Dropbox announces 20% global workforce reduction • Hacker News Board

Re: Dropbox announces 20% global workforce reduction

#561

Post by njtransit » Wed, Oct 30, 2024, 5:03 PM UTC

tschellenbach wrote: post #551

The same forces that enable high tech salaries, also make layoffs more likely. - The market for talent is competitive. So companies bid up to the absolute max they can - The market for managers is also competitive. Creating dynamics that lead to larger teams and raises for team members - Companies allow things like remote work, which is a perk, but also has a lot of abuse in terms of how much work gets done The end r…

A somewhat sensible take, but the issue isn’t just healthcare. A lot of your life is based off of long-term, fixed cost cash flow. E.g. you can’t pay less on your mortgage just because you got fired. Even with savings, getting laid off is highly disruptive, and, if done as part of a broader downturn in the market, you may never recover the required cash flow to enable your lifestyle.

Re: Dropbox announces 20% global workforce reduction

#562

Post by layer8 » Wed, Oct 30, 2024, 5:03 PM UTC

azemetre wrote: post #509

Something weird I noticed about Dropbox: I cancelled my paid account two years ago. I had 5 terabytes of storage being used (mostly shitty concert vids and food pics). Everyday they email me telling me I’m over my limit. They always “threaten” to delete the data but it’s been two years since I cancelled. My Qs are: why are they hoarding my data for so long? Why would they want to do this? How cheap is storage for the…

If they delete your stuff, you almost certainly won’t resume your subscription. The cost of storage may be lower than the benefit from re-subscriptions, and possibly the cost of actually implementing and maintaining an automated deletion process in compliance with all jurisdictions.

Re: Dropbox announces 20% global workforce reduction

#563

Post by sangnoir » Wed, Oct 30, 2024, 5:04 PM UTC

s1artibartfast wrote: post #492

pixelatedindex wrote: post #435

Earlier quoted context omitted.

> Often that person's leadership wasn't the problem Then what is the problem? Ultimately you’re paid the big bucks for being held responsible. Why isn’t it never something like the CEO doesn’t get any stocks that year. I’m not saying he needs to leave the company but maybe he should take a substantial hit to his pay. He has enough money to put food on the table for many years, unlike the people who are let go where i…

>Why isn’t it never something like the CEO doesn’t get any stocks that year. Performance based compensation is absolutely standard for CEOs- Both in terms of options and stock grants.

And who sets the standards? Their CEO-buddies on the boards. None of them would dare rock the boat.

One of the failure modes of 401ks and investment funds are large investment pools that don't vote at AGMs, leaving boards largely dominated by CxOs, to their own devices.

Re: Dropbox announces 20% global workforce reduction

#564

Post by wbl » Wed, Oct 30, 2024, 5:05 PM UTC

njtransit wrote: post #561

tschellenbach wrote: post #551

The same forces that enable high tech salaries, also make layoffs more likely. - The market for talent is competitive. So companies bid up to the absolute max they can - The market for managers is also competitive. Creating dynamics that lead to larger teams and raises for team members - Companies allow things like remote work, which is a perk, but also has a lot of abuse in terms of how much work gets done The end r…

A somewhat sensible take, but the issue isn’t just healthcare. A lot of your life is based off of long-term, fixed cost cash flow. E.g. you can’t pay less on your mortgage just because you got fired. Even with savings, getting laid off is highly disruptive, and, if done as part of a broader downturn in the market, you may never recover the required cash flow to enable your lifestyle.

Avoid lifestyle creep! I have to say I'm bad at this myself: somehow it all adds up, while each individual expense doesn't look so bad.

Re: Dropbox announces 20% global workforce reduction

#565

Post by [deleted] » Wed, Oct 30, 2024, 5:05 PM UTC

RivieraKid wrote: post #238

elric wrote: post #90

I'm always a bit confused by profitable companies with (presumably) large reserves laying off lots of people. I get that they want to remain profitable. But sure 500ish people could be put to some use? A new product, a new market, a spinoff. Whatever? Are you telling me that no one in such a big, wealthy company of clever engineers has any use for a bunch of talented people?

Those employees were costing more than the value they were creating. If the marginal product of labor is lower than the marginal cost of labor, the company should reduce headcount. If higher, the company should increase headcount.

