This is a classic short term profit / long term loss strategy. Fire the local workers. Depress the local economy. Fewer locals can buy your product. Your sales go down. Your competitors sales go down. THey fire people. Economy continues to decline, more people are fired, and sales continue to plummet.
Long term companies thrive when the local consumers are well paid. No one can go for a long term strategy though because shareholder value is only measured in next quarters dividend / share price and not the expected value in 5 years.
Nothing is more admirable than the fortitude with which millionaires tolerate the disadvantages of their wealth. -- Nero Wolfe