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aecarol1 t1_j6ojrwd wrote

So they will lay off the people who know a particular system or process, then hire the other companies guy to do exactly the same thing?

But now they will have lowered productivity during the months it will take to train the ne guy in the old system + they will have the overhead of the generous severance packages they had to pay out.

tl;dr paying generous severance + training overhead of the "poached" people to learn your systems will easily destroy any imaginary savings.

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Autotomatomato t1_j6okq2t wrote

Amazon layed off the entire dept in their vertical gaming division when it was supposedly profitable and made headway in market penetration but they had to meet a quota so they jettisoned the ENTIRE team because they were around a long time.

This practice is ruining entire divisions across corporate America.

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aecarol1 t1_j6or985 wrote

Of course they are making foolish decisions. In your example they are simply gutting a division and possibly getting out of a specific business. My point was that companies were not "swapping" employees to keep wages low.

These companies are paying good severance, and the new guys would be coming in totally unprepared for the systems and projects underway. That would completely consume any imagined savings from driving wages down.

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grannyte t1_j6pix2l wrote

And this is how legacy code is created people

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