Probably getting forced to trim the fat by their parent company, Amazon.
Twitch.tv Lays of 400 Employees
161–170 of 240 posts
Re: Twitch.tv Lays of 400 Employees
#162> Like many companies, our business has been impacted by the current macroeconomic environment, and user and revenue growth has not kept pace with our expectations. In order to run our business sustainably, we’ve made the very difficult decision to shrink the size of our workforce. Let's just take a moment to admire this paragraph. > "our business has been impacted by the current macroeconomic environment" There's th…
> I can understand layoffs when your business is running at a loss, not when it's growing.
Do you revisit your personal budget only once you run out of money, or once your income changes?
Re: Twitch.tv Lays of 400 Employees
#163> Like many companies, our business has been impacted by the current macroeconomic environment, and user and revenue growth has not kept pace with our expectations. In order to run our business sustainably, we’ve made the very difficult decision to shrink the size of our workforce. Let's just take a moment to admire this paragraph. > "our business has been impacted by the current macroeconomic environment" There's th…
They're culling the less performant employees and use the current economic crisis as a PR excuse.
Re: Twitch.tv Lays of 400 Employees
#164Earlier quoted context omitted.
> Wait, I thought revenue was growing! How is that not sustainable? If you just leave costs where they are and let revenue grow, you are by definition sustaining/growing the bottom line. Come on man, if you don't understand how a business can be showing signs of unhealthiness while still increasing revenue then don't post. That's such a trivial superficial analysis of reality. I'm not going to pretend to know or unde…
Or, the investors want their returns. If you don't understand how perfectly healthy business can be gutted just because investors want better number on next year's sheets and don't care about long term then don't post.
But we are in fact in the early stages of a slow train-wreck of a global economic meltdown.
Investors wanting value out of stock is one thing, especially if the stock has a dividend. But this is not a dividend stock, so that tired trope doesn't apply. Also, this is Amazon, famous for channelling revenue back into the business, effectively making the stock neutral value in a fiat sense. It would be one thing if it were any other company, but it's Amazon. The only value in the stock is the perceived value of the stock holders, and Amazon doesn't play that value-game like other corporations.
Considering they previously cut 19K jobs, and this is just a piece of the additional 9K job cuts across all business units... it strongly indicates Amazon is preparing for an even worse economy to come. Consider the Biden Administration printed about ~$10 trillion USD since 2020, and if Inflation were comparable to Dune sand-worms, this would be the Shai Hulud of Inflation. It takes a while for the economy to realise everyone is being payed less, and prices need to rise in accordance with increasing costs, but oh wait... people are still paid the old income they always earned, and so they buy less stuff, and around and round the cycle goes.
Amazon isn't selling as much as they used to, so please with all due respect... get the fuck out of here with the ShArE hOlDeRs WaNt VaLuE nonesense. A bunch of corporations are cutting jobs, because payroll is typically the #1 cost of doing business, for any business.
Re: Twitch.tv Lays of 400 Employees
#165> Like many companies, our business has been impacted by the current macroeconomic environment, and user and revenue growth has not kept pace with our expectations. In order to run our business sustainably, we’ve made the very difficult decision to shrink the size of our workforce. Let's just take a moment to admire this paragraph. > "our business has been impacted by the current macroeconomic environment" There's th…
Here's a better version: > Everyone else is firing people. So it seemed like a good time to fire some people. > We found 400 people to fire, which sounded like a good number because it's not as big as 500. None of them seemed to be doing anything useful, so we fired them. > The product will not be affected and as a user you will notice no difference whatsoever. > Signed, some anonymous guy who took over after our CEO…
> there’s a looot of employees here we don’t like. Instead of going through the whole PIP/HR dance we’ve decided to give every manager a blank check to fire a few of you. The whole ‘economy’ situation is a perfect cover to do this now. Adios.
Re: Twitch.tv Lays of 400 Employees
#166Earlier quoted context omitted.
The truth of the matter is that companies aren't monetarily incentivized to avoid layoffs. Layoffs cost almost nothing. Companies aren't required to pay full salaries or provide any healthcare/benefits for any reasonable period of time after a layoff. I think even the 3 month notice period from the WARN Act is a pretty crap amount of time to provide for employees who have been terminated. For a software company espec…
"The truth of the matter is that companies aren't monetarily incentivized to avoid layoffs." Very nicely put. Fixing this will help lot of employees.
How do we fix that? Require companies to pay a large severance? Then companies will be heavily disincentivized to hire in the first place due to the risk.
Re: Twitch.tv Lays of 400 Employees
#167> Like many companies, our business has been impacted by the current macroeconomic environment, and user and revenue growth has not kept pace with our expectations. In order to run our business sustainably, we’ve made the very difficult decision to shrink the size of our workforce. Let's just take a moment to admire this paragraph. > "our business has been impacted by the current macroeconomic environment" There's th…
Here's a better version: > Everyone else is firing people. So it seemed like a good time to fire some people. > We found 400 people to fire, which sounded like a good number because it's not as big as 500. None of them seemed to be doing anything useful, so we fired them. > The product will not be affected and as a user you will notice no difference whatsoever. > Signed, some anonymous guy who took over after our CEO…
It’s easy to comment like this from afar, but would you actually send this message if you were the CEO?
Re: Twitch.tv Lays of 400 Employees
#168For some perspective, twitch generated $2.6 billion in revenue in 2021 and $2.8 billion in 2022. They've seen nothing but increased revenue over time.
So they took in an extra 200 million $ in revenue in 2022, great. Though that doesn't necessarily mean they'll continue to take in more revenue given that 2022 was the year lockdowns pretty much disappeared everywhere and I'm guessing Twitch's model benefits from people being stuck at home.
But let's ignore that, and say they'll keep making that 2.8 billion. Did they hire 1000 new employees between 2021 and 2022? Because if so, that probably means they're making less profit even with an additional 200 million $ in revenue. Assuming the fully loaded cost per employee is ~200K/year, which according to Levels is on the low end (their L4s make 209K, L5s and up make much more)
Couple that with investors now clamouring for returns, and from the business side you can see why reducing their cash out-flows is at least appealing.
Re: Twitch.tv Lays of 400 Employees
#169> Like many companies, our business has been impacted by the current macroeconomic environment, and user and revenue growth has not kept pace with our expectations. In order to run our business sustainably, we’ve made the very difficult decision to shrink the size of our workforce. Let's just take a moment to admire this paragraph. > "our business has been impacted by the current macroeconomic environment" There's th…
> Wait, I thought revenue was growing! How is that not sustainable? If you just leave costs where they are and let revenue grow, you are by definition sustaining/growing the bottom line. Come on man, if you don't understand how a business can be showing signs of unhealthiness while still increasing revenue then don't post. That's such a trivial superficial analysis of reality. I'm not going to pretend to know or unde…
> Come on man, if you don't understand how a business can be showing signs of unhealthiness while still increasing revenue then don't post.
I wasn't aware of this criteria, is that somewhere in the guidelines? All I'm seeing is stuff about civility and being decent.
Re: Twitch.tv Lays of 400 Employees
#170> Like many companies, our business has been impacted by the current macroeconomic environment, and user and revenue growth has not kept pace with our expectations. In order to run our business sustainably, we’ve made the very difficult decision to shrink the size of our workforce. Let's just take a moment to admire this paragraph. > "our business has been impacted by the current macroeconomic environment" There's th…
> I can understand layoffs when your business is running at a loss, not when it's growing. Do you revisit your personal budget only once you run out of money, or once your income changes?
Do you also employ people and managers and use your personal budget solely to make profit instead of buying food? Stop the weird analogies