Re:Gitlab to lay off 7% of staff
by tedivm on Thursday February 09, 2023 @09:44AM
(#34724652)
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.
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Re:Gitlab to lay off 7% of staff
by vintermann on Thursday February 09, 2023 @10:00AM
(#34724923)
Yes, making the same bad move as everyone else is safe. "Nobody ever got fired for choosing IBM", as they say.
Re:Gitlab to lay off 7% of staff
by disgruntledphd2 on Thursday February 09, 2023 @10:14AM
(#34725188)
> Exactly- Facebook laid off 7% of their staff and then followed it up with a $40 billion stock buy back
FB laid off about 14% of their staff.
The stock buy-back really exposes the game though... for $20bn they could retained their employees for another <5 years and just waited for the economic climate to change a bit... it's unlikely to take more than 18mo.
Whilst there's good arguments to be made about workforce planning during recessions, and how you need to not have "slack employees" doing nothing... there are similar arguments to be made about stock buy-backs (ie., that having 40bn in reserves is a massive economic cushion).
That they choose to weaken their cash position for the sake of a temporary boost to stock prices shows that their incentives arent well-aligned to most stakeholders in this.
Re:Gitlab to lay off 7% of staff
by disgruntledphd2 on Thursday February 09, 2023 @12:23PM
(#34727493)
Both the layoffs and the buybacks are sacrifices to the Gods of Wall Street, to earn the right to invest in the metaverse ;)