Facebook's salary-by-location move raises more questions

Will cuts for staff working from home in cheaper areas change supply and demand dynamics for pricier cities?

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Facebook announced in May that up to half its workforce is likely to be working from home within the next five to 10 years. There is one caveat: Staff salaries could be adjusted to align with the cost of living in their chosen location, meaning potential pay cuts for those considering moving away from its expensive Palo Alto base and other global hubs.

Chief executive Mark Zuckerberg told staff via video that the change will come into effect from January.

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A version of this article appeared in the print edition of The Straits Times on July 16, 2020, with the headline Facebook's salary-by-location move raises more questions. Subscribe