That's a complicated question. My answer is probably they will get paid less. They are producing something for which there is less demand.

However, in today's economy the situation you describe would have the workers being paid less and the owner trying to keep as much of the surplus value from their labor as possible.

So, even in a failing company, I'd expect the wages to increase for workers if they received 100% of their value.

>My answer is probably they will get paid less. They are producing something for which there is less demand.

and this is how gentrification works. Not because a company starts to pay less, but because other companies pay more and make just the act of existing close to those companies (even if you were in fact there first) more expensive.

Your solution is great for tech workers, but ultimately means a large swath of society would suffer.

I guess if all the profits go to the workers, who provides the investment necessary to start the company in the first place? You could say it's the employees, but then we get in the weird situation of people having to pay to get a job.

It’s unworkable at a market level, but ideally, yes. Working for failing companies means you’re just wasting your time and not contributing to the society.