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Software firm VMware will start cutting pay for employees who leave Silicon Valley, according to a recent Bloomberg report.
While employees can work remotely on a permanent basis, they could face an 18% pay cut for moving to a city like Denver, Bloomberg reports.
VMware isn’t the only company reconsidering employee pay. Facebook will start adjusting salaries in January based on where employees live, according to The New York Times.
Twitter has had a pay localization policy in place for years as part of a broader push to decentralize its workforce.
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As tech workers continue to leave Silicon Valley for more space and a better cost of living, the companies they work for are responding with a change of their own: cutting salaries. Over the past six months, many employees living in major cities like San Francisco have uprooted their lives in favor of less densely populated areas with a lower cost of living and more space. While some workers intend to return to the Bay Area once offices reopen, others are making a permanent change, with the intention to work from home indefinitely. In response, major tech firms have begun scrutinizing the pay …
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