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SpaceX to lay off 10% of Workforce

latimes.com

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Re: SpaceX to lay off 10% of Workforce

#41
post #27

According to some comments from employees, the company had an all-hands meeting where everyone was sent home and told to check their email over the weekend to find out if they're being laid off or not: https://www.reddit.com/r/spacex/comments/af1n7f/spacex_will_...

Whatever the reasons for the workforce reduction, this way of doing it is just unnecessarily cruel.

what is the less cruel way to lay off 10% of your workforce

Re: SpaceX to lay off 10% of Workforce

#42
post #4

Is this a bad sign for SpaceX? Is ‘getting leaner’ why they’re really doing this?

They recently switched from composite hull to metal hill for BFR/Starship, so it might be a case of terminating those employees whose primary focus was designing the composite hull and whose skills were not transferable. There will likely be talent pools that get thinned out too, welders who won’t be so necessary now that Block 5 is in production and Falcon Heavy is “operational” (meaning fewer expendable launches, less demand for welders to build new rockets).

It doesn’t help that there’s been little warning (though I guessing a lot of these employees had some warning that they are going ormtheir teams are getting thinned).

I hope for the best, the people leaving SpaceX have certainly got great resumes to recommend them to new employers!

Re: SpaceX to lay off 10% of Workforce

#44
> We had an all hands meeting and were told to go home and wait for an email that basically says we stay or go. (from reddit post)

I'm surprised about that idea. At that size I expected them to follow "your account is locked immediately before you're told" policy. Guaranteeing people have access to company emails over the weekend and are told they're fired, sounds like a bad idea for IT to deal with.

Re: SpaceX to lay off 10% of Workforce

#45
post #16

They've proven that they can make reusable rocket. In the early days they had around 6 launches per year requiring six separate rockets. Now they're hitting 20-25 launches per year and can carry an even larger payload on each launch. But they claim to be able to fly each rocket ten times before needing to make a new one. So you're going from 6 new rockets per year to 2 new rockets per year. Also rockets are not like…

> So you're going from 6 new rockets per year to 2 new rockets per year. Also rockets are not like your software programs that get rewritten every time a manager feels like it. You stick with what works. Last year, SpaceX had big plans for new rocket designs, a satellite constellation, and more. Unlike a ravioli canning plant, SpaceX has an option other than cutting down to maintnence staff once cash flow positive. I…

Unless they're cutting the satellite constellation I think this fits in with what people expected for SpaceX's growth. The problem is even as costs for rocket launches go down we aren't seeking hockey stick growth in the demand for rocket launches. The number of rocket launches per year has remained steady since 2015. SpaceX is getting an increasing number of those launches but even if they got all of them they would only have 40 launches. I'm not sure what else they've publicly advertised which would assume hockey stick growth.

Re: SpaceX to lay off 10% of Workforce

#46
post #41

Earlier quoted context omitted.

Whatever the reasons for the workforce reduction, this way of doing it is just unnecessarily cruel.

what is the less cruel way to lay off 10% of your workforce

Tell the affected ones immediately. Don't tell the other 90% that they're potentially getting fired tomorrow. Treat people with respect and be transparent when you hold power over them.

Re: SpaceX to lay off 10% of Workforce

#47
post #41

Earlier quoted context omitted.

Whatever the reasons for the workforce reduction, this way of doing it is just unnecessarily cruel.

what is the less cruel way to lay off 10% of your workforce

Well, rather than a "Don't come Monday" email on a weekend, which effectively gives them 0 working days notice, giving those employees say, 2 weeks notice that they will be terminated at least gives them a chance to re-train for another position or get their resumes together to try and find another job while still getting an income to pay for rent, food etc.

FAR less 'cruel' to give them an opportunity to plan their exit and give them the psychological space to get used to the fact.

EDIT: In light of the 'read the article' responses and downvotes, I wanted to clarify that my comment here is directly addressing the question "what is a less cruel way of laying people off" against the purported scenario above of people being told on Friday to go home and check their emails to see if they still have a job on Monday.

Re: SpaceX to lay off 10% of Workforce

#48
post #12

Earlier quoted context omitted.

Ah the glory of the stack ranking. Microsoft did this as well, and it was much celebrated when they stopped, as the stack ranking had a lot of effects that had nothing to do with performance (like coworkers stonewalling each other, or infighting, and what do you do with an org of rockstars).

Not to mention that eventually you end up firing some really smart people and find worse replacements (not in the least due to shitty reputation - but also because of regression to the mean and because people are biased towards hiring worse than themselves in this regime). Definitely so at 10% p.a. if you're in a remotely niche industry.

Additionally, when the stack ranking is done at the first or second-level manager (which is usually the case), you end up making sub-optimal decisions. Meaning: the bottom 10% on team A may be better than the top 20% of team B. Which then leads A-players to seek to work on B-teams, so they can be on the top of the stack ranking.

Stack ranking is a failed experiment, and by now I think all companies realize that.

Re: SpaceX to lay off 10% of Workforce

#49
post #41

Earlier quoted context omitted.

Whatever the reasons for the workforce reduction, this way of doing it is just unnecessarily cruel.

what is the less cruel way to lay off 10% of your workforce

To tell people face to face, to have the courage instead of hiding behind the impersonal email. Basic etiquette.

Re: SpaceX to lay off 10% of Workforce

#50

Earlier quoted context omitted.

Not to mention that eventually you end up firing some really smart people and find worse replacements (not in the least due to shitty reputation - but also because of regression to the mean and because people are biased towards hiring worse than themselves in this regime). Definitely so at 10% p.a. if you're in a remotely niche industry.

Apparently some managers used to hire sacrificial lambs with the express purpose of culling them to spare the rest of the team.

Can confirm
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