The tech industry began to reel after entering a period of layoffs. In 2022, the tech sector saw a sharp rise in layoffs, with major companies such as Amazon, Alphabet, Microsoft, and Meta cutting thousands of jobs. According to Layoff.ly, the trend became even more intense in the year 2023, recording a 59 percent increase in job cuts compared to the previous year, with a total of 262,915 employees laid off across various firms. This wave of layoffs was attributed to a combination of the economic slowdown, overhiring during the pandemic, and strategic restructuring aimed at maintaining financial health. However, despite months of mass layoffs in the tech industry, the sector is showing no signs of job cuts slowing down in 2024.

According to data from Layoffs.fyi, 337 tech companies have laid off 98,834 employees in the first half of this year alone. Companies are constantly focusing on reducing operational costs, leading to further job cuts. While the fear of being fired is already haunting IT employees, a new and more insidious trend is on the rise – silent layoffs.

According to a report by Moneycontrol, this practice is being increasingly used in the Indian IT and IT-enabled services (ITES) sector, which involves pressuring employees to quit without informing them. The All India IT and ITES Employees Union (AITEU) revealed that about 20,000 technology professionals were affected by such unannounced layoffs in 2023, and the actual number is suspected to be even higher.

But what exactly is a silent layoff?

Quiet layoffs often involve giving employees 30 days to find a new job within the company. If a new job is not found, it usually leads to dismissal. According to the AIITEU, this method is widespread and allows companies to quietly reduce their workforce while avoiding public scrutiny and potential backlash.

According to another report by the Nascent Information Technology Employees Senate (NITES), between 2,000 and 3,000 employees were quietly laid off from major Indian IT services companies in the first five months of 2024. “Companies are adopting various methods to lay off employees, and those who resist it are (immediately) fired. Once your relieving letter marks you as ‘terminated’, it becomes very difficult for that person to find another job,” Harpreet Singh Saluja, president of NITES, told Moneycontrol.

Quiet layoffs are not quiet firings

Notably, the concept of silent layoffs is often conflated with quiet dismissals. While both involve pressuring employees to leave, they differ in execution. In silent layoffs, companies typically provide employees with a notice period, giving them time to transition. On the other hand, in quiet dismissals, companies make employees’ roles increasingly undesirable, either by overloading them with tasks, assigning unimportant duties, or giving poor performance reviews. This, in turn, forces the employee to resign.

Nevertheless, silent layoffs also significantly impact employees. Many employees who go through this process are placed on performance improvement plans (PIPs), where they must quickly prove their ability to avoid dismissal. This often leads to stress and job insecurity, especially for those who are unable to secure new roles within the company. According to a report, experienced and higher-paid employees are particularly vulnerable in silent layoffs, as companies target them to reduce costs.

Now as the tech industry grapples with these turbulent times, the growing number of silent layoffs has become a major challenge for employees. While companies may consider these strategies necessary for survival, the impact on employees and their careers cannot be underestimated. As the year progresses, it remains to be seen how the tech industry will address these issues and what measures will be taken to support their employees during such challenging times.