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Why is every layoff 10-15%?

blog.eladgil.com

231–240 of 263 posts

Re: Why is every layoff 10-15%?

#231
post #187

Is going back to the office such a huge thing in other countries? Here in Germany almost nothings changed from the main COVID time in terms of home office. It seems like our standard of working has transformed and will not revert back.

Yes and no. When COVID more or less "left" corporate culture, a lot of US businesses wanted to go fully back to work or to make remote work a benefit, i.e., you'd take cuts elsewhere for the privilege to work remotely/from home. While some of it is likely power-tripping on the part of managers, I suspect some of it is more complex involving expensive building leases and trying to justify costs, fear of "what happens…

In office work is definitely a bit of a cargo cult, despite the evidence that companies did just fine.

The quality of the data senior leaders typically use to make business decisions like this are usually either very poor and would never pass any kind of statistical or scientific bar, or non-existent. It's usually just a gut feeling and they roll with it. Managers just usually have no idea how to manage a remote team and go about replicating the physical office in digital form.

Re: Why is every layoff 10-15%?

#232
Because to investors, 10-16% shows you’re cutting fat. 25% or more shows you’re cutting off limbs and the firm is in distress. If I owned the second I would probably look to sell it.

Re: Why is every layoff 10-15%?

#233

Earlier quoted context omitted.

> but many CEOs will tend to believe that things will go better with everyone back in the office Many of us SWEs believe the same!

What makes you think this? I haven't observed any advantages to an office beyond overexposing the company to real estate (not really an advantage) - there is nothing I could do in person that I haven't been able to do faster in MS Teams (and better - now I have a written record and recording of everything). Another advantage of remote is that nobody ruins my train of thought by tapping me on the shoulder and asking s…

Take this from someone who works effectively fully remote except for a couple days a month that I go into the office: Believe it or not, some people like their coworkers and want to eat lunch with them. Humans have been hanging out with each other since (checks math) the beginning.

Re: Why is every layoff 10-15%?

#234
post #149

Earlier quoted context omitted.

I didn't conclude it wasn't a 'successful' acquisition. Just a case study of what not to do. Even if it somehow ends up in a place it gets spun as being a success, only Elon fanboys are saying "4d chess! Brilliant!"; anyone with an ounce of sense recognizes how dumb everything about this has been.

You're being downvoted because it's too soon to judge so harshly. You may be just as biased in the opposite direction as the fanboys. There's been a lot of dumbness and silliness involved but it's pretty hard to assume that a random HN commenter is a better businessman than Musk.

So that comment is currently sitting at 1, so upvotes balancing downvotes. The original +12.

But I really don't care either way; to your point - even Musk didn't want to acquire Twitter once he sobered up to the fact he was in too deeply to pull out. It's just his brilliant business acumen meant he went into it waiving due diligence. Which, yes, this random HN commenter knows better than to do, for any company, let alone a social media company.

Re: Why is every layoff 10-15%?

#235
post #108
post #61

Earlier quoted context omitted.

What happens to people who were hired as fully remote during pandemic?

At least at Twitter, sounds like they are in trouble.

Yeah, they’re all effectively fired unless they have the flexibility to pack a back and fly to SF or another Twitter office on Monday, at least from what it sounded like on the leaked call (there was mention of special circumstances but that sounds like only for people in emergency situations). Kinda fucked up.

Re: Why is every layoff 10-15%?

#236
post #14

Earlier quoted context omitted.

This reminds me of a story I heard about Steve Wozniak's time at HP: They were going to lay off 10% of the staff, but instead they decided to reduce everyone's pay by 10% and give them an extra day off every two weeks.

The last company I worked for did something similar. It cut everyone’s salary (60 people) to avoid a layoff right after Covid hit. As soon as they did, I started looking for another job. Your best employees can leave and you are left with the “Dead Sea Effect”

Why did you leave? Was it because you weren’t being paid enough or purely principle (or both)?

Re: Why is every layoff 10-15%?

#237

Earlier quoted context omitted.

Ymmv, but for me work from office is far more productive than from home. It also allows a very effective context switch so you don't feel like working when you are at home.

It’s easy for me to context switch. I have a separate office. I only go in there to work.

Yeah, but not everyone has the luxury to have a fully separate office room/space for themselves

Re: Why is every layoff 10-15%?

#238
post #228

Earlier quoted context omitted.

But, don't you feel engaged to come to a place with such inspirational artwork? Truly, a company that cares. /s

On the other hand, would you feel inspired and happy about going to a workplace with nothing on the walls or better still, the last company's name on them? If the place feels dingy or like the owners don't care to make it look nice, I doubt it has a positive effect on productivity and employee retention.

Yes? I am a fairly ascetic person (nothing on my walls at home), so that kind of stuff has never been particularly relevant to me. So long as the place is clean and has bright lights, I do not particularly care about the overall ambiance to the place. Far more relevant is my actual work configuration: privacy, noise, visual distractions, etc.

Re: Why is every layoff 10-15%?

#239
post #159

Earlier quoted context omitted.

More than 15% often means a change in the business model.

Look at Facebook's employee curve in the article - it looks pretty much exponential. If they lay off 50% of their employees, they'll be at 2018 levels when they had essentially the same business model.

Their revenue had also exponentially grown (doubled between 2018 and 2021) even though IDFA kicked in, which pours huge complexity on Facebook's business. Unlike people's typical tech stereotype, revenue growth is not something automatically granted with "the right technology"; you need product management, sales and and engineering infrastructure just to keep it.

Re: Why is every layoff 10-15%?

#240

Earlier quoted context omitted.

That has no bearing whatsoever? That link itself says "Mr. Musk's team brushed aside the suggestion", meaning that didn't effect who was let go, but -even if it did-, it still would have no bearing, since regardless of who made the decision, or for why, the fact they're being sought after to be rehired so soon means your initial statement "nobody is firing productive workers" is false. Someone fired workers who were…

it does however suggest that some people might have been fired for reasons other than merit

First off, it doesn't apply, given that the very link you included explicitly states that while there was a recommendation from execs and HR, Musk's team chose not to follow it. So it's irrelevant.

Second, even if those recommendations were followed...that's an argument -against- your initial statement that "nobody's firing productive workers." I.e., if they were fired for reasons other than merit, than -somebody fired productive workers-.

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