Companies adopt stealth firing to cut costs but risk long-term damage to culture and morale

Companies are increasingly using "stealth firing" to reduce staff quietly by dismissing employees for minor infractions. This approach aims to avoid public backlash but can damage company culture and employee morale. Recent examples include Meta and EY, which dismissed employees for minor offenses. Experts warn that this tactic can create an environment of anxiety and mistrust, leading to lower productivity and higher turnover. The trend follows previous methods like "quiet firing" and "silent layoffs." Experts emphasize the importance of honest communication about performance, as stealth firings can harm a company's reputation and lead to potential legal issues.