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Trump Media outsources jobs to Mexico, contradicting his ‘America First’ slogan.

by Anochie Esther
November 3, 2024 - Updated On November 4, 2024
in Business, News, Politics
Reading Time: 4 mins read
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Trump Media

Image Credits: Propublica

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As former President Donald Trump campaigns for a second term on promises to stop outsourcing and bring jobs back to the United States, his own media company, Trump Media & Technology Group (TMTG), has come under scrutiny for outsourcing coding jobs to Mexico. The company’s actions have frustrated some staff members and led to a recent whistleblower complaint. While Trump has criticized companies sending jobs abroad, TMTG’s reliance on foreign labor has raised questions about the consistency of its “America First” principles.

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According to ProPublica, TMTG hired Mexican workers to perform coding and other technical tasks for Truth Social, the company’s social media platform. This move is seen as contradictory by some, as Trump has repeatedly criticized outsourcing during his presidential campaigns and has pledged to stop companies from moving jobs out of the U.S. An individual with knowledge of TMTG said the outsourced work was conducted through an external entity, a common practice in the tech industry but one that conflicts with the “Proudly made in the United States of America” slogan prominently displayed on Truth Social’s homepage.

A spokesperson for Trump Media acknowledged that two contractors in Mexico were employed for technical support, characterizing the criticism as part of a “defamatory” campaign against the company. However, they declined to provide further details on the nature or duration of the contracts, the total number of foreign workers involved, or the cost savings that motivated these decisions.

Internal Frustrations and Whistleblower Complaint

The outsourcing decision has created significant discontent within TMTG, with staff members alleging the practice goes against the core mission of the company. In a whistleblower complaint to TMTG’s board, some employees expressed frustration over what they termed an “America Last” approach, citing a directive from CEO Devin Nunes to favor foreign contractors over American workers. The complaint argues that such decisions undermine the company’s mission and raise concerns about the quality and alignment of its workforce.

The whistleblower complaint also requested Nunes’ removal, claiming he has mismanaged the company by prioritizing cost-cutting measures, including outsourcing, that conflict with Trump’s political promises. Nunes, a former Republican congressman, has defended his leadership, pointing to TMTG’s rapid growth and low costs compared to other social media start-ups.

Eric Swider’s Defense and the Broader Industry Context

Board member Eric Swider has defended the decision to hire foreign contractors, framing TMTG as a “global multi-media company” that needs to remain competitive by accessing talent outside the U.S. Swider argued that utilizing subcontractors, who in turn might hire foreign workers, is standard practice in the industry and does not contradict TMTG’s mission or Trump’s “America First” stance. According to Swider, TMTG does not control the hiring practices of subcontractors, who may source talent internationally as needed.

Swider’s comments highlight a broader trend in the tech industry, where companies often turn to foreign labor for specialized roles or cost-saving measures. Nonetheless, TMTG’s actions are notable given Trump’s vocal stance against outsourcing and his repeated promises to penalize companies that relocate jobs overseas.

 The Economic and Political Stakes of Truth Social

Trump owns nearly 60% of TMTG, which has a significant economic and symbolic value for the former president. Truth Social, which markets itself as a platform for free speech, has become a central part of Trump’s public presence since his bans from mainstream social media in 2021. The platform has a modest permanent staff of a few dozen employees, with a substantial reliance on contracted labor to maintain operations.

The recent whistleblower complaint adds to TMTG’s challenges, including financial pressures and fluctuating stock prices, which have been influenced by Trump’s political standing. The upcoming election plays a significant role in the future valuation of TMTG, as Trump’s prominence and potential return to the White House could directly impact the platform’s visibility and user base. While TMTG’s stock has nearly doubled in recent weeks, it remains volatile, underscoring the financial stakes tied to Trump’s political ambitions.

Broader Controversy and Past Use of Foreign Contractors

This is not the first time TMTG’s employment practices have raised concerns. ProPublica previously reported that the company hired a foreign firm to source labor from the Balkans, reflecting a pattern of cost-saving strategies that involve foreign contractors. Critics argue that these decisions undermine TMTG’s commitment to American workers, while defenders maintain that subcontracting foreign labor is necessary for a lean and efficient operation.

Nunes, in a recent book on Truth Social, boasted about TMTG’s ability to “grow fast” and “spend less money” compared to other tech firms. Although he did not directly address outsourcing, his focus on cost control suggests that TMTG’s employment practices align with this broader strategy.

 Trump’s “America First” Campaign and TMTG’s Future

Trump’s criticism of companies that outsource jobs remains a central theme of his campaign for a second term. He recently threatened agricultural machinery maker John Deere with tariffs if it moved manufacturing operations to Mexico and has repeatedly criticized automakers with factories outside the U.S. Trump’s stance on outsourcing has resonated with a portion of his voter base, who see him as a champion of American labor and industry.

Yet, TMTG’s outsourcing practices have put Trump’s “America First” message under scrutiny. As the Nov. 5 election approaches, Trump’s critics argue that the practices of his own company reveal inconsistencies between his public rhetoric and business operations. With Truth Social’s reliance on foreign labor, Trump’s commitment to American jobs faces new questions, creating a potential tension that could impact his campaign and TMTG’s future.

The outsourcing controversy at TMTG highlights the complexities of Trump’s dual role as a business owner and political figure. As TMTG continues to source foreign labor to control costs, Trump’s “America First” campaign message risks being perceived as inconsistent. For Trump’s supporters, his business decisions may be seen as pragmatic; for his critics, they may fuel concerns about his commitment to American jobs.

Moving forward, TMTG must navigate these criticisms while striving to balance operational efficiency with the values Trump has publicly championed. The outcome of the upcoming election may shape both TMTG’s direction and Trump’s legacy, as he seeks to reconcile his political stance with the realities of running a global multimedia company.

Tags: #“America First” campaign#job outsourcing#Trump MediaMexico
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