> That's probably got more to do with the traditional link between pay and seniority, than to anything really related to skills: a relatively small disruption

> That's probably got more to do with the traditional link between pay and seniority, than to anything really related to skills: a relatively small disruption in productivity is handsomely offset by a big net cut in salary expenses, as the younger employee will likely command a much lower wage. Not really. Large scale layoffs are way more disruptive and expensive than the savings by rotating into lower seniority people. Every company we work with aggressively hires from its transitioning employee pool to save institutional knowledge and severance costs. Some even provide a multi-month working period to give them time to find something internally. A surprisingly high percentage get rehired. But the simple fact is that most companies don't employ a workforce that can be "trained on a new machine" and be just as productive as someone who has years of experience with it. Its not like learning another programming language. Skills gaps are real. Source: I work for a company who helps people who lose their jobs to layoffs