Some companies are implementing return-to-office (RTO) mandates, adjusting compensation packages, and intensifying performance reviews not to enhance productivity, but to encourage certain employees to resign voluntarily. This tactic, often called "quiet cutting," allows firms to reduce headcount without formal layoffs, minimizing severance costs and public backlash.
RTO as a Strategic Tool
Recent data from BambooHR shows that 25% of executives and 18% of HR professionals admitted their companies hoped RTO policies would lead to voluntary turnover. For example, Dell Technologies introduced a strict RTO policy requiring office attendance three days a week, alongside tracking employee badge swipes and VPN usage. Employees who couldn't comply, such as those hired remotely or living far from offices, were pushed toward resignation. Similarly, Amazon's mandate for a five-day office return sparked internal discontent, with some employees suspecting it was designed to thin out the workforce.
Performance Reviews and Pay Adjustments
Companies are also leveraging performance evaluations and compensation changes to nudge employees out. At Meta, a new policy ties performance ratings directly to bonuses, with lower ratings resulting in reduced or no bonuses, potentially prompting underperformers to leave. Amazon's "Pivot Plan" places underperforming employees on strict performance improvement plans, with only 16% meeting the criteria to stay, effectively encouraging exits. Meanwhile, some firms are cutting pay for remote workers or offering minimal raises to low performers, further incentivizing resignations.
Why Companies Are Doing This
Economic uncertainty and over-hiring during the pandemic have left many organizations with bloated payrolls. Layoffs, while effective, come with financial and reputational costs. By creating less favorable work conditions—through rigid RTO rules, tougher performance metrics, or reduced pay—companies can achieve workforce reductions discreetly. A ResumeBuilder survey found that 68% of managers have intentionally given low performance scores to push employees out, confirming the prevalence of these strategies.
Employee Impact and Pushback
These policies disproportionately affect remote workers, long-distance commuters, and those unable to meet stringent in-office requirements. Employees are responding with resistance, such as forming petitions (as seen at Amazon) or quietly disengaging through "quiet quitting." However, the power dynamic favors employers in a softening job market, where workers may feel compelled to comply or risk unemployment.
Looking Ahead
As companies refine these tactics, employees face a challenging landscape. Policies framed as performance-driven or culture-building may, in reality, serve as tools to streamline costs. Workers navigating these environments must weigh compliance against seeking employers with more flexible, transparent practices.