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Mixpanel Lays Off 18 Employees

techcrunch.com

61–70 of 85 posts

Re: Mixpanel Lays Off 18 Employees

#61
post #19

Hey everyone, I am one of the founders at Mixpanel. Layoffs were tough on us, we did over hire a bit, and wanted to make the company more lean. We are deeply sorry for those that are no longer part of Mixpanel - they were our friends and co-workers that we continue to miss. I am happy to answer any questions that I can.

Curious to know which Sales reps got let go. SDR's or AE's? or a mix?

Re: Mixpanel Lays Off 18 Employees

#62
post #4

Earlier quoted context omitted.

As one of those free MixPanel users - their non-free plan is just too expensive. I eventually stopped using MixPanel altogether. In a choice between "only get a small subset of data" and "get all the data, but super super expensively", I decided I just don't care enough and opted for no data. Or rather, the combination of gAnalytics and a few others is Good Enough (tm).

I had the same experience, and I have to say that I'm torn in that I can see both sides. MixPanel doesn't want to screw around with $10 or $20/month plans, but I have no interest in paying $150/month. They want bigger customers than me, which is fine, but that also means that if and when I turn into a bigger customer, I might already be locked into a different solution.

We were one of these potential bigger customers willing to fork over thousands per month, but the unit cost was still too expensive for us. We tried to negotiate a better bulk rate, but their team was unresponsive and so we eventually went with another service that was more responsive to our needs. According to the article they only have ~3k paying customers, which means they only care about giant top tier customers willing to pay top dollar. Seems like a mistake to me, but what I only know from the potential client perspective.

Re: Mixpanel Lays Off 18 Employees

#63

Earlier quoted context omitted.

what package are you giving to the laid off?

Likely under NDA. Curious why you're curious :)

It's easy to pay lip service like "We are deeply sorry for those that are no longer part of Mixpanel". I would be interested more in "Show me the money" like talks.

Re: Mixpanel Lays Off 18 Employees

#64
post #54

Earlier quoted context omitted.

How are you investing a lot more if you let people go?

> He confirmed to TechCrunch that 18 people were laid off, mostly in sales. From the original article

Which is odd. Sales people don't cost much. They either pay for themselves or they're let go quickly. They're not usually let go in a group like that. Usually engineers are cut early; they cost more. Not trying to pick a fight, I've just been through layoffs before and this is how the finance team always justifies their cuts.

Re: Mixpanel Lays Off 18 Employees

#65
post #19

Hey everyone, I am one of the founders at Mixpanel. Layoffs were tough on us, we did over hire a bit, and wanted to make the company more lean. We are deeply sorry for those that are no longer part of Mixpanel - they were our friends and co-workers that we continue to miss. I am happy to answer any questions that I can.

Can you share the presentations you made to prospective investors? I'm particularly interested in how you estimate the market size for your product.

Re: Mixpanel Lays Off 18 Employees

#67
post #49
post #19

Hey everyone, I am one of the founders at Mixpanel. Layoffs were tough on us, we did over hire a bit, and wanted to make the company more lean. We are deeply sorry for those that are no longer part of Mixpanel - they were our friends and co-workers that we continue to miss. I am happy to answer any questions that I can.

Did you fire after they finished development or during? At what point did you realize that you did not have enough income to support that many? How much were you expecting to make by this time? You seem freindly but these questions are often left unanswered. Im usually led to believe companies are looking for contract workers but hire sallery because what is available isnt what they were looking for. Nothing personel…

From the article most of the people let go were in sales.

Re: Mixpanel Lays Off 18 Employees

#68
post #2

MixPanel has very generous free plan and many free users. Sales people were hired to try to convert free users into paying customers. Plan failed, sales people shown the door. This is why companies need to think really hard about freemium model. In case of MixPanel, many of their free users keep adjusting so they send just enough data to stay under free plan. They are probably not going to be persuaded by sales peopl…

This. We use Mixpanel's free plan and were recently hit up by their sales team. It's unfortunate because Mixpanel is an amazing product that we would be happy to pay for, but it's just too expensive relative to the value we get out of it.

I spent a day hooking up Mixpanel. Went over quota quickly and discovered that, instead of just dropping data when you go over quota, they lock your account and blackmail you to becoming a paying customer.

I can't remember my conversation with them, but it was clear they were a bunch of a-holes I didn't want to do business with.

I tell everybody I can to avoid them.

Re: Mixpanel Lays Off 18 Employees

#69
post #64
post #54

Earlier quoted context omitted.

> He confirmed to TechCrunch that 18 people were laid off, mostly in sales. From the original article

Which is odd. Sales people don't cost much. They either pay for themselves or they're let go quickly. They're not usually let go in a group like that. Usually engineers are cut early; they cost more. Not trying to pick a fight, I've just been through layoffs before and this is how the finance team always justifies their cuts.

If things are going bad, the engineers become assets for a potential aquisition. I've never seen engineers let go when things get dicey. Almost everyone else is let go first.

Re: Mixpanel Lays Off 18 Employees

#70
post #64

Earlier quoted context omitted.

Which is odd. Sales people don't cost much. They either pay for themselves or they're let go quickly. They're not usually let go in a group like that. Usually engineers are cut early; they cost more. Not trying to pick a fight, I've just been through layoffs before and this is how the finance team always justifies their cuts.

If things are going bad, the engineers become assets for a potential aquisition. I've never seen engineers let go when things get dicey. Almost everyone else is let go first.

That's probably a sign of frothy (dare I say bubble?) times. The opposite is usually the case. Cut the engineers and outsource the work was the M.O. for a decade+.
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