Tax Change Drives 500,000 Tech Layoffs Since 2023

The practice known as 'quiet cutting' involves employers reassigning workers to less desirable roles or diminishing their responsibilities to encourage them to quit without formal layoffs, often leaving employees confused and unsupported. While some experts argue that 'quiet cutting' is largely an urban legend with little evidence of widespread occurrence, many workers report experiences of subtle exclusion, diminished roles, and lack of feedback that negatively impact their mental health and career growth. This trend, which is sometimes a tactic to avoid legal or severance issues, has led to emotional burnout and self-doubt among employees, particularly affecting vulnerable groups like women. Meanwhile, a separate but significant driver of recent tech layoffs is a 2017 tax law change under President Trump that ended the immediate full deduction of R&D expenses, forcing companies to amortize these costs over several years and contributing to over 500,000 job cuts in the tech sector since 2023. Despite the quiet nature of these layoffs and workplace shifts, organizations and advocacy groups emphasize the importance of recognizing and addressing these subtle forms of workplace disengagement and the broader impacts on employee well-being.