"Proponents of the argument that return-to-office mandates are a kind of layoff-in-disguise notched a grim win this week. Business leaders from across the country told the Federal Reserve's Beige Book that their RTO policies had "encouraged" a reduction in their workforces via attrition, rather leaders having to resort to layoffs. The remark came ahead of a starkly weak jobs report from the Bureau of Labor Statistics that showed 22,000 net jobs added in August, where white-collar job losses were offset by gains in health care."
"As businesses prepare for weaker consumer demand and higher levels of economic uncertainty, and the cooling labor market appears to confirm something that some observers have long suspected about the RTO push: Ordering workers to come in to the office is, in part, a way of asking them to leave the company altogether. As Business Insider's Aki Ito observed, employees who choose to quit in response to an RTO mandate (or any other reason) are generally not eligible to collect the severance"
US employers are hiring fewer workers and are using return-to-office (RTO) mandates to encourage attrition, reducing staff without formal layoffs or severance. The Federal Reserve's Beige Book recorded business leaders saying RTO policies "encouraged" workforce reductions via attrition. Recent Bureau of Labor Statistics data showed only 22,000 net jobs added in August, with white-collar losses offset by healthcare gains. Business leaders cited AI and automation as factors allowing operations with fewer workers. Office foot traffic rose in July and over half of Fortune 100 companies require full-time office presence. Employees who quit due to RTO typically forfeit severance and health benefits.
Read at Business Insider
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