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Quiet firing | RTO mandates used as cover to hide job cuts in US firms

Office team eating pizza together

Return-to-office mandates are emerging as an alternative to layoffs, with US employers using stricter in-person requirements to shrink headcount through attrition rather than formal redundancies.

The Federal Reserve’s Beige Book, published last week, reported that businesses across multiple districts have “encouraged” voluntary departures by tightening office policies. The document, released eight times annually, reflects interviews with executives, economists and local contacts on current economic conditions.

Workers face pressure as options shrink

Separate research shows that nearly 3 in 10 organizations intend to require employees to work in the office five days a week by the end of 2025. More than half of Fortune 100 desk staff are already back full-time, according to Jones Lang LaSalle.

While some employers frame stricter office policies as cultural or performance-driven, the Beige Book findings suggest companies are also using them to quietly manage headcount. A 2024 survey of 1,500 managers revealed that one-quarter of executives expected RTO rules to drive resignations, with one in five HR professionals admitting the same.

The strategy carries risks, however, with a 2025 Pew Research Center poll finding that almost half of employees would be unlikely to remain in a role if remote work were completely removed, including a quarter who said they would be “very unlikely” to stay.

Microsoft has confirmed it will ask staff to be in the office three days a week. In a memo, Amy Coleman, Executive Vice President and Chief People Officer, insisted the policy “is not about reducing headcount,” but about enabling collaboration and customer service.

Attrition by design

Even as employers tighten rules, compliance is not guaranteed. A Resume Builder report noted that one in five workers ignore in-person mandates. Even CEOs themselves appear reluctant to follow their own orders, with 93% saying they do not work in the office full-time and prefer flexible schedules.

For employees considering quitting, the alternatives may be limited as white-collar job growth has slowed, and industries such as healthcare and hospitality are driving hiring gains. Service workers without degrees, including bartenders and baristas, are currently seeing stronger wage growth than office-based professionals.

Artificial intelligence adoption brings additional challenges, with the Beige Book highlighting its role in helping firms streamline workforces without overt layoffs.

As return-to-office policies become a management tool to reshape workforces, the question that remains is whether the approach leads to improved performance or fuels higher attrition in a slowing job market.

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