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The founder also encouraged employees to take on what was effectively personal debt at an ~11B valuation when they only did $5.2M in Q1…
> founder also encouraged employees to take on what was effectively personal debt Do we have evidence to this encouragement?
I presume the Twitter braggery counts as encouragement.
First of all, there is no mention of what percentage of their workforce is being directly effected by this. I suspect it is not small. That aside, I fail to see this as anything other than this "company" taking advantage of the current environment to execute layoffs in a way that lets them blame "the market" rather than their own short-comings. We saw this in March 2020 as well. They overhired for the hype, and now a…
This kind of message feels more authentic to me if you put the big news in the first sentence, then cover logistics, then add any context you want. Seems better than making people wade through a lot of stuff about securing financial position, market conditions, etc etc to learn if they are losing their job.
The founder also encouraged employees to take on what was effectively personal debt at an ~11B valuation when they only did $5.2M in Q1…
Rumors going around on blind (posted by bolt employees) that over the course of a few rounds of layoffs it will be 30-50% of the total workforce. A lot of the initial layoff are software engineers. Apparently they only have 12-18 months of runway, and need to effectively double that. Current revenue is 40M. I guess this is the beginning of the tech washout. clings to large tech company job EDIT: 33% layoff today
2) Based on their recent fundraise (and assuming that they had 0 dollars at that point), that's basically a burn rate of 25-30M/m. I'm not sure I can event comprehend what that company could be spending that much money on.
Earlier quoted context omitted.
I never cease to be amazed at how people value companies based on revenue and not profit. Revenue without profit numbers tell you nothing about how well the company is doing.
> how people value companies based on revenue and not profit Profit is a closer abstraction to cash flows ( i.e. to the investor) than revenue, but it's still an abstraction. Investors looking at revenues and unit economics can sometimes--often--predict future profits and discount backwards, in the same way that a value investor can look at a company's profits and sometimes--less often, frankly--predict future cash f…
How can you have a successful business that spends more money than you make?
The founder also encouraged employees to take on what was effectively personal debt at an ~11B valuation when they only did $5.2M in Q1…
> There IS risk to the employee; they now have a real loan outstanding and 100% personal recourse, so if the common stock becomes less than exercise price, their personal assets are on the hook https://twitter.com/theryanking/status/1493390184897032201 HOLY CRAP. How is this even legal???
Generous severance is the ethical test of a CEO during a layoff. It softens the blow of a layoff immeasurably to provide 4-6 months of severance. If a CEO won't do it, the remaining employees should question the CEOs ethics, and ask themselves how they will be treated in the future. And if the business literally can't afford to do it (which is rare), then everyone should question the CEO's competence. As customers, w…