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Why don't companies just give everybody a pay cut and pocket that difference, too?
by SamReidHughes 9y ago
Why don't companies just give everybody a pay cut and pocket that difference, too?
- danans 9y agoBecause doing it that way would be a public relations disaster, and likely destabilize the company. The way they do it is by layoffs and planned attrition to return to growth. I'm sure everyone has seen a stock price jump when large scale layoffs are announced.
- acdha 9y agoThey do: this thread is about one of the most common ways – and there are plenty of stories of people being ordered to train their replacement contractors to do the same job at lower rates – but other popular strategies include cutting benefits, reducing annual raises relative to the cost of inflation, or not hiring adequate numbers of people and pressuring the staff to try to do the extra work anyway (i.e. unpaid overtime). The main counterbalance is market pressure, which is why high-demand programmers don’t see this as often as other fields where people have less leverage, and, in bluer states, the risk that doing so will trigger government action.