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

Re: Stripe laying off around 14% of workforce

#631

Post by rightbyte » Thu, Nov 03, 2022, 7:45 PM UTC

winphone1974 wrote: post #583

naasking wrote: post #500

Earlier quoted context omitted.

> As a manager I find their really curious. I guess they were trying to avoid leaks. That's something I don't quite get. This adversarial relationship between employees and employers and management is stupid. Why not tell the workforce you have to cut costs, so if you're thinking of changing careers now is the time. Whoever is left presumably wants to stay.

This is a crazy approach. It signals the company is on trouble so the first to go will be your best, who all have lots of options. Anyone half decent will immediately start risk diversification by looking for other opportunities. Meanwhile nothing will get done by anybody and in the end your left with the dregs. Far better for everyone involved to do it quick rather than perfect. Those getting let go shouldn't see it…

The tell in advance approach is common place in countries with strong unions. The company might need to announce layoffs half a year in advance of the actual layoffs.

In effect noone will lose their job quickly unless there is a bankruptcy.

There is probably way less confusion in that way since you know that security guards wont escort you out any minute ...

Re: Stripe laying off around 14% of workforce

#632

Post by BayesianDice » Thu, Nov 03, 2022, 7:45 PM UTC

anyfoo wrote: post #601

mik3y wrote: post #469

Earlier quoted context omitted.

Yes, it's normal for layoffs to be planned and executed by a very small group, typically to avoid leaks or creating hysteria ahead of decisions being finalized. This in turn means less-than-perfect information is available, and so less-than-scientific cuts are made. "Ideally", your layoff strategy dictates some cuts regardless of performance: Say we're shutting down the self-driving car division, folding up recruitin…

> Say we're shutting down the self-driving car division, folding up recruiting, or choosing to accept the risk that comes with getting rid of the whole security team. Did you intend this to be a spit take? The sentence read about the same as “Say you’re taking a stroll around town, visit a few cafés, or decide to end the day by jumping into an active volcano.”

I'm guessing a reference to Patreon in September this year: https://techcrunch.com/2022/09/09/patreon-security-layoffs/

Re: Stripe laying off around 14% of workforce

#633

Post by gzer0 » Thu, Nov 03, 2022, 7:47 PM UTC

  * 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 regions where that’s not legally required).
  * Healthcare. We’ll pay the cash equivalent of 6 months of existing healthcare premiums or healthcare continuation.
  * RSU vesting. We’ll accelerate everyone who has already reached their one-year vesting cliff to the February 2023 vesting date (or longer, depending on departure date). For those who haven’t reached their vesting cliffs, we'll waive the cliff.

While layoffs in general suck, the terms of this one are quite substantially better than many other companies.

Re: Stripe laying off around 14% of workforce

#634

Post by [deleted] » Thu, Nov 03, 2022, 7:47 PM UTC

anyfoo wrote: post #601

mik3y wrote: post #469

Earlier quoted context omitted.

Yes, it's normal for layoffs to be planned and executed by a very small group, typically to avoid leaks or creating hysteria ahead of decisions being finalized. This in turn means less-than-perfect information is available, and so less-than-scientific cuts are made. "Ideally", your layoff strategy dictates some cuts regardless of performance: Say we're shutting down the self-driving car division, folding up recruitin…

> Say we're shutting down the self-driving car division, folding up recruiting, or choosing to accept the risk that comes with getting rid of the whole security team. Did you intend this to be a spit take? The sentence read about the same as “Say you’re taking a stroll around town, visit a few cafés, or decide to end the day by jumping into an active volcano.”

