ASK THE HEADHUNTER Zuckerberg plan cuts pay for up to 50% of Facebook employees

[deanwebb]

Zuckerberg plan cuts pay for up to 50% of Facebook employees

Nick’s take Leave it to Silicon Valley’s greediest CEO to boost profits by leveraging COVID-19 to induce up to half his employees to move out of the Bay Area so he can cut their salaries. Hey — that’s how I read it. If about 50% of Zuck’s workers go remote, FB will effectively cut up to 50% of its payroll, using what he calls “the honor code.” Do ya think Zuck sends lower Facebook stock dividends to investors in Greybull, Wyoming because their cost of living is lower than his? Is an engineer that lives in Silicon Valley worth less

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Source: Zuckerberg plan cuts pay for up to 50% of Facebook employees

[deanwebb]

Wow, just in case you were wondering if Zuckerberg was a complete tool, this juicy little data point rolls on in... just wow...

[Otanx]

I kind of feel this is just a Facebook is bad post. The government does this exact thing, and has for longer than I have been alive. It is called COLA. A GS-13 makes the exact same salary as any other GS-13, but they get a cost of living adjustment based on their location. You move, or COLA changes. Same with Military. An E5 is an E5. They get housing allowance based on where they are stationed. I can't remember which but Cisco or A10 also does this. Maybe both.

Also the math in the post is wrong. If 50% of the employees move to a cheaper area he isn't cutting 50% of his payroll. It would be much less. Unless he is not paying remote workers at all. That would be news.

-Otanx

[deanwebb]

A number of firms will have a COLA for high-rent districts. But there are also firms that refuse to pay a US salary if an employee chooses to move out of the USA. If I moved to Peru, for example, my salary goes a long, long way in that nation. But if I move to Peru, my salary stays here and I get a different, lower one for that other place.