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senko | 3 days ago
* Severance packages upfront because realistically that's what everyone worries about first.
* Reasoning second. I appreciate the one clean cut vs prolonged bleeding.
* Owning the decision and respecting the people that got you there. Opting for an awkward allhands vs breakup-via-text-message.
* Giving people a chance to say goodbye.
Not gonna go into strategic analysis of this, or Jack's leadership style in general.
But realistically, you can't pen a better (or, well, less bad) layoff announcement.
shaftway|2 days ago
michaelcampbell|12 hours ago
Bayko|2 days ago
[deleted]
danpalmer|3 days ago
That's a false dichotomy, you could reduce headcount via attrition which is better in some ways.
There's also no reasoning on product impact. Is the strategy to cut products that aren't making money? Is the strategy to cut 40% across everyone because everyone can go faster?
> Owning the decision
Does it? It came across to me as an inevitability of AI, not "we over-hired". Layoffs are always a mis-management issue, because the opposite (hiring) is a management issue. If management failed to see where the market was going and now needs a different workforce, that's still a management issue.
> respecting the people that got you there
There's words, and there's money, and on these it's pretty good. But there's also an empathy with the experience they're about to go through and I'm not sure there's much of that here beyond the words. To do this well you'd need to think through what folks are about to go through and look for ways you can positively impact that beyond actions today. I've seen some companies do this better, helping teams get re-hired elsewhere, splitting off businesses to sell to other companies, incubating startups, there are lots of options. Hard, especially at this scale, but possible.
> But realistically, you can't pen a better (or, well, less bad) layoff announcement.
And this is the crux of my point, I really think you can. This was a good one, one of the better I've seen, but it's still within the realm of SV companies laying people off. In some companies, countries, industries, this would look very different, and better.
vessenes|2 days ago
belval|2 days ago
I don't think reducing via attrition is better for the company, for the employees 100%, but attrition would be your people moving to other companies and retirement. It means that you are effectively bleeding your people with options (usually above average) and those with the most experience in favor of "the rest".
weird-eye-issue|2 days ago
> That's a false dichotomy, you could reduce headcount via attrition which is better in some ways.
That's the same thing. And they can't control which roles are lost. It's the worst thing for the company itself and those remaining.
marcyb5st|2 days ago
On paper you're right, but in reality while doing so you give the incentive to higher-ups to set in place measures that make the life of their underlings atrocious. Mandatory RTO for no clear reason, jumping through hoops to get anything done, cut to budgets, ... . At least that what I experienced and talking with friends that was the case for them as well.
giarc|2 days ago
I disagree. Slow bleeding just means everyone in the company walks around thinking they are next, never knowing when the next set of cuts are going to happen or when they are finished. Cutting 40% is a quick blow, and everyone that is left knows they are safe.
grey-area|2 days ago
Oh and the bit where he claims AI efficiencies are the reason.
If I had to do this to a company I’d built I’d fire myself too. It’s an admission of a massive failure of leadership.
daxfohl|2 days ago
kortilla|2 days ago
squidbeak|2 days ago
arzke|2 days ago
donatj|2 days ago
My initial gut reaction was "he can't even be bothered to use his shift-key while dramatically altering 4,000 people's lives?"
It's just too casual for what is happening.
grey-area|2 days ago
matsemann|2 days ago
daegloe|2 days ago
OrangeMusic|2 days ago
blitzar|2 days ago
malshe|2 days ago
slantedview|3 days ago
jtokoph|3 days ago
teyopi|3 days ago
rustystump|3 days ago
“Yall gonna get money and most yall fired. My bad woops”
d--b|2 days ago
Canning people when you do well is just a way to milk the cow that others raised for you. Plus it shows a blatant lack of imagination and foresight.
I just hope the remaining employees realize they’re in an ejectable seat and stop working for people like that. It’s only a matter of time the founders sell to Bending Spoons for a final paycheck and everyone else is out.
acjohnson55|2 days ago
I can imagine creating a system designed to allocate profits to a broader set of stakeholders, but that's not the system we have.
make_it_sure|2 days ago
yellow_lead|2 days ago
turtlesdown11|2 days ago
skywhopper|2 days ago
malfist|2 days ago
Now, why he keeps having to relearn the lesson I couldn't tell you. It's a mystery
oytis|2 days ago
AtNightWeCode|2 days ago
meerab|2 days ago
Trufa|3 days ago
@grok We're slashing the company from 10k to under 6k people because AI plus tiny teams now let us do the same work with way fewer bodies, and the CEO would rather gut half the staff in one brutal move than bleed out slowly over years.
I am curious why this got so popular, it really is the same thing, am I missing something? Is it because of elon/jack dynamics?