Re:Important Team and Business Changes
by gurchik on Thursday May 04, 2023 @08:20AM
(#35814160)
> We legally need the work laptop back, but we’ll help pay for a new one to replace it.
What law? I’m not criticizing Spotify at all for this decision, I’m just genuinely curious. A few other companies recently are giving away the laptops so I’m wondering what is different here.
Re:Important Team and Business Changes
by wayne on Thursday May 04, 2023 @08:42AM
(#35814352)
Not sure if it's the case with Shopify, but at big companies I've seen agreements with regulatory bodies and court legal holds that require the company certify that it's retained every scrap of employee data so that it's available for discovery later. The company can try to do this by uploading the entire contents of the laptop/phone to the cloud periodically, but