployment,” says Rachel Collar, Founder of Haus of HR. “But in reality, quiet cutting often leaves employees confused, demoralised and ultimately looking for the exit.”

The Hidden Cost of a Quiet Strategy

This tactic, recently spotlighted in a CIPD report, is gaining traction in industries undergoing rapid change, especially those impacted by digital transformation, AI and automation. While it may seem like a way to avoid the financial and reputational cost of redundancies, the long-term risks can far outweigh the short-term savings.

Rachel explains:

“What may seem like a low-risk, internal shuffle can quickly spiral into distrust, disengagement and talent loss.”

Here’s why quiet cutting could backfire:

  • Loss of Trust: Employees can sense when progression is replaced with vague ‘reassignments’. The result? Low morale and reduced psychological safety.
  • Increased Turnover: When staff are moved into roles they never applied for – especially those with less visibility or fewer development opportunities – disengagement and resignations follow.
  • Reputation Damage: Today’s employees talk. Negative experiences are shared publicly on platforms like Glassdoor and LinkedIn, damaging your employer brand.

What Should Employers Do Instead?

Rachel is clear:

“Transparency is key. Change is sometimes necessary – but how you manage that change determines whether you lose your people or win their loyalty.”

At Haus of HR, we advise businesses to take a more ethical and strategic approach to organisational change:

✅ Review Role Changes Strategically

Ensure any reassignments are aligned with clear business needs and employee development. Avoid reshuffles that feel like quiet exits.

✅ Consult Before You Move

Involve employees in the process. Ask about their career goals, strengths and preferences. Reassignment should be collaborative, not punitive.

✅ Provide Real Support

Offer training, mentoring, and resources for employees moving into new roles. Make internal mobility a positive step forward.

✅ Monitor Morale

Use engagement tools like pulse surveys to spot early signs of dissatisfaction. Listening is your first line of defence.

A Better Way to Restructure

Restructuring doesn’t have to erode trust or trigger an exodus of talent. With a transparent, people-first approach, businesses can navigate change while preserving – and even strengthening – team loyalty.

“Change is inevitable,” Rachel concludes. “But when handled with care, it can become a catalyst for growth – not a cause for regret.”

Need guidance on ethical restructuring, redeployment strategies or employee engagement? Haus of HR is offering a free HR consultation to support organisations through change with confidence and care.

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