Stripe laying off around 14% of workforce • Hacker News Board

Re: Stripe laying off around 14% of workforce

#211

Post by throwaway9191aa » Thu, Nov 03, 2022, 2:55 PM UTC

eganist wrote: post #155

lefstathiou wrote: post #134

Earlier quoted context omitted.

What more do you want? They are paying out millions in cash ("out of the goodness in their heart"... ie they don't have to and people shouldnt expect) which is directly reducing the value of the equity, which impacts them more than anyone else by a huge proportion. Handing out equity grants makes no little sense to me and is unlikely what these employees want... "hey you're fired, here's some stock at our latest valu…

I don't want anything; I have no intention of working for stripe. But in the face of fundraising headwinds, a decision to cut costs like this only improves (or stabilizes anyway) their ability to raise at a valuation closer to what they're looking for in this down market. The severance package here only deferred the benefit to the bottom line, but it wasn't a consequence for over-hiring and potentially disrupting liv…

For the sake of argument, let's just assume that all of this is true and they are acting in self interest and everyone is horrible all the time.

I would still take the deal. I would work there if they hired me. If there are enough people like me to continue the business, then this thing turns out to not be shitty. Only time will tell.

Re: Stripe laying off around 14% of workforce

#212

Post by patch_cable » Thu, Nov 03, 2022, 2:55 PM UTC

antihero wrote: post #177

imnotreallynew wrote: post #124

Earlier quoted context omitted.

Goodness, I’d voluntarily take that deal anyday. 3.5 months of paid vacation at the salaries Stripe pays? Yes please. I just read the rest. On top of 3.5 months pay, they get accelerated vesting, cash payment for healthcare benefits, all unused PTO paid, and more. That’s incredible.

Isn’t it mandatory to pay holiday accrued? Because it’s been, well, accrued…

It is not in most of the US.

Re: Stripe laying off around 14% of workforce

#213

Post by lucasyvas » Thu, Nov 03, 2022, 2:55 PM UTC

huffmsa wrote: post #172

joegahona wrote: post #151

Earlier quoted context omitted.

Do you have an example handy of a CEO who has provided acceptable accountability in a situation like this?

Satoru Iwata took a large pay cut when Nintendo was in a downturn in 2014ish

Came here to say this one.

Re: Stripe laying off around 14% of workforce

#214

Post by eganist » Thu, Nov 03, 2022, 2:56 PM UTC

huffmsa wrote: post #172

joegahona wrote: post #151

Earlier quoted context omitted.

Do you have an example handy of a CEO who has provided acceptable accountability in a situation like this?

Satoru Iwata took a large pay cut when Nintendo was in a downturn in 2014ish

Good call. https://www.bbc.com/news/business-25941070

Re: Stripe laying off around 14% of workforce

#215

Post by orra » Thu, Nov 03, 2022, 2:56 PM UTC

heliodor wrote: post #88

thomasjudge wrote: post #41

Earlier quoted context omitted.

Just like companies are using the cover of "inflation" to jack up prices (and profits) regardless of if they have cost increases or not

Who doesn't have cost increases?

I’ll rephrase what the other user said: businesses are not typical consumers. And CPI measures typical consumer price inflation.

Hence, it's disingenuous for businesses to put up prices by CPI. In fact, businesses putting up prices is often a driver of CPI.

Businesses face their own changes in prices, yes, but not by CPI.

Re: Stripe laying off around 14% of workforce

#216

Post by tempsy » Thu, Nov 03, 2022, 2:56 PM UTC

imnotreallynew wrote: post #124

memish wrote: post #90

Earlier quoted context omitted.

That's in the email: Severance pay. We will pay 14 weeks of severance for all departing employees, and more for those with longer tenure. That is, those departing will be paid until at least February 21st 2023. Bonus. We will pay our 2022 annual bonus for all departing employees, regardless of their departure date. (It will be prorated for people hired in 2022.) PTO. We’ll pay for all unused PTO time (including in re…

Goodness, I’d voluntarily take that deal anyday. 3.5 months of paid vacation at the salaries Stripe pays? Yes please. I just read the rest. On top of 3.5 months pay, they get accelerated vesting, cash payment for healthcare benefits, all unused PTO paid, and more. That’s incredible.

