Career coach says tech companies are laying off workers, reposting jobs at 20-30% less salary

Dmitry Demidovich/ShutterStock @careercoachmandy/TikTok (Licensed)

‘I was making 130k’: Expert says tech companies are laying off workers—then reposting same job at 20-30% less salary

'This is what's happening. Without a doubt.'

 

Kahron Spearman

Trending

Posted on Feb 10, 2024   Updated on Feb 14, 2024, 12:37 pm CST

In a TikTok video that has swiftly captured the attention of over 455,000 viewers, career coach Mandy (@careercoachmandy) unveils a concerning trend in the job market that has sparked widespread conversation.

The clip, a response to a commenter, sheds light on a practice becoming all too common among companies: Reposting jobs at significantly lower salaries following layoffs.

As Mandy explains, this tactic is not just a strategy to cut costs but a reflection of deeper shifts in the employment landscape, particularly in the context of big tech companies.

“Imagine you work at a big tech company, and you’ve been there, like, five, six years in. Your salary was, let’s say, $180,000. OK, now they let you go, and they’re like, ‘You know what? We could just repost this position for like $140,000, you know, and we just save $40,000,'” Mandy begins, setting the stage for a candid discussion on the realities many employees face in today’s job market. Her insights into the practice of reposting jobs for less pay after layoffs reveal a strategic move by companies to reset the salary base to a much lower threshold.

Mandy’s commentary resonates with many who have experienced or witnessed this phenomenon firsthand.

“This commentary is saying, yeah, there are layoffs and then rehires so that they can reset the salary base as much lower. That doesn’t really surprise me, but there are people in the comments who are like, ‘Yes, this happened to me,'” she notes, highlighting the personal impact of such corporate strategies on individuals. The notion of being a “boomerang employee”—laid off and then asked to return to the same job for less pay—is a testament to the tough decisions workers are forced to make in a challenging job market.

“If any of us were in that position where you lose a job and you lose your income, and then they ask you to come back, like, it’s a tough market. I’m sure that most of us would be like, ‘OK, I’ll come back.’ To then also be like, ‘OK, great. It’s the exact same job. We’re just going to pay you 20% less. Why? Because we can,'” Mandy articulates, capturing the dilemma many face when confronted with the option of returning to familiar roles under less favorable conditions.

As detailed by Business Insider, this practice of reposting jobs at lower salaries is part of a broader trend observed in the employment sector, particularly within tech companies, back in February 2023. Amid layoffs and a shifting economic landscape, companies increasingly offer lower salaries for new hires and exert greater control over employment terms. This “Great Reboot,” as some recruiters have dubbed it, signifies a recalibration of power dynamics between employers and employees, with companies taking steps to “put power back in their hands.”

A commenter made confirmation: “Recruiter here. This is what’s happening. Without a doubt.”

“I was making 130k. They let us go and reposted the job to 85k,” stated another worker.

“This happened A LOT after the pandemic. One company was paying 100k, did a layoff and went to 80k, and another layoff and went to 60k,” said another worker.

To combat this tactic, one person said, “Go back, then quit on your terms. Start looking for a job right away. Much easier to land another when you have one already.” Another stated, as a matter of future planning, “I’d probably take it, then increase my job search efforts by about 500%.”

One person joked, “Joke’s on them. I’m doing 50% less work.”

@careercoachmandy Replying to @e_.330 they will lay you off and then repost the position for 20 or 30 percent less to be more profitable #bigtech #googlelayoffs #corporatelife ♬ original sound – Career Coach Mandy

Mandy’s video is not just a commentary on the current state of employment but a call to awareness for job seekers and employees alike. It highlights the importance of understanding the changing dynamics of the job market and the need for individuals to navigate these shifts with caution and resilience. As companies adapt their strategies in response to economic pressures and evolving market demands, workers must adjust their expectations and strategies to ensure financial stability and career growth.

In a landscape where the rules of engagement are rapidly changing, Mandy’s insights serve as a crucial reminder of the complexities of modern employment, realities of layoffs, and the need for vigilance in the face of corporate maneuvers that could affect one’s livelihood. Her video, through its candid discussion and the engagement it has garnered, underscores the collective concern and solidarity among workers navigating the uncertainties of today’s job market.

The Daily Dot has contacted Mandy for comment.

Share this article
*First Published: Feb 10, 2024, 5:00 am CST