Quiet Quitting in the United States

Giving Strict Performance Reviews and Reducing Remote Work
Requests to Relocate After Office Closures
US Companies Actively Encouraging Employees' 'Voluntary Resignation'

'Low performance reviews, increased office attendance, relocation of workplaces, ...'.

Among American companies, a 'silent restructuring' is in full swing. Due to worsening macroeconomic conditions, many companies directly notify employees of layoffs, but an increasing number of companies are using various methods such as giving low performance ratings, cutting bonuses, and relocating workplaces to induce voluntary resignations.

According to the Wall Street Journal (WSJ) on the 26th (local time), Meta Platforms, the parent company of Facebook, recently evaluated employees' work performance and gave thousands of employees a 'below standard' rating. Meta's management expects some employees to leave the company within weeks due to this performance evaluation. Meta is also pursuing bonus cuts for low performers based on its goal-oriented culture.

Another method to induce employee resignations is reducing remote work. Some companies that adopted remote work during the COVID-19 pandemic are now ordering employees to return to the office. Walt Disney requires employees to come to the office four days a week starting in March, and Amazon requires at least three days a week starting in May. Employees accustomed to remote work are reluctant to return to the office, and some of them are expected to resign. Analysts say this is essentially what companies aiming to cut costs desire.

Walmart, the largest private employer in the United States, plans to close some offices entirely. The company announced plans to shut down three of its U.S. technology hubs and informed hundreds of employees that to keep their jobs, they must relocate to places like Arkansas or California. Employees who find it difficult to relocate are expected to proceed with resignation. Technical staff have been instructed to come to the office at least two days a week. Walmart stated, "Most employees will be reassigned due to these office closures, and some employees will be able to work as full-time workers," adding, "Those who resign will receive severance pay."

[Image source=Yonhap News]

Regarding these moves, some criticize that American companies are laying off employees in a 'hands-off' manner. Sevin Yeltekin, dean of the Simon Business School at the University of Rochester, pointed out, "They don't call it a layoff, but it's essentially the same as a layoff." Harry Kramer, a professor at Northwestern University's Kellogg School who served as CEO of the American pharmaceutical company Baxter International, said, "Recent corporate decisions are shallow attempts to reduce staff according to economic changes," and added, "Companies are reluctant to admit that they hired too quickly during the pandemic or that recent growth forecasts were inaccurate."

The current U.S. labor market is experiencing severe mismatches, with one side complaining about labor shortages while the other is undergoing restructuring. The unemployment rate in January was 3.4%, a historic low, but separately, many companies are pursuing cost-cutting and management efficiency. In the big tech industry, employee restructuring is actively underway. Companies are downsizing in preparation for a possible recession.

Roberta Mattuson, a corporate human resources expert, said, "Companies have long had ways to push employees out without giving layoff notices," "In addition to team reorganization and assigning new projects, they can encourage employees to look for other jobs by having them report to new supervisors."