You’ve Heard of Quiet Quitting. Now Companies Are Quiet Cutting.
Layoffs are down, but employers are still finding ways to cut jobs
Layoffs are down, but employers are still finding ways to cut jobs
Workers are waking up to emails and team-meeting requests with a jarring message: They aren’t fired, but their jobs are gone.
People on the receiving end of these memos describe running through a range of emotions, from relief that they’re still employed to a sense of dread that their bosses secretly want them to leave. They are also facing a labor market that isn’t as robust as a year ago, leaving many to believe that the best option is to stay put and hunt internally for a better fit.
Adidas, Adobe, IBM and Salesforce, among others, have reassigned employees as part of corporate restructurings. Mentions of reassignment, or similar terms, during company earnings calls more than tripled between last August and this month, according to data from AlphaSense, a financial-research platform.
“Reassigning is definitely a huge part of the dynamic right now,” said Andy Challenger, senior vice president at Challenger, Gray & Christmas, an outplacement firm.
For companies that spent several years—and significant money—to hire top talent, reassigning workers to new roles can be a way to fill jobs vital to future plans while trimming costs associated with old strategies, say human-resources executives.
It can also be a waiting game. Employees to whom it would be costly to pay severance or months of unemployment benefits might decide to leave on their own if they feel stuck in a job they don’t want, executive coaches say.
U.S.-based companies announced 42% fewer job cuts in July than they did in June, Challenger said. July job cuts were also 8% lower than the prior-year period, marking the first time this year that monthly job cuts were lower than in 2022.
In interviews and online forums, many workers said they worried whether their reassignment meant they would eventually be pushed out the door. They also wondered how to work their way out of job purgatory and back into a position they actually want.
“I got the sense that it was like: ‘We appreciate everything you did so we didn’t lay you off, so you can either make the best of this or go find another job somewhere else,’ ” said Matt Conrad, a 34-year-old senior sales-enablement specialist at IBM who went through two reassignments in two years before landing his current role last fall.
In Conrad’s first reassignment in 2021, a manager scheduled a call to notify him that his manager role was eliminated. He was given a new job selling software he had no experience with, a move he said took a toll on his mental health.
Later that year, Conrad found a new job at IBM through a former manager that was better suited to his skill set. Then, in January 2022, that team was eliminated and he was reassigned again. Conrad asked the HR department to help him to find his remote, senior sales-coach role, a process that took six months.
Not quitting when he was reassigned was a matter of principle, he said: “I wouldn’t give in because I was a top performer and it just wasn’t fair.”
IBM didn’t respond to requests for comment.
Getting caught up in a reorganisation can create anxiety for workers, but it’s sometimes a genuine move on the company’s part to avoid letting people go, said Roberta Matuson, an executive coach and adviser to businesses including General Motors and Microsoft on human-resources issues.
“They’re basically signalling to you: ‘Look, this is the only way for me to have a job here for you, I need to reassign you, so wink, wink, if I were you, I would take the assignment,’ ” she said.
Other times, workers are purposefully pushed into jobs management knows they will be miserable in, prompting them to quit.
“They could be putting you out to pasture,” Matuson said.
Signals to look for include reassignment to a job that is far below the pay or skill level you currently have, Matuson said. Other warning signs: Being offered a role that requires relocating when your boss knows moving isn’t a viable option for you, or being reassigned to a division that’s rumoured to be on the chopping block.
Employees suspicious or nervous about a reassignment should ask their managers why, specifically, it’s happening and what the reassignment means for their career path, said Naomi Sutherland, a global lead of talent development with Korn Ferry, a consulting firm. The answers could reveal whether a job transfer is personal.
Without good information, “people are going to fill a void of information with whatever story they’re going to tell themselves,” she said.
Most of the time, there is little legal recourse for workers if their company reassigns them, employment lawyers say.
One exception is when a worker can demonstrate the reassignment was retaliatory, said Angela L. Walker, an employment attorney with Blanchard & Walker in Ann Arbor, Mich. The bar is high, she added. The employee would have to show prior evidence of discriminatory treatment or that they were unfairly singled out.
“I’ve seen lots of examples in my practice where employees are told they’re being let go in a ‘restructuring’ and it turns out that they’re the only one affected, or they’re the only one affected in their group,” Walker said.
Grant Gurewitz, 32, said it took time to adjust to a new role in Seattle earlier this year when his software company eliminated his position as head of growth marketing for employee experience in North America. He was given 24 hours to make a choice between two other jobs, or leave. He picked a global head of growth marketing role that came with more responsibilities but without a pay increase.
He chose to look on the bright side, because a global role probably would’ve been the next position he wanted and it builds on his existing skill set.
“There’s still a lot of runway for me to learn and grow and develop in this role, which is the glass-half-full approach to all of this that’s happened,” he said.
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The pandemic-fuelled love affair with casual footwear is fading, with Bank of America warning the downturn shows no sign of easing.
The pandemic-fuelled love affair with casual footwear is fading, with Bank of America warning the downturn shows no sign of easing.
The boom in casual footware ushered in by the pandemic has ended, a potential problem for companies such as Adidas that benefited from the shift to less formal clothing, Bank of America says.
The casual footwear business has been on the ropes since mid-2023 as people began returning to office.
Analyst Thierry Cota wrote that while most downcycles have lasted one to two years over the past two decades or so, the current one is different.
It “shows no sign of abating” and there is “no turning point in sight,” he said.
Adidas and Nike alone account for almost 60% of revenue in the casual footwear industry, Cota estimated, so the sector’s slower growth could be especially painful for them as opposed to brands that have a stronger performance-shoe segment. Adidas may just have it worse than Nike.
Cota downgraded Adidas stock to Underperform from Buy on Tuesday and slashed his target for the stock price to €160 (about $187) from €213. He doesn’t have a rating for Nike stock.
Shares of Adidas listed on the German stock exchange fell 4.5% Tuesday to €162.25. Nike stock was down 1.2%.
Adidas didn’t immediately respond to a request for comment.
Cota sees trouble for Adidas both in the short and long term.
Adidas’ lifestyle segment, which includes the Gazelles and Sambas brands, has been one of the company’s fastest-growing business, but there are signs growth is waning.
Lifestyle sales increased at a 10% annual pace in Adidas’ third quarter, down from 13% in the second quarter.
The analyst now predicts Adidas’ organic sales will grow by a 5% annual rate starting in 2027, down from his prior forecast of 7.5%.
The slower revenue growth will likewise weigh on profitability, Cota said, predicting that margins on earnings before interest and taxes will decline back toward the company’s long-term average after several quarters of outperforming. That could result in a cut to earnings per share.
Adidas stock had a rough 2025. Shares shed 33% in the past 12 months, weighed down by investor concerns over how tariffs, slowing demand, and increased competition would affect revenue growth.
Nike stock fell 9% throughout the period, reflecting both the company’s struggles with demand and optimism over a turnaround plan CEO Elliott Hill rolled out in late 2024.
Investors’ confidence has faded following Nike’s December earnings report, which suggested that a sustained recovery is still several quarters away. Just how many remains anyone’s guess.
But if Adidas’ challenges continue, as Cota believes they will, it could open up some space for Nike to claw back any market share it lost to its rival.
Investors should keep in mind, however, that the field has grown increasingly crowded in the past five years. Upstarts such as On Holding and Hoka also present a formidable challenge to the sector’s legacy brands.
Shares of On and Deckers Outdoor , Hoka’s parent company, fell 11% and 48%, respectively, in 2025, but analysts are upbeat about both companies’ fundamentals as the new year begins.
The battle of the sneakers is just getting started.
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