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Silent layoffs on the rise in India’s Tech industry

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Recently, a five-year veteran software engineer at Accenture in Bangalore, experienced firsthand a method of employee termination that is becoming increasingly prevalent in the Indian tech sector. After being put on a Performance Improvement Plan (PIP), he was soon silently asked to exit the company, albeit after being given full notice period pay.

This is not an isolated incident but a microcosm of a broader strategic shift in not just Accenture, but across the tech industry, as companies look manage their workforce in a volatile market. The traditional, explicit PIP is being replaced by a more insidious, silent process designed to encourage voluntary attrition and minimize corporate risk. This silent PIP is a key component of a new, strategic approach to workforce “optimization.”

Also read: AI Adoption Triggers Tech Layoffs in India and Globally

From a strategic perspective, the silent PIP offers several advantages for corporations like Accenture. Firstly, it mitigates legal exposure. By avoiding a formal, documented PIP process, a company can sidestep potential legal challenges or severance negotiations associated with direct layoffs. The onus is shifted to the employee, who, feeling isolated and undervalued, is more likely to resign on their own, a move officially recorded as voluntary attrition. This strategy keeps layoff numbers off the books and protects the company’s public image.

Secondly, this approach is a cost-cutting measure. Voluntary resignations eliminate the need for severance packages, outplacement services, and other costs associated with involuntary terminations. In an economic climate where every rupee counts, this can represent a significant saving. The process is a slow burn, not an abrupt cut, allowing the company to gradually shed employees and absorb their workloads across the remaining team without a sudden, jarring operational disruption.

Lastly, the silent PIP serves as a form of social engineering. By subtly marginalizing an employee, the company creates a negative work environment for the target individual, making it an unappealing place to stay. This is achieved through a coordinated effort that includes a reduction in meaningful work, a decline in managerial communication, and a subtle isolation from the team. The goal is to make the work environment so uncomfortable that the employee’s departure seems like a personal choice, not a corporate directive.

Media reports and anecdotal evidence from platforms like Reddit confirm that this quiet-layoff strategy is a growing phenomenon, reflecting a more mature and ruthless approach to talent management. As the industry grapples with economic headwinds and increased automation, we can expect this strategic workforce optimization to become a standard practice, forcing employees to be more vigilant about their standing within their organizations, lest they become a silent casualty of a new era of corporate efficiency, one that cannot be found in any official layoff report.

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