News for hackers. Stuff that matters.

A comment on Stripe Layoff 14% of Workforce. Parent comment

Re:Stripe Layoff 14% of Workforce by ISL on Thursday November 03, 2022 @11:11AM (#33452241)
The 14 weeks of severance alone is probably worth ~$60 M [1]

Scrounging on the web suggests that Stripe may be EBITDA-profitable but not GAAP-profitable. $60M (perhaps double that with all the other benefits laid out here) is easily enough to delay GAAP profitability by a quarter or two. That may not seem like much, but it has a huge impact on investor sentiment.

[1] 0.148000200000*14/52

[ Parent | on HN ]
Re:Stripe Layoff 14% of Workforce by pbreit on Thursday November 03, 2022 @11:47AM (#33452841)
No it doesn't. Especially with a 14% reduction in by far the largest expenditure.
[ Parent | on HN ]
Re:Stripe Layoff 14% of Workforce by fredophile on Thursday November 03, 2022 @01:19PM (#33454269)
How does this delay GAAP profitability? They paid out 3.5 months severance and their full 2022 bonuses. If they hadn't laid these people off then in the next 3 months (1 quarter) they would have paid them 3 months salary and their full 2022 bonuses.
[ Parent | on HN ]
Re:Stripe Layoff 14% of Workforce by ISL on Thursday November 03, 2022 @01:51PM (#33454761)
It delays profitability relative to simply laying employees off with more-traditional severance.
[ Parent | on HN ]