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Meta reportedly plans more job cuts

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Re: Meta reportedly plans more job cuts

#61

Post by a4a4a4a4 »

civicsquid wrote: post #44
ttyyzz wrote: post #36

In our large company, we often had a consulting firm that advised us in difficult times. Bottom line, they said that they think the company needs to deeply breath out and then breathe in again. After the severance payments, we were always urgently looking for people. For me, that was always proof that the managers had failed. But a disproportionately small number of managers had to leave the company.

I have no idea what will happen, but it sort of sounded like (from the limited reporting that's been done) they'll focus a bit more on managers / non-ICs this time -- if it happens at all. It is kind of nasty to think about the timing though. If true, they kept those managers around to do the very undesirable and time-consuming performance cycle (yearly review) work and will be letting them go now that the process ha…

I think Meta does reviews every 6 months, which makes it basically perpetual.

Re: Meta reportedly plans more job cuts

#62

Post by kypro »

ttyyzz wrote: post #36

In our large company, we often had a consulting firm that advised us in difficult times. Bottom line, they said that they think the company needs to deeply breath out and then breathe in again. After the severance payments, we were always urgently looking for people. For me, that was always proof that the managers had failed. But a disproportionately small number of managers had to leave the company.

Sounds like your company had no idea why they were doing the lay offs so just go rid of workers lower down the chain while keeping their friends.

I've seen the same thing happen in a large corp I've worked for directed by the advice of McKinsey.

The funny thing in this case though was that it was Accenture which advised them to hire the engineering department two years prior to help with innovation. Then after a couple of years of building out the team they advised them fire the whole department and outsource it to cut costs. The only people who remained were managers.

Re: Meta reportedly plans more job cuts

#63

Post by MichaelMoser123 »

ttyyzz wrote: post #36

In our large company, we often had a consulting firm that advised us in difficult times. Bottom line, they said that they think the company needs to deeply breath out and then breathe in again. After the severance payments, we were always urgently looking for people. For me, that was always proof that the managers had failed. But a disproportionately small number of managers had to leave the company.

Just out of curiosity: who is deciding where the cuts need to be made? I mean does the consulting firm prepare a detailed proposal or is it all decided by management in-house?

Re: Meta reportedly plans more job cuts

#64

Post by silisili »

qikInNdOutReply wrote: post #45
ttyyzz wrote: post #36

In our large company, we often had a consulting firm that advised us in difficult times. Bottom line, they said that they think the company needs to deeply breath out and then breathe in again. After the severance payments, we were always urgently looking for people. For me, that was always proof that the managers had failed. But a disproportionately small number of managers had to leave the company.

The people leave, but the culture of failure stays. Its a long way down, until in some run down office park, the last flickering neon light goes dark. Whats more interesting though is how the let go workers venture within there cultural spheres. Meta workers are more likely to go to places, that have adapted similar cultures, with AB Tests.

I witnessed this firsthand. I worked for a decent sized public company but large gov contractor in DC. Super smart people, I was learning a ton.

Then the layoffs started. In honesty, mostly OK decisions but a few really bad key ones. Then I watched the super smart people see the writing on the wall and leave, mostly to Google.

Then I felt stupid, if all the smart people left what did that make me? Well, it made me a big fish in a small pond, and I probably learned little of value over the next couple years, until I inevitably left too.

The company now is a sad shell of what it once was. I guess this type of story is all too common.

Re: Meta reportedly plans more job cuts

#65

Post by kypro »

xt00 wrote: post #16

Last time they did a big layoff the stock went up.. so I guess keep firing people as long as the stock keeps going up is the plan for say people who own lots of the stock.. I wonder who might benefit?

This is quite a cynical take. The logic probably isn't as simple as, "if we fire people, our stock will go up".

A lower stock price for a company like Facebook actually impacts its ability to operate. For one, Facebook as a technology company depends on being able to compensate their employees competitively with other tech companies and part of that involves stock based comp. If their stock price is constantly falling and trading at compressed levels then they have to give away increasingly larger percentages of the company to attract top talent. This obviously isn't sustainable.

The second problem is that a lower stock price impacts Facebook's ability to offer its stock in acquisitions. This means that they will either have to pay cash or take on debt as an alternative. And that's hard to do when you're pushing a large chunk of your free cashflow into projects like Reality Labs and investors are already concerned about cashflows.

Re: Meta reportedly plans more job cuts

#67

Post by KptMarchewa »

kypro wrote: post #65
xt00 wrote: post #16

Last time they did a big layoff the stock went up.. so I guess keep firing people as long as the stock keeps going up is the plan for say people who own lots of the stock.. I wonder who might benefit?

This is quite a cynical take. The logic probably isn't as simple as, "if we fire people, our stock will go up". A lower stock price for a company like Facebook actually impacts its ability to operate. For one, Facebook as a technology company depends on being able to compensate their employees competitively with other tech companies and part of that involves stock based comp. If their stock price is constantly fallin…

So they do 40 billion stock buyback out of concern of their employers wellbeing? Wow, did not know Zucc is so selfless.

Re: Meta reportedly plans more job cuts

#68

Post by kmac_ »

ttyyzz wrote: post #36

In our large company, we often had a consulting firm that advised us in difficult times. Bottom line, they said that they think the company needs to deeply breath out and then breathe in again. After the severance payments, we were always urgently looking for people. For me, that was always proof that the managers had failed. But a disproportionately small number of managers had to leave the company.

"Deeply breath out and then breathe in" It's hard to breathe in vacuum and I doubt that current layoffs will fill it (unless we are in a long recession). Next breath in can be very expensive.

Re: Meta reportedly plans more job cuts

#69

Post by kypro »

KptMarchewa wrote: post #67
kypro wrote: post #65

Earlier quoted context omitted.

This is quite a cynical take. The logic probably isn't as simple as, "if we fire people, our stock will go up". A lower stock price for a company like Facebook actually impacts its ability to operate. For one, Facebook as a technology company depends on being able to compensate their employees competitively with other tech companies and part of that involves stock based comp. If their stock price is constantly fallin…

So they do 40 billion stock buyback out of concern of their employers wellbeing? Wow, did not know Zucc is so selfless.

My understanding is that the employees are the largest shareholder of Facebook – so naturally they would be the largest beneficiary of any stock buy back.

But this was exactly my point in regards to the importance of the stock price for securing talent. The company is owned in large part by its employees and they will jump ship if they don't believe in the company's future.

Re: Meta reportedly plans more job cuts

#70

Post by KptMarchewa »

kypro wrote: post #69
KptMarchewa wrote: post #67

Earlier quoted context omitted.

So they do 40 billion stock buyback out of concern of their employers wellbeing? Wow, did not know Zucc is so selfless.

My understanding is that the employees are the largest shareholder of Facebook – so naturally they would be the largest beneficiary of any stock buy back. But this was exactly my point in regards to the importance of the stock price for securing talent. The company is owned in large part by its employees and they will jump ship if they don't believe in the company's future.

Sure, "employees" like Zucc or Sandberg.
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