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Intermediate Positions Become Target Of A New Tactic By Companies To Avoid Paying Indemnities By Forcing Employees To Resign Without Having To Fire Them Formally.
After the wave of silent layoffs, where employees were practically ignored until they left on their own, companies are now betting on a new strategy: “forced ostracism”. This movement is a passive-aggressive way of reallocating them to uncomfortable positions, eliminating roles and pressuring them to leave on their own, without having to be officially fired.
In recent years, the labor market has undergone radical changes. Companies that previously hired en masse during the pandemic have started to reverse the trend with equally large layoffs. However, instead of continuing this cycle, some have adopted more subtle tactics to cut costs and avoid the consequences of a traditional layoff.
Number Of Layoffs In Large Technology Companies Increases
Recent data shows that in the first half of 2023, the number of layoffs in large technology companies was significant, with over 312,000 employees being dismissed. However, starting in May, this trend began to decrease. With only 6,900 layoffs recorded in the summer (northern hemisphere) of 2023, companies began to seek alternative methods to downsize their teams without increasing formal layoff numbers.
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Brazilian city gains industrial hub for 85 companies that is equivalent to 55 football fields.
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Peugeot and Citroën factory in Argentina cuts production by half and opens a layoff program for more than 2,000 employees after Brazil drastically reduced purchases of Argentine vehicles.
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A Brazilian city gains a factory worth R$ 300 million with the capacity to process 200 thousand tons of wheat per year, a mill of 660 tons/day, silos for 42 thousand tons, and an industrial area of 276 thousand m².
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Havan will leave the shopping mall in Blumenau to inaugurate something that the chain has never done before: a megastore in half-timbered style in the Historic Center of the city, which is expected to be completed in May and change the landscape of local retail.
Concept Of “Forced Ostracism”
This brings us to the concept of “forced ostracism”. Instead of simply firing, companies reassign employees, especially those in intermediate positions, to areas or roles in which they have no experience or interest. The idea is clear: to create such an uncomfortable environment that the employee decides to quit, thereby avoiding the payment of indemnities.
The most affected sector by this strategy is that of intermediate positions, those who earn more than average and have fewer direct responsibilities over people management. These professionals are often moved to departments that have little to do with their skills, a clear sign that they are being “pushed” out of the company.
Employees Need To Continuously Reallocate To Avoid Layoffs
An example of this is Matt Conrad, who worked in sales at IBM and was reassigned twice in just two years. First, he was transferred to sell software about which he knew nothing, affecting his mental health. Then, he was moved again to a role more aligned with his original job, only to be transferred again six months later when his new team was eliminated. He refused to resign, even when pushed into a dead end.
“They Are Basically Saying: ‘Look, This Is The Only Way For You To Have A Job Here, I Need To Transfer You. If I Were You, I Would Accept The Task’”
Roberta Matuson, an executive consultant, commented on this practice in The Wall Street Journal: “They are basically saying: ‘Look, this is the only way for you to have a job here, I need to transfer you. If I were you, I would accept the task’.” This type of pressure leaves employees with few options: either they accept the ostracism and stay at the company, or they resign on their own.
“Forced ostracism” is becoming a common strategy for companies looking to avoid the financial and legal repercussions of a traditional layoff. For workers, this means an increasingly uncertain scenario, where job stability is replaced by a constant sense of instability and uncertainty.
Companies Are Always Looking For More “Unusual” Ways To Manage Their Employees
This new trend makes it clear that the corporate environment is in constant evolution, and that companies are always looking for more “creative” ways to manage their teams, even if it means putting their employees in extremely uncomfortable and stressful situations, in the hope that they will ask to leave on their own.
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