It's more like "We are laying off US workers to save money and replace them with a (cheaper) outsourcing company already operating in the US".
As with all things, you get the talent you pay for.
Any engineer who accepts lower wages than their predecessor is either of lower talent and experience, or is by some situation forced to accept less. "Forced" being a key term.
Talent cannot be measured with the same formula used for guns and butter.