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Layoffs Hit Gumroad as the E-Commerce Startup Restructures

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Re: Layoffs Hit Gumroad as the E-Commerce Startup Restructures

#21
post #19

Earlier quoted context omitted.

Not in SF, where the median rent is now $4,225/month, or $50,700/year. Realistically, you can't even expect to take home $50,700 on a gross income of $75k. http://blog.sfgate.com/ontheblock/2015/06/02/san-franciscos-...

I've been thinking about this lately. Why doesn't Google or Facebook just pack up one day and go to... say, Detroit? Buy a shitload of property there, and tell all their workers that in the course of the next 5 years they want to have presence in two places: this new place in Detroit, and the old place in the Valley. Whoever wants to stay in the valley can stay... and whoever wants to move to Detroit can come move to…

There is a long history of Company Towns in the United States. At their peak in the first half of the 1900's, about 3% of the population lived in one.

At the time, it was seen by the industrialists as a way to raise their workers into the middle class. "Paternalism was considered by many nineteenth-century businessmen as a moral responsibility, or often a religious obligation, which would advance society whilst furthering their own business interests. Accordingly, the company town offered a unique opportunity to achieve such ends."

"Although economically successful, company towns sometimes failed politically due to a lack of elected officials and municipally owned services. Accordingly, workers often had no say in local affairs and therefore, felt dictated. Ultimately, this political climate caused resentment amongst workers and resulted in many residents eventually losing long-term affection for their towns."

Perhaps it is time for a new company town concept being pushed by one of the big tech firms. Apple, Microsoft, Facebook, or Google might be able to pull it off. It could also be a test bed for their new technologies.

[*] Quoted paragraphs lifted from https://en.wikipedia.org/wiki/Company_town

Re: Layoffs Hit Gumroad as the E-Commerce Startup Restructures

#22

Earlier quoted context omitted.

$75,000 isn't market wages for a developer?

Not in SF, where the median rent is now $4,225/month, or $50,700/year. Realistically, you can't even expect to take home $50,700 on a gross income of $75k. http://blog.sfgate.com/ontheblock/2015/06/02/san-franciscos-...

Is it actually that bad? SF rents are certainly not low, but if you check Craigslist/PadMapper, it would seem difficult to pay $4k, let alone that being the median.

Re: Layoffs Hit Gumroad as the E-Commerce Startup Restructures

#23

Earlier quoted context omitted.

Not in SF, where the median rent is now $4,225/month, or $50,700/year. Realistically, you can't even expect to take home $50,700 on a gross income of $75k. http://blog.sfgate.com/ontheblock/2015/06/02/san-franciscos-...

Is it actually that bad? SF rents are certainly not low, but if you check Craigslist/PadMapper, it would seem difficult to pay $4k, let alone that being the median.

That number is for all apartments (http://blog.sfgate.com/ontheblock/2015/06/02/san-franciscos-...). So this lumps in studios, 1 BRs, 2BRs etc. When you consider that it is (slightly) less crazy. However the median rent for a 1BR is still $3,530 (http://sf.curbed.com/archives/2015/09/03/san_franciscos_medi...).

More anecdotally it is basically impossible to get a studio for less than $2k or a 1BR for less than $2.5k-$3k. I pay ~$1700 but have 1 bedroom in a 4BR apartment. If you are willing to live with roommates rent can start to become "reasonable" (assuming a $100k+ salary), but you're kind of screwed in SF proper if you want to be on your own and pay less than $2k.

Re: Layoffs Hit Gumroad as the E-Commerce Startup Restructures

#24

The company had 22 employees as of earlier this year, and it has been in the process of laying off all but what is expected to be around 3 of its staff. Normally, when I hear the words "layoff" and "restructure", I think 15% of the company, not 'basically everyone.' That's a bummer, and I expect this won't be the last time we hear this story this year. I hope the frontend engineers making $75,000-$125,000[1] for a sh…

That's from 2013. No way they were paying sub $100k today.

There's a "hiring" post on the front page right now offering sub $100k for front end developers and others. It's in Oakland though.

Re: Layoffs Hit Gumroad as the E-Commerce Startup Restructures

#25
post #11

I remember when Gumroad was announced on Hacker News 4-5 years ago as a little weekend project. "Over this past weekend I had the idea to build a sort of link shortener but with a payment system built-in... I think it has some potential. What do you guys think?" https://news.ycombinator.com/item?id=2406614

[deleted]

Re: Layoffs Hit Gumroad as the E-Commerce Startup Restructures

#27
post #19

Earlier quoted context omitted.

Not in SF, where the median rent is now $4,225/month, or $50,700/year. Realistically, you can't even expect to take home $50,700 on a gross income of $75k. http://blog.sfgate.com/ontheblock/2015/06/02/san-franciscos-...

I've been thinking about this lately. Why doesn't Google or Facebook just pack up one day and go to... say, Detroit? Buy a shitload of property there, and tell all their workers that in the course of the next 5 years they want to have presence in two places: this new place in Detroit, and the old place in the Valley. Whoever wants to stay in the valley can stay... and whoever wants to move to Detroit can come move to…

Because money alone isn't enough; you need good schools, roads, and other public services.

Re: Layoffs Hit Gumroad as the E-Commerce Startup Restructures

#28
post #19

Earlier quoted context omitted.

Not in SF, where the median rent is now $4,225/month, or $50,700/year. Realistically, you can't even expect to take home $50,700 on a gross income of $75k. http://blog.sfgate.com/ontheblock/2015/06/02/san-franciscos-...

I've been thinking about this lately. Why doesn't Google or Facebook just pack up one day and go to... say, Detroit? Buy a shitload of property there, and tell all their workers that in the course of the next 5 years they want to have presence in two places: this new place in Detroit, and the old place in the Valley. Whoever wants to stay in the valley can stay... and whoever wants to move to Detroit can come move to…

Because the Bay Area has a lot more attractions than tech jobs.
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