53% of companies are engaging in 'quiet firing' strategies like benefits cuts and increased workloads to avoid formal layoffs, according to a report.
Despite its effectiveness in reducing headcount, 9 in 10 companies implementing quiet firing have experienced reduced morale among employees.
Leaders believe quiet firing tactics help manage underperformers, avoid severance payouts, and reduce legal risks associated with formal layoffs.
Balancing budget constraints and hiring challenges will be crucial for HR departments in 2025, as front-line workers report anxiety and stress due to global trade policy changes.