[deleted]

Re: Stripe laying off around 14% of workforce

#635

Post by throway20221103 » Thu, Nov 03, 2022, 7:49 PM UTC

Throwaway because of obvious reasons,

This process as Stripe reads as exceptionally cold and distanced to me. There's an ongoing downsizing at my workplace as well right now, and it's going a little like this:

* Change in strategy and its consequences announced together in all-hands

* Company strategy changed to focus less on rapid growth (something we'd been structured for) due to major changes in capital markets

* All personnell changes are made directly to support and enable this change in strategy

* No departures outside of C-suite had been determined at the point of announcement

* Immediately after announcement, groups of teams gathered in breakout sessions to learn of changes to their structure

* All changes are based on roles and not specific individuals

* Everyone gets to be considered for new roles if their existing role changes, or if they wish to change roles

* New managers to be decided about one week after announcement

* Changes to IC positions to be determined within two weeks after that

* Nobody will get a notice before a consultation meeting

* HR and leadership are holding all-hands about every third day during the process, for QA and updates

--

Mass layoffs by email just seems so immensely inhuman by this comparison. I wish everyone leaving Stripe as part of this all the best, and I hope you find great and inspiring opportunities EDIT: Formatting

Re: Stripe laying off around 14% of workforce

#636

Post by udev » Thu, Nov 03, 2022, 7:51 PM UTC

gzer0 wrote: post #633

* 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 regions where tha…

Makes sense. There is an expectation that they might want to welcome some of these people back at some point.

Re: Stripe laying off around 14% of workforce

#637

Post by newsclues » Thu, Nov 03, 2022, 7:52 PM UTC

cragfar wrote: post #577

pc86 wrote: post #485

Earlier quoted context omitted.

Is it "really weird," though? Layoffs, especially when you start talking about entire teams, divisions, products, etc. is about revenue, profitability, and righting the ship (or safeguarding the ship so you don't have to right it 6 months from now). Whether Jim got "exceeds expectations" or "greatly exceeds expectations" is irrelevant when an EVP needs to trim $12M off their budget and Jim's department lost $9M last…

A common sentiment you see on the internet (especially from younger people who haven't experience a tough labor market) is that only the low performers get laid off. So I can see how they think it's really weird if managers aren't involved.

If layoffs are occurring, companies or managers are going to want to cut poor performers or trouble employees at that time.

So if younger employees are saying it's cutting low performers, and the rest are left as the younger and lower paid workers to pick up the slack, where senior levels are cut indiscriminately or based on salary, because they are higher paid and the goal is to cut expensive workers.

Re: Stripe laying off around 14% of workforce

#638

Post by midhhhthrow » Thu, Nov 03, 2022, 7:52 PM UTC

jasmer wrote: post #202

This is the part I don't like. Stripe is a hugely successful company and they have no urgent material need to let people go. This is an optimization effort. I actually do believe that 'pruning' is a healthy thing for organizations, to enable them to be nimble and dynamic - however - obviously this comes at great social cost. The benefits of 'pruning' come at the cost of externalizing regular, creating real human chal…

It’s not about the people that get laid off.

It’s about the other 85%. Companies figure that a higher level of fear will increase people’s willingness to work overtime on weekends and nights too. Most people don’t even realize it but that’s whTs going on the employees subconsciously

Re: Stripe laying off around 14% of workforce

#639

Post by williamcotton » Thu, Nov 03, 2022, 7:52 PM UTC

suzzer99 wrote: post #463

heliodor wrote: post #88

Earlier quoted context omitted.

Who doesn't have cost increases?

A buddy of mine works for a company that makes industrial lighting. He said they raised prices 3x last year and their costs didn't go up at all.

What about their competitors? Can't they undersell them and capture most of their customers and still have great margins?

Re: Stripe laying off around 14% of workforce

#640

Post by LightG » Thu, Nov 03, 2022, 7:53 PM UTC

twblalock wrote: post #471

jasmer wrote: post #202

This is the part I don't like. Stripe is a hugely successful company and they have no urgent material need to let people go. This is an optimization effort. I actually do believe that 'pruning' is a healthy thing for organizations, to enable them to be nimble and dynamic - however - obviously this comes at great social cost. The benefits of 'pruning' come at the cost of externalizing regular, creating real human chal…

We expect our companies to be efficient and competitive -- and that is the correct expectation to have in a market economy! Giving people busywork will hurt companies, and thus the overall economy, in the long run. That will make everything worse, including school funding and homelessness and inequality. After all, if you want to redistribute wealth, you have to generate wealth! It would also mean companies would be…

Japan isn't the only other example of difference out there.

Odd that you should have chosen such an extreme example.