Facebook employees may face pay cut if they move to cheaper areas to work from home

MarketWatch: Mark Zuckerberg says he expects about half of Facebook Inc.’s employees to work from home five to 10 years from now, but there’s a catch for those expecting to take their fat Silicon Valley salaries and live like kings in a rural area.

As in, a pay cut.

The Facebook FB, +1.52% chief executive laid out the company’s future remote-working plans during a videoconference with employees Thursday. Zuckerberg said Facebook will “aggressively” ramp up the hiring of remote workers, though not all employees would be allowed to permanently work from home, at least at the start.

And those who choose to work where the cost of living is less should expect to be paid less.

“That means if you live in a location where the cost of living is dramatically lower, or the cost of labor is lower, then salaries do tend to be somewhat lower in those places,” Zuckerberg said.

Facebook already pays based on location, but Zuckerberg said employees working remotely must notify Facebook if they move to a new area before Jan. 1, 2021. read more

22 Comments on Facebook employees may face pay cut if they move to cheaper areas to work from home

  1. This is actually kind of reasonable, otherwise you end up pricing the local people out of their own markets and impoverishing many of them as a result.

    More money in a given area competing for the basic essentials that constitute the “cost of living” results in an inflation in their prices.

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  2. Will FB be around in any meaningful fashion in 10 years? It already appera to be in the wane in popularity.

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  3. I get moving operations to lower-tax, lower-cost areas and hiring people at lower wages. But when you have valued a particular employee at a certain salary, allow him to work from home, then when he moves to a lower-cost area demand a reduction in salary you are suggesting that he is no longer worth as much. All I know is that if that happened to me I would be sending my resume around – it would not say much in favor of my employer.

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  4. So facebook won’t pay for the actual value of your work, but rather from each according to his ability and to each according to his need. Where have I heard that before?

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  5. Reducing FB’s overhead by less office space should also be considered. People moving out of the high rent districts these behemoth’s create will have a positive effect on those that remain.The cost of housing will go down. Traffic will be reduced. There will be less pressure on schools. If FB decides to increase their profit by employees maximizing the use of their paychecks, some will leave. The free market works.

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  6. Remember: yahoo tried the remote worker thing. They discovered it was less effective.
    There is nothing like in-person synergy for innovation.

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  7. I saw this earlier in the week and have one honest question. How would this even be legal under any “equal pay for equal work” laws or regulations?

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  8. My former employer was nationwide. They paid people in my job as little as $44k and as much as $120k depending partly on where they lived. In the West salaries were high. In the SE they were low.

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  9. I brought my job with me when I came to Texas, and kept my Kali salary for 7 years… It’s a good gig if you can swing it. But the key thing is, nothing in Tech lasts, and finding comparable employment after that was challenging.

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  10. @Little Morphin’ Annie May 23, 2020 at 11:51 am

    > from each according to his ability and to each according to his need. Where have I heard that before?

    You “misheard.” He said “From each, according to xis ability. To capitalists, according to their greed.”

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  11. @Anonymous May 23, 2020 at 12:57 pm

    > yahoo tried the remote worker thing. They discovered it was less effective.

    Yahoo’s Big New Feminist (lesbian? distinction without a difference) in charge, tried the remote worker “thing”.

    All the grrls found out there was nobody to gossip with, while avoiding work, at home.

  12. @Anonymous May 23, 2020 at 12:57 pm

    > yahoo tried the remote worker thing. They discovered it was less effective.

    Yahoo’s Big New Feminist (lesbian? distinction without a difference) in charge, tried the remote worker “thing”.

    All the grrls found out there was nobody to gossip with, while avoiding work, at home.

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  13. This whole thing is an experiment in who will submit and who will not and to what degree. That is more or less the Alpha and the Omega of these shutdowns.

    Everything one does is being monitored and recorded for future reference. They know who will submit to personal humiliation and to what degree they will submit. When you go to Costco and submit to wearing a totally ineffective mask in order to do so, instead of saying screw you Costco I will be back when I can decide for myself what I am going to wear, that is all being recorded and cataloged.

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  14. Lazlo’s job has me working from home for part of my job.
    My work pays the same wherever I live.
    I moved from an apartment to a house. Bills went up. Pay stayed the same.
    You pay me for the job based on my ability.
    If I am smart enough to have a high paying job and live in a low expense are, that makes me smart.
    You don’t punish people for being smart.
    Would you pay a guy less because he lives on a boat and his enjoys his life in a manner you find enviable?
    Piss off Zuckerberg and your nosy ways

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  15. So, if an employee decides to purchase a Hyundai instead of a Mercedes Benz would their pay likewise be adjusted?

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