A Study on Quiet Layoffs and Their Impact on Psychological Safety in Organisations
Author : Naja Nazeer
Abstract :
In recent years, the phenomenon of quiet layoffs—a subtle form of workforce reduction where employees are gradually marginalized, denied growth opportunities, or encouraged to resign without formal termination—has emerged as a silent crisis within organizations. Unlike traditional layoffs, quiet layoffs operate under the guise of organizational restructuring or performance management, leaving employees in a state of uncertainty and emotional distress. This study explores the humanitarian dimensions of quiet layoffs and their profound impact on psychological safety within workplace environments. Psychological safety, defined as the belief that one can express ideas, raise concerns, or make mistakes without fear of punishment or humiliation, is a cornerstone of healthy organizational culture. When employees experience quiet layoffs, trust erodes, communication weakens, and fear replaces openness, leading to long-term consequences such as decreased morale, anxiety, and disengagement. Through a human-centered lens, this research emphasizes the lived experiences of employees and the ethical responsibilities of employers in fostering transparent and compassionate organizational practices. The study further highlights how leaders’ silence during such transitions exacerbates emotional insecurity and undermines collective well-being. In the humanitarian context, quiet layoffs are not merely a management strategy but a moral concern that calls for empathy, dialogue, and accountability. By understanding their psychological impact, organizations can shift from silent disengagement to inclusive decision-making that values human dignity. Ultimately, this paper advocates for a more humane organizational culture—one that safeguards psychological safety even in times of structural change.
Keywords :
Quiet layoffs, Psychological safety, Workplace well-being, Organizational ethics, Employee dignity, Silent disengagement, Emotional impact, Organizational culture, Transparency.