Not sure if frantically interviewing for a new job during the holidays when lots of tech companies are also laying people off can be considered a vacation.

Re: Stripe laying off around 14% of workforce

#217

Post by TomBombadildoze » Thu, Nov 03, 2022, 2:56 PM UTC

tomnipotent wrote: post #199

TomBombadildoze wrote: post #176

Earlier quoted context omitted.

Please. Stripe is privately held so let's look at a market comp, SQ. SQ 2021 Revenue: $17B SQ 2021 cash and short term investments: $5.3B Stripe 2021 Revenue: $12B Similar businesses, operating in the same market, with the nearly the same number of employees (about 8000). Barring exceptional circumstances, we would expect their financial health to be roughly similar. You said it yourself: > the leaders have to... [de…

How can the share price of a private company be falling? > They could afford to dip into cash Why should they risk cash reserves with an uncertain future? So that they can layoff 30% later on if things get worse?

Their own internal price target, the FMV they assign to shares.

https://www.wsj.com/articles/stripe-cuts-internal-valuation-...

Re: Stripe laying off around 14% of workforce

#218

Post by shuckles » Thu, Nov 03, 2022, 2:57 PM UTC

bryant wrote: post #165

joegahona wrote: post #151

Earlier quoted context omitted.

Do you have an example handy of a CEO who has provided acceptable accountability in a situation like this?

Good examples of self accountability? Sadly not. (Edit: see huffmsa for a good example) Good examples of accountability to the board? All over. But boards care (by mandate) only about profit unless specified otherwise. There's no incentive for a board to care about whether people are put out on the street either; it's one of the major reasons for why unions exist and are successful: they provide a mechanism for accou…

Unions have a range of outcomes for business success. Yes, some may hold management accountable and ultimately help companies; others screw over everyone besides long tenured employees. Suppose Stripe was unionized and somehow the union had convinced management to stop hiring in February 2022 which is the level they’re reducing headcount to now. Would the laid off employees been better off in that world without a year of Stripe employment, income, and benefits? It’s very unclear.

Re: Stripe laying off around 14% of workforce

#219

Post by chasd00 » Thu, Nov 03, 2022, 2:57 PM UTC

gunapologist99 wrote: post #146

eganist wrote: post #47

Hey pc, if you're around: > John and I are fully responsible for the decisions leading up to it. What are the two of you doing to show accountability? Are you slashing your own future stock grants, cutting your own salaries, diluting your positions with stock grants to everyone else? What's the consequence for this decision on your end that shows you're accountable for what happened, not just responsible for it? Sinc…

Why are any of those things necessary? Are those people unable to get other jobs or go launch their own startup (putting that massive severance package to good use)? These risks come with the territory; there's a whole rest of the world outside of Silicon Valley where things move a lot slower; beyond that, there's still another rest of the world where people are literally struggling to put food in their mouths. Worki…

Given the labor market you could even argue those getting laid off are coming out ahead of those they're keeping. Getting laid off into a super tight labor market with that kind of severance package is almost like winning the lottery.

I want to make it clear that i'm 100% supportive of what Stripe is doing though. It's exceptionally generous and unorthodox to do this for your (soon to be former) employees.

Re: Stripe laying off around 14% of workforce

#220

Post by bumby » Thu, Nov 03, 2022, 2:57 PM UTC

joegahona wrote: post #151

bryant wrote: post #86

Earlier quoted context omitted.

They know what accountability is. That's why they never use the word. Yeah we know you're responsible for it, but how are you being held accountable for it? No one will remember in two years time, but my hope is it'll factor into candidates' decisions around whether to pursue a career with Stripe. If I've got senior executives without accountability, it's a distraction to my ability to deliver the product as well as…

Do you have an example handy of a CEO who has provided acceptable accountability in a situation like this?

Not a CEO, but I'm reminded of the incident on a Navy vessel that struck a fishing boat and resulted in a number of fatalities. The captain was actually off the vessel at the time and not in charge. He still resigned because he was accountable to the decision on who he left in charge.

(Tbf, I'm sure he was told to resign. But that's largely because the Navy has tried to institute a culture of accountability, albeit imperfectly)