Re:Combination of both (Score 1)

The company I work for is doing the same thing, the company usually takes on the existing work force (called re-badging) to gather as much carnal knowledge and then do a re-org and everyone has to re apply for $35k dollar jobs (which is very difficult to live off of in the Bay Area); The company then brings in H1B's to rectify the problem (kinda like 3-card-monty).