Ok, 7%. With all the cost, I wonder if just stopping hiring and letting normal attrition rate play out would have had almost the same effect.
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Gitlab to lay off 7% of staff
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Re: Gitlab to lay off 7% of staff
#82Earlier quoted context omitted.
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That's beyond a crude example, that's just fucking gross. Maybe don't compare getting fired to being sexually assaulted?
I’ve edited it. I wanted to illustrate the extreme disconnect between their comms and how it’s received by affected people.
Re: Gitlab to lay off 7% of staff
#83Ok, 7%. With all the cost, I wonder if just stopping hiring and letting normal attrition rate play out would have had almost the same effect.
Attrition tends to happen with the most qualified individuals leaving for other companies. Attrition is not targeted or evenly distributed (depending on the goals). This can result in what would later be perceived as being lopsided compared to the layoff cut. For example (and purely made up), if part of the layoff was to cut back on marketing of the self hosted instances, then you would be looking to lay off marketin…
Why have a bulk "layoff" instead of just layoff the specific people whose work you don't need?
Re: Gitlab to lay off 7% of staff
#84Earlier quoted context omitted.
1. The federal interest rate is nearly at 5%. Any business operating depending on lines of credit are going to hurt (Source: https://www.federalreserve.gov/releases/h15/ ) 2. Consumer spending is down (Source: https://www.bea.gov/data/consumer-spending/main ). So you have the producers spending more to operate, and consumers spending less. This leads to an inevitable contraction in the economic output. Also known as…
This is the correct answer. The Fed rate is the main driver for these layoffs. The fed is trying to cause a slowdown in the economy (including layoffs) in order to temper inflation.
This isn't an explanation. The job market has been red hot over the past year, and the total of tech layoffs comprise a small fraction of overall job growth in the US. HN users think there is a recession because they are only focused on their particular industry, and refuse to look at what the actual economy is doing.
Re: Gitlab to lay off 7% of staff
#85Ok, 7%. With all the cost, I wonder if just stopping hiring and letting normal attrition rate play out would have had almost the same effect.
As someone who was recently laid off at one of these % cuts at another company, these cuts target specific groups, for instance people who have higher salaries. Well paid people won't just quit.
Re: Gitlab to lay off 7% of staff
#86Listened to a great podcast about layoffs yesterday ( https://hbr.org/podcast/2023/02/why-many-companies-get-layof... ) The takeaway is that layoffs are extremely trust destroying for employees NOT laid off, and in the end not clear they're a financial net positive. Both with direct and indirect costs (lack of engagement from employees, etc).
I've got already a message of a former colleague working on Gitlab. He wants to leave. He thinks thats better to negotiate a salary while in a job, than when you are desperate running against the clock. We are going to take him back.
Re: Gitlab to lay off 7% of staff
#87Ok, 7%. With all the cost, I wonder if just stopping hiring and letting normal attrition rate play out would have had almost the same effect.
You're missing the point - the point is to send a message, to employees and to the investors. That they're SERIOUS COMPANY that does the right thing. Follows the market. Listens to economy. That won't hear complaints from the entitled lazy overpampered engineering workers. That they need to get back to the factory and be like all other quiet labor. That HARD DECISIONS can be made without regret when bankers ask for t…
Exactly- Facebook laid off 7% of their staff and then followed it up with a $40 billion stock buy back. That's over $3,600,000 per laid off employee. The economy isn't the issue here, the companies know that since layoffs in mass are happening they can get away with it without taking the same reputational hit as if they did this on their own.
Re: Gitlab to lay off 7% of staff
#88Good on them for offering proper severance. At my company, we got 2wks and nothing else. Not even a thoughtful letter from the CEO. Nothing. (And this was a sizable tech company in the middle of an IPO).
Any reason to protect them here vs. sharing their name?
Re: Gitlab to lay off 7% of staff
#89That reads like an example of good communication, somehow not taking complete responsibility makes it even better.
Re: Gitlab to lay off 7% of staff
#90Ok, 7%. With all the cost, I wonder if just stopping hiring and letting normal attrition rate play out would have had almost the same effect.
I think there are several reasons to do it this way: - Effective number will be higher because some employees will be disgruntled because of the layoff event and will leave on their own. It's usually estimated that the effective number is twice as high - By doing a layoff you can quickly get rid of people who are overpaid. The attrition would take much longer. And with the regular performance review process you can o…
- tech labor cost is depressed most effectively when everyone is doing it
- everyone is doing it so it's that much easier to buck responsibility for the decision