Silent firing and resignation agencies: How power plays and worker autonomy are redefining work

Across industries new workplace tactics reflect a simmering tension over control. In US workplaces the concept of “silent firing” is gaining momentum, where companies make jobs increasingly inhospitable in the hope that employees will quit on their own. Meanwhile Japan is witnessing the rise of resignation agencies, services that empower workers to resign without confrontation, often in response to entrenched cultural expectations of loyalty. These trends, though emerging independently, expose a global shift: employees are reclaiming agency in a market where AI pressures, generational priorities and company loyalty norms collide while businesses are using their power to nudge employees out to cut costs.

What is silent firing?

Silent firing is a strategy used by companies to encourage voluntary resignations without formally laying off employees. This tactic involves creating difficult work conditions - like enforcing long office hours or instituting strict in-office mandates - that prompt employees to leave on their own. By avoiding formal terminations companies sidestep severance costs and public backlash by quietly nudging employees to quit.

Why do companies use silent firing?

1. Cost reduction: Companies can reduce headcount without severance or unemployment payouts
2. AI and automation: Silent firing enables organisations to integrate AI-driven efficiencies while discreetly downsizing
3. Avoiding legal implications: By making roles difficult companies avoid the legal and reputational challenges associated with direct layoffs.

Take the case of Big Tech companies. In 2022 the industry expanded its workforce by 5% only for many firms to reduce staffing to pre-2022 levels by early 2023. Silent firing played a role here with companies leveraging automation and AI investments to streamline roles. Amazon's strict five-day office mandate, despite strong employee resistance, has led many to speculate that the tech giant isn’t just ignoring worker preferences but actively pushing them out. Not surprisingly, Amazon isn’t alone; numerous tech companies, from Tesla to Meta, are doubling down on policies likely to induce resignations.

Quiet quitting: a prelude to silent firing

Quiet quitting – the practice of doing only the bare minimum to meet job requirements without taking on additional responsibilities – emerged as an early indicator of a shifting power dynamic. While not a formal resignation, quiet quitting gave workers a way to assert boundaries in response to overwork and burnout, particularly during the pandemic. It represented a passive resistance to the relentless hustle culture and an unwillingness to sacrifice personal time for ambiguous rewards. However, as companies caught on they began responding with tactics like silent firing, leading to an ongoing power struggle over control and autonomy in the workplace.

What are resignation agencies in Japan?

On the other side of this power dynamic Japan’s resignation agencies represent a compelling counterpoint to silent firing. These agencies allow employees to resign without directly confronting their employers. In a culture where loyalty and job stability are highly valued many workers feel pressured to stay in roles, even when facing burnout or toxic environments. Resignation agencies provide a respectful and anonymous way for employees to exit jobs, particularly appealing to younger Japanese workers who prioritise mental health.

How do resignation agencies work?

1. Third-party representation: Employees pay a fee for the agency to handle all resignation communications
2. No confrontation needed: The agency submits the resignation formally, protecting employees from uncomfortable interactions 
3. High success rate: Agencies like Momuri, a leading service, report a 100% success rate and have facilitated more than 20,000 resignations in the last two and a half years.  

According to Shinji Tanimoto, head of Momuri, employees turn to resignation agencies for various reasons: unpaid overtime, breaches of contract or even instances of harassment. The rise of resignation agencies signals a shift among younger workers in Japan, many of whom are less inclined to sacrifice their wellbeing for traditional notions of loyalty. The Labour Ministry notes that more than 30% of recent graduates in Japan leave their jobs within three years – a figure that would have been inconceivable during the country’s post-war economic boom when the concept of a ‘job for life’ reigned supreme.

Silent firing vs resignation agencies: How do they differ?

Both silent firing and resignation agencies reflect changing attitudes toward work but they serve opposing sides of the power dynamic:

• Silent firing: Employer-initiated, this tactic uses difficult work conditions to encourage resignations.
• Resignation agencies: Employee-driven, these agencies empower workers to leave toxic or stressful roles without confrontation.

In essence, silent firing benefits companies looking to downsize discreetly while resignation agencies provide employees with an autonomous way to exit unsuitable roles.

Generational shifts and the rise of worker autonomy

Both silent firing and resignation agencies reflect a profound shift in how younger generations view work. Gen Z and younger Millennials are setting boundaries around work and increasingly willing to leave roles that don’t align with their values or wellbeing. They’re rejecting old models of workplace loyalty that demand sacrifice in exchange for questionable long-term stability.

In Japan resignation agencies underscore this new mindset. As one employee, Mari, shared in an article in The Guardian, her decision to quit through a resignation agency allowed her to prioritise her wellbeing over an oppressive work environment. Similarly, silent firing demonstrates how companies are testing the boundaries of worker tolerance, forcing employees to choose between staying in uncomfortable conditions or leaving of their own accord.

Navigating the new power dynamics in HR

For HR professionals and people leaders these developments emphasise the need for a more nuanced understanding of employee expectations. Silent firing, while effective for downsizing, risks undermining trust, damaging culture and ultimately contributing to a cycle of disengagement. As automation and AI reshape roles, HR leaders must ask: are we investing in a supportive workplace or are we strategically sidelining workers?

In Japan the popularity of resignation agencies underscores the importance of cultural sensitivity in retention efforts. Imposing rigid structures or blocking resignations may drive young employees away and harm brand reputation. Retention today depends on cultivating an environment where employees feel valued and supported.

A workforce in flux

The rise of silent firing and resignation agencies signals a workplace increasingly defined by the push and pull of power dynamics. Employees today are less likely to accept unfavourable conditions quietly and younger generations in particular are rewriting the rules of job loyalty. The onus is on employers to adapt or face the consequences – either through turnover, disengagement or reputation risks.

As companies invest in technology they must also reinvest in trust, transparency and respect for the individual. Only then can they create a workplace where both technology and talent can thrive together.