Re:Stripe Layoff 14% of Workforce
by adamsmith143 on Thursday November 03, 2022 @12:15PM
(#33453294)
I find it interesting that they're saying they're doing so bad financially they need to cut 14% of their workforce but are also doing well enough they can pay 14% of their payroll for 3.5 months of no work + Bonuses + PTO + Stock + 6 Months of Healthcare? Doesn't seem to add up
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Re:Stripe Layoff 14% of Workforce
by admax88qqq on Thursday November 03, 2022 @12:41PM
(#33453680)
How much do you think 14% of their workforce costs to keep employed for another year vs 3.5 months + bonuses + pto + stock + 6 months healthcare?
Do you think their doing it for shits and giggles? Or do you think that they've actually done the math?
Tone aside, asking if op thinks that have done the maths is an interesting question.
How did Stripe end up with expenses they need to reduce if they did the maths? Yes, their world changed, but at some point they made choices that were incorrect and here they are.
Morale for the remaining employees would drop and attrition would jump if they all watched their fellow employees get kicked to the curb by their current employer.
They take the hit but the payouts eventually end. What’s described would not have been that uncommon for big companies back in the day. They take a financial in a quarter and they hope they can move on with a lower cost structure. Often doesn’t play out well of course.
Re:Stripe Layoff 14% of Workforce
by dragonwriter on Thursday November 03, 2022 @02:53PM
(#33455631)
Much of the severance is legally mandated pay in lieu of notice for a mass layoff, the rest is (usually, and presumably in this case) an inducement for a release of any potential claims and to sign non-disparagement agreements.
Of course, its presented as largesse to the recipients, but its very much not.
Re:Stripe Layoff 14% of Workforce
by striper123 on Thursday November 03, 2022 @07:35PM
(#33459493)
It's simple, they aren't bleeding cash, the business isn't in trouble, but they aren't seeing enough growth to justify employing all those people for another few years. It's exactly what the email said, they over-hired.