Tell HN: DigitalOcean is doing layoffs • Hacker News Board

Re: Tell HN: DigitalOcean is doing layoffs

#201

Post by colinmorelli » Wed, Feb 15, 2023, 5:08 PM UTC

gtirloni wrote: post #179

colinmorelli wrote: post #161

Earlier quoted context omitted.

It's not to make one quarter look better, it's to align the company with new market expectations. Investors now are expecting responsible cash burn, since capital has become significantly more expensive than before. Companies exchanging cash for market share are no longer as attractive. Profitability and sustainable growth are the new objectives (personally I wish this was always the goal and think the last 3-5 years…

Maybe this apply at startups but not to established and cash-rich companies like Google.

It absolutely applies at cash-rich companies as well. Losing money is losing money, no matter how much you have in the bank. I don't know why folks seem to keep thinking that having money means you can lose it forever, or that out of the kindness of the company's heart they can continue taking investor money it and funneling it back out to non-productive activities. For-profit companies exist to make money. Investors were willing to put that on hold for 5 years because interest rates were low enough to make borrowing cash effectively free, allowing you to trade cash in the short term for growth. That is no longer true, and they're no longer willing to do that.

Put more clearly: investors __do not want to invest__ in companies that are burning money right now, no matter their cash balance. Responsible, profitable growth is the goal. Your cash backstop is not relevant.

Re: Tell HN: DigitalOcean is doing layoffs

#202

Post by megous » Wed, Feb 15, 2023, 5:09 PM UTC

steve-atx-7600 wrote: post #45

arcturus17 wrote: post #9

Earlier quoted context omitted.

Very sorry to hear that, though you seem to have a fairly good outlook about it. Excuse me if it's callous to ask this at this time, but as I've been observing layoffs and been hearing that people are immediately shut down from their systems, I'm wondering: how do they communicate it to you if you can't access your email? Do they reach out to your personal email, call you, send you a letter? I might understand revoki…

I don't understand why it's necessary to treat employees with such sudden distrust. It is necessary to immediately cut off all access? These employees aren't being fired because they are suspected of perpetrating a crime, right? I I understand the need for layoffs, but I can't respect an organization/leadership that treats people so coldly. This behavior also affects non-fired employees that may have a need to ask kn…

I guess this happens when you're treated as a replaceable cog in a machine. I had so far a very different experience with small companies I worked for/with.

I guess something to plan for, if I ever apply for a 'cog' like position. Things like saving non-company contact information for people I might be interested in communicating with in the future, keeping copies of important information/documents on personal computer, etc.

Re: Tell HN: DigitalOcean is doing layoffs

#203

Post by stu2b50 » Wed, Feb 15, 2023, 5:10 PM UTC

slowmovintarget wrote: post #169

reisse wrote: post #142

Earlier quoted context omitted.

> I can understand it if you have brought on a lot of fat and you want to lean out your team and need an excuse but outside of that rather narrow situation This doesn't really seem to be a rather narrow situation. The tech companies were hiring like crazy for the past two years. Quick googling shows that DigitalOcean increased headcount by 31% last year. And contrary to the popular opinion here, for me this does soun…

One other factor in all of this is how companies used debt to sail through the pandemic. They took out loans, and now the bills are coming due. If you can't grow revenues to match interest payments, you often have to cut OpEx, and that seems to be what some companies are doing. Still sucks if you're on the receiving end, though.

I don’t think old loans are the problem. Corporate paper was dirt cheap during the pandemic, and the interest will still be dirt cheap now.

The fact that new loans are not cheap thanks to high interest rates is the more threatening factor.

Re: Tell HN: DigitalOcean is doing layoffs

#204

Post by kmshultz » Wed, Feb 15, 2023, 5:11 PM UTC

der-erlkonig wrote: post #48

Hearing that a lot of Community teams were let go, including the teams responsible for tutorials. Seems obvious DigitalOcean doesn't care about developers anymore. But this has been obvious for a while now. I guess their value "Our Community is bigger than just us" only matters when profits are up. Pour one out for DigitalOcean. It's the end of an era.

