The technology industry started to jump after entering the silent layoffs zone. The tech industry had a substantial rise in layoffs in 2022, with thousands of jobs being eliminated by big names including Microsoft, Amazon, Alphabet, and Meta. The trend continued in 2023, with 59 percent more job losses than the year before, or 262,915 individuals fired from a variety of companies, according to Layoff.ly. A number of factors, including economic downturns, overhiring during the epidemic, and strategic restructuring intended to preserve financial stability, were blamed for this wave of layoffs. But even though the tech sector has been experiencing significant layoffs for months, there are no indications that employment losses will ease down in 2024.
A shocking 98,834 employees have already been let go by 337 tech companies in the first half of this year alone, according to statistics from Layoffs.fyi. Businesses continue to prioritize cutting operational expenses, which results in additional job losses. IT workers are already under stress from the threat of losing their jobs, but a new, more pernicious trend is emerging: silent layoffs.
In an article published by Moneycontrol, it is stated that the Indian IT and IT-enabled services (ITeS) industry is using this tactic more frequently. It entails gently pressing workers to quit without disclosing their reasons. About 20,000 IT personnel were impacted by such unexpected layoffs in 2023, according to the All India IT & ITeS Employees’ Union (AIITEU), with the real figure likely to be much higher.
But what exactly are the silent layoffs?
When a person is laid off silently, they are frequently given a 30-day window to pursue another job inside the firm. Usually, the outcome of failing to find a new position is termination. According to AIITEU, this strategy is popular and enables businesses to cut their employment covertly, avoiding criticism from the public and possible reaction.
A quiet termination is not a silent layoff
Interestingly, quiet termination and layoffs are sometimes confused. Although they both entail forcing workers to quit, their methods are different. Companies usually give workers a notice period before silent layoffs so they have time to adjust. Conversely, with quiet dismissal, employers gradually dehumanize their workforce by giving them menial assignments, offering them excessive workloads, or providing them subpar performance evaluations. This ultimately forces the worker to quit.
However, employees are also greatly impacted by silent layoffs. After going through this procedure, a lot of employees are put on performance improvement plans, or PIPs, where they have to show their worthiness right away in order to stay on the job. Stress and job insecurity result from this frequently, especially for individuals who are unable to find new positions inside the organization. A research claims that because corporations target experienced and higher-paid workers to cut expenses, they are especially prone to silent layoffs.
The growth in silent layoffs is becoming a big problem for workers as the tech industry navigates these unsettling times. The impact these initiatives have on people and their careers cannot be overstated, even if firms may see them as essential to their existence. It will be interesting to watch how the tech sector responds to these problems as the year goes on and what steps it takes to help its employees through these trying times.
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