[deleted]

Re: Dropbox announces 20% global workforce reduction

#566

Post by sokoloff » Wed, Oct 30, 2024, 5:06 PM UTC

tschellenbach wrote: post #551

The same forces that enable high tech salaries, also make layoffs more likely. - The market for talent is competitive. So companies bid up to the absolute max they can - The market for managers is also competitive. Creating dynamics that lead to larger teams and raises for team members - Companies allow things like remote work, which is a perk, but also has a lot of abuse in terms of how much work gets done The end r…

> bit weird how people feel so differently when they get fired

That doesn't seem the least bit weird to me. If I choose to leave a job (or relationship), I could quite sensibly feel differently if that same job (or relationship) chooses to leave me.

Re: Dropbox announces 20% global workforce reduction

#567

Post by jrochkind1 » Wed, Oct 30, 2024, 5:06 PM UTC

yieldcrv wrote: post #14

skwee357 wrote: post #6

Being sorry - check Takes full responsibility - check Layoffs are still there

how would you like the next CEO to handle it, for reference?

Take a pay cut. Return last year's mega bonus.

Re: Dropbox announces 20% global workforce reduction

#568

Post by stevenAthompson » Wed, Oct 30, 2024, 5:06 PM UTC

mrguyorama wrote: post #529

realusername wrote: post #35

Earlier quoted context omitted.

A 20% layoff means either the market changed very very quickly or something went terribly wrong in the company strategy. Here it's the second scenario and I'd expect the CEO to be on shaky grounds after such bad results. There needs to be more explanation on where the CEO screwed up that badly and the consequences for the management.

At the very very least, they should be explaining how Dropbox is suddenly a 20% smaller company, because either that means the market has contracted by 20%, or Dropbox has shit the bed as a competitive entity in said market. Both options should directly imply that the CEO should earn less. Either you're running a smaller, simpler company, or you sucked at your job. Eat the loss.

They aren't 20% smaller, they stopped growing. Some of those positions existed to help them continue with growth, which now isn't happening.

They reached market saturation, which isn't the same thing as failing.

Re: Dropbox announces 20% global workforce reduction

#569

Post by miningape » Wed, Oct 30, 2024, 5:07 PM UTC

tschellenbach wrote: post #551

The same forces that enable high tech salaries, also make layoffs more likely. - The market for talent is competitive. So companies bid up to the absolute max they can - The market for managers is also competitive. Creating dynamics that lead to larger teams and raises for team members - Companies allow things like remote work, which is a perk, but also has a lot of abuse in terms of how much work gets done The end r…

> Your manager doesn't get upset when you leave, bit weird how people feel so differently when they get fired.

Really? You think its weird that someone leaving impacts that person more than their manager, team, or company?

A manager doesn't care that you leave because he still gets to bring home a salary, all they have to do is hire another person and maybe cut back on scope for a little while. When someone is layed off or fired they have to go find a new job, their income streams dry up, and are forced to rely on savings. People often have long term financial commitments they cannot back out of, and not knowing how you'll make rent, if you can afford your child's school fees, or even maybe having to cut back on how much you eat, _is stressful_ and emotionally taxing.

Are you fucking kidding me? "Which is a bit weird" I'll tell you what's weird: management who doesn't understand that their employees rely on them more than they rely on the employee.

Of course its fine when someone chooses to leave their job, they've made contingencies and planned around it. Whether it's through savings, another job, or the lottery, people have at least some idea of their plan when they leave a job.

Re: Dropbox announces 20% global workforce reduction

#570

Post by ghusto » Wed, Oct 30, 2024, 5:07 PM UTC

sk11001 wrote: post #378

kraig911 wrote: post #183

Dropbox my one critique is can you please make it affordable again. I just can't justify the cost as there are cheaper services out there. I don't care about PDF signing etc. I fear OneDrive/Google Drive are eating you lunch because it's a hard sell to be competitive against them price wise.

Steve Jobs was right - Dropbox is a feature, not a product.

It's a product that I was willing to pay for (until I required native E2E encryption). _iCloud Drive_ is a feature, mostly — aside from the fact that you still have to pay for it to be useful, so kind of still a product.

Steve Jobs was wrong about many things, and this was one of them.