There is a newer portal within the DO Docs site (not the Community site) for similar tutorials:

https://docs.digitalocean.com/developer-center/

The content is created by Developer Advocates rather than Technical Writers and Editors. I am not sure if this team was impacted in the layoffs, but I suspect not, as this portal is a very new effort. It's only been around for a matter of weeks.

Time will tell whether developers and sysadmins will value this content as highly as they have always valued the Community tutorials.

Re: Tell HN: DigitalOcean is doing layoffs

#205

Post by danwee » Wed, Feb 15, 2023, 5:13 PM UTC

psyhigh wrote: post #58

I was laid off too from DigitalOcean this morning. Just an email that I was terminated effectively immediately. Don't companies give a month's notice in advance though?

In Europe yes. Depending on the country, you get between 1 and 3 months of notice by law.

Re: Tell HN: DigitalOcean is doing layoffs

#206

Post by jcadam » Wed, Feb 15, 2023, 5:15 PM UTC

bad416f1f5a2 wrote: post #124

stonecharioteer wrote: post #85

Earlier quoted context omitted.

what happens to your equipment? especially if you're remote?

The Helpdesk didn't know until after the RIF happened as some of them lost their jobs too. But every fired employee will get some return-labeled boxes shipped over to them, and are asked to pack up their equipment & send them back. Most companies who do these layoffs still count you as an employee for the duration of your severance, and your only real job requirement is to pack up your equipment and drive it to the U…

Last company I was laid off from (a few months ago) said they would deduct from your severance (I forget the amount, but was more than the Macbook was worth) if you didn't return it.

I did not test them on that and just returned it.

Re: Tell HN: DigitalOcean is doing layoffs

#207

Post by ROTMetro » Wed, Feb 15, 2023, 5:21 PM UTC

jpadkins wrote: post #91

MonkeyMalarky wrote: post #35

Earlier quoted context omitted.

Wild to think a country can have both too much employment and millions living below the poverty line.

Not everyone has the same skills and capabilities. Also the poverty line is a moving target. People with streaming TV and video game consoles are technically in poverty in the US. In the 1960-70s, access to those items would be only for ultra wealthy.

Yay they can stream while their kids don't have decent winter coats, shoes, or access to dental care. What progress.

Re: Tell HN: DigitalOcean is doing layoffs

#208

Post by ROTMetro » Wed, Feb 15, 2023, 5:23 PM UTC

sokoloff wrote: post #184

dcow wrote: post #100

Earlier quoted context omitted.

I never quite understood this. For things that are new and novel it makes sense for price to decrease over time, like TV tech (do note that OLEDs today aren't any cheaper so the category is not TVs it’s LCD TVs). But games/toys it does not. It implies quality is lower or efficiency of production is higher and with something like video games I really doubt efficiency is higher. This is why I welcome the $10 price hike…

I paid $3500 for a high quality 480p TV in 1997. A 4K OLED TV that will stomp all over that TV can be had now for under $1500. In nominal dollars, the TV fell by over 50%. In real dollars, it fell by over 75%.

Now do car prices.

Re: Tell HN: DigitalOcean is doing layoffs

#209

Post by jcadam » Wed, Feb 15, 2023, 5:44 PM UTC

der-erlkonig wrote: post #130

jpgvm wrote: post #121

I don't really get the motivation for this beyond personal greed on behalf of executives that are only seeking to prop up the share price in the short term. The market forces at work will force all technology companies down in valuation pretty much regardless, what is the difference of a few extra million market cap to handicap your ability to grow during the next expansion phase? I can understand it if you have brou…

Seems like sociopathic tendencies are a requirement for C-Suite Execs

Mr. Zorg from 5th element is basically the archetype for a MegaCorp CEO.

Re: Tell HN: DigitalOcean is doing layoffs

#210

Post by neurostimulant » Wed, Feb 15, 2023, 5:48 PM UTC

dopeboy wrote: post #175

bg0 wrote: post #170

Wont touch DO with a 50ft pole ever since they deleted all my data while I was on vacation because my credit card got flagged

This has happened to me too. They are strangely aggressive about it.

I think they already improved on that area. There is now a 1 month grace period if the automatic monthly billing charge failed due to insufficient card balance / expired card. I know because I intentionally kept minimum amount in my debit card for online subscriptions and sometimes digital ocean can't charge it due to insufficient balance.