What's Happening?
Major corporations such as Verizon and Amazon are implementing large-scale layoffs, reshaping the current job market. In addition to these layoffs, a tactic known as 'quiet firing' is reportedly destabilizing
the American workforce. According to Zety's Layoff Lifeline Report, a significant number of employees have experienced 'quiet firing,' where employers subtly push employees out without formally terminating them. Common tactics include increased workload without additional pay or support, and micromanagement. Furthermore, return-to-office mandates are perceived by 70% of surveyed employees as a method to encourage resignations. Paramount Skydance, an entertainment company, has openly paid $185 million in severance to employees who were given the choice to resign or return to the office full-time. This environment has left employees emotionally drained and stressed as they approach 2026.
Why It's Important?
The prevalence of 'quiet firing' and layoffs has significant implications for the U.S. workforce. Employees are facing increased pressure to remain valuable and 'AI-proof' as roles evolve due to technological advancements. The uncertainty surrounding job security is exacerbated by AI-driven layoffs, leading to heightened anxiety and stress among workers. This situation poses risks to employee morale and productivity, potentially increasing turnover rates. Companies may face challenges in retaining talent and maintaining a stable workforce, which could impact overall business performance. Effective communication from HR and management is crucial to mitigate these risks and help employees navigate changes with greater confidence.
What's Next?
As the workforce enters 2026, employees are bracing for continued instability and uncertainty regarding their careers. HR departments are encouraged to guide leaders and managers to communicate openly and frequently with employees about changes and expectations. By providing clear information, companies can help reduce panic, turnover, and distrust among workers. This proactive approach may alleviate some of the stress associated with layoffs and 'quiet firing,' fostering a more supportive work environment.
