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DigitalOcean Profits Up, More Stock Buybacks, but lays off 11% anyways

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Re: DigitalOcean Profits Up, More Stock Buybacks, but lays off 11% anyways

#11

Post by bhhaskin »

cyanydeez wrote: post #4
hellojesus wrote: post #2

Going to say the obvious, knowing nothing about this situation: If the company is public, it has a fiduciary duty to it's shareholders to maximize profits, which means that management should act to reduce the workforce if they feel that portion returns less in profit than it costs to keep on board. Private companies have more leeway, unless of course they have contractual obligations to uphold with private investors.…

They're firing people cause of a meme, not cause anyone made a business case as you are implying. A meme: that times are tough and firing people will free up capital. It's a meme my boy. people are losing their jobs cause CEOs need to "make tough decisions". They're not doing business evaluations. They're following the herd. A meme.

They are laying people off because now is the time to do it so people don't think twice about it. Best way to remove dead weight with little consequence.

Re: DigitalOcean Profits Up, More Stock Buybacks, but lays off 11% anyways

#12

Post by ecf »

v0idzer0 wrote: post #8

This is dramatic even for Twitter

Is it though? Pretty understandable to be pissed off that all these companies are collecting record profits, doing layoffs, and then immediately buying back stock.

Something is fundamentally broken.

Re: DigitalOcean Profits Up, More Stock Buybacks, but lays off 11% anyways

#13

Post by s1artibartfast »

ecf wrote: post #12
v0idzer0 wrote: post #8

This is dramatic even for Twitter

Is it though? Pretty understandable to be pissed off that all these companies are collecting record profits, doing layoffs, and then immediately buying back stock. Something is fundamentally broken.

Paying workers you don't need and don't help your bottom line is fundamentally broken.

They aren't running a charity for jobs program.

Re: DigitalOcean Profits Up, More Stock Buybacks, but lays off 11% anyways

#14

Post by s1artibartfast »

cyanydeez wrote: post #4
hellojesus wrote: post #2

Going to say the obvious, knowing nothing about this situation: If the company is public, it has a fiduciary duty to it's shareholders to maximize profits, which means that management should act to reduce the workforce if they feel that portion returns less in profit than it costs to keep on board. Private companies have more leeway, unless of course they have contractual obligations to uphold with private investors.…

They're firing people cause of a meme, not cause anyone made a business case as you are implying. A meme: that times are tough and firing people will free up capital. It's a meme my boy. people are losing their jobs cause CEOs need to "make tough decisions". They're not doing business evaluations. They're following the herd. A meme.

Seems like the meme based leadership is working if they are bringing in record profits and conducting stocks Buybacks.

Feel free to remind me if they go into bankruptcy

Re: DigitalOcean Profits Up, More Stock Buybacks, but lays off 11% anyways

#15

Post by x11vnc4life »

cyanydeez wrote: post #4
hellojesus wrote: post #2

Going to say the obvious, knowing nothing about this situation: If the company is public, it has a fiduciary duty to it's shareholders to maximize profits, which means that management should act to reduce the workforce if they feel that portion returns less in profit than it costs to keep on board. Private companies have more leeway, unless of course they have contractual obligations to uphold with private investors.…

They're firing people cause of a meme, not cause anyone made a business case as you are implying. A meme: that times are tough and firing people will free up capital. It's a meme my boy. people are losing their jobs cause CEOs need to "make tough decisions". They're not doing business evaluations. They're following the herd. A meme.

A bunch of emotionally stunted amature stoics who heard a ted talk about decimating legions have a go at it for themselves

Re: DigitalOcean Profits Up, More Stock Buybacks, but lays off 11% anyways

#17

Post by ngetchell »

s1artibartfast wrote: post #13
ecf wrote: post #12

Earlier quoted context omitted.

Is it though? Pretty understandable to be pissed off that all these companies are collecting record profits, doing layoffs, and then immediately buying back stock. Something is fundamentally broken.

Paying workers you don't need and don't help your bottom line is fundamentally broken. They aren't running a charity for jobs program.

Maybe the jerks that hired, and subsequently fired, those workers should be fired first?

Re: DigitalOcean Profits Up, More Stock Buybacks, but lays off 11% anyways

#18

Post by Apocryphon »

s1artibartfast wrote: post #14
cyanydeez wrote: post #4

Earlier quoted context omitted.

They're firing people cause of a meme, not cause anyone made a business case as you are implying. A meme: that times are tough and firing people will free up capital. It's a meme my boy. people are losing their jobs cause CEOs need to "make tough decisions". They're not doing business evaluations. They're following the herd. A meme.

Seems like the meme based leadership is working if they are bringing in record profits and conducting stocks Buybacks. Feel free to remind me if they go into bankruptcy

Perhaps record corporate profits is not something society should optimize for if it accompanies large amounts of disruption in the lives of people.

Re: DigitalOcean Profits Up, More Stock Buybacks, but lays off 11% anyways

#19

Post by Apocryphon »

s1artibartfast wrote: post #13
ecf wrote: post #12

Earlier quoted context omitted.

Is it though? Pretty understandable to be pissed off that all these companies are collecting record profits, doing layoffs, and then immediately buying back stock. Something is fundamentally broken.

Paying workers you don't need and don't help your bottom line is fundamentally broken. They aren't running a charity for jobs program.

A point as banal as it is unhelpful. Perhaps if companies didn’t act like charities during good times by promising workers lavish compensation and security, entangling in more workers than necessary, and then pulling the rug from under them during bad times, then this false expectation would have never arisen.

Re: DigitalOcean Profits Up, More Stock Buybacks, but lays off 11% anyways

#20

Post by syspec »

steponlego wrote: post #10

Lots of ESG hires who aren't doing shit other than organizing "events" and finding issues to complain about, this is dead weight.

Doesn't seem like that, most of these were engineers

https://www.crn.com/news/cloud/digitalocean-layoffs-engineer...

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