While opinions differ about whether the article has any merit, I know that when California brought the AB5 bill several top quality folks doing "side gigs" for

While opinions differ about whether the article has any merit, I know that when California brought the AB5 bill several top quality folks doing "side gigs" for my then employer were subtly let go because the management believed that the nature of their association with us brought them within the ambit of "contractor". They were quickly replaced with people from cheaper locales. I've also seen documents supporting a few H1B filings and know that most of the skills mentioned in their are fabricated. So yes companies do this regularly to cut costs in the name of layoffs and talent shortage.