Comment on AI layoffs backfire as cutting staff doesn't cut it, firms warned

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HobbitFoot@thelemmy.club ⁨4⁩ ⁨days⁩ ago

I don’t think it is just failing companies that are doing this.

COVID fundamentally broke the relationship of cost of living to the salary of certain jobs. You don’t need to pay salaries for people to live in Silicon Valley or Seattle if everyone in the department is full remote. So, if you are going to keep the job as full remote, you can base the salary on a more average cost of living and cut wages. You can use AI as an excuse for senior staff layoffs for investors, then quietly hire workers in more parts of the world with lower salaries.

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