Big Tech Companies like Google Cut Salaries for Remote Employees

[Photo by AP Yonhap News]

[Asia Economy Reporter Byunghee Park] Big tech companies in Silicon Valley, such as Google, Facebook, and Twitter, are reportedly cutting the salaries of employees who work from home. This is due to the new compensation systems these companies have established following the spread of remote work after COVID-19.

In June, Google developed and distributed a new program called the "Work Location Tool" to its employees. This program accurately calculates the salary an employee will receive based on the region where they live. Google developed this program anticipating that hybrid work, where employees both come to the office and work remotely, would become common after COVID-19.

An anonymous employee said that if they wanted to continue working from home after COVID-19, they would have to accept a 10% salary cut. This employee stated that it takes two hours to commute to Google's office in Seattle. After considering continuing remote work post-COVID-19, they decided to keep commuting after seeing the 10% salary reduction calculation.

Google's new program calculates salaries by considering whether the employee's place of residence has a high or low cost of living. Generally, suburban areas with longer commutes have lower living costs, resulting in larger salary cuts. According to Google employees, salary reductions can be as much as 25%.

Facebook, Twitter, and other companies have also cut salaries for employees working remotely in areas with lower living costs. Smaller companies like Reddit and Zillow are also adopting new compensation systems by analyzing work locations, reflecting the increasing adoption of remote work, according to foreign media reports.

This content was produced with the assistance of AI translation services.