Merck, one of the world’s largest pharmaceutical companies, has been a pioneer of this strategy. In 2008, when it came under pressure to cut costs, it sold its Philadelphia factory to a company that fired all 400 employees and then rehired them as independent contractors. Merck then contracted with the company to carry on making antibiotics for them, using the exact same employees.
Source: Can Workers Get a Fair Deal in the Gig Economy? by Steven Hill — YES! Magazine