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Same thing happening in my department. They’ve been pulling the 'internal alignment' card for months now while everyone is drowning in tickets. It is definitely a quiet layoff strategy. Management refuses to acknowledge the workload increase because they don't want to admit we're severely understaffed. They’re banking on the survivors just burning out instead of quitting so they don't have to pay severance. Don't expect any backfills anytime soon; they are clearly squeezing the budget until the end of the fiscal year.
I honestly think leadership has lost the plot. The 'indefinite hold' on open reqs has become the company's favorite buzzword to avoid talking about actual stability. Every time someone puts in their two weeks, the remaining team just gets handed their entire desk load with zero extra compensation or support. The morale is hitting an all-time low because we can see exactly what they’re doing. It’s impossible to maintain any kind of quality control when we’re being stretched this thin, but heaven forbid they hire a replacement.