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The Dumbest Move in Tech Right Now: Laying Off Developers Because of AI
(ppaolo.substack.com)
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this post was submitted on 20 May 2025
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Programming
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Since when are contractors lower pay? Companies waste fortunes on them.
That's because the agency gets half for basically doing nothing
They dont usually have benefits (eg: health insurance) or time off
Even accounting for that (at least in countries with national healthcare), they're definitely more expensive than regular employees.
You're right, but I think the main reason companies like it is because it's easier to get rid of contractors than full-time employees.
Employees are a liability on the balance sheet whereas contractors are just lumped into a project cost.
Healthcare is only a fraction of fringe costs — employer payroll tax, unemployment insurance, facilities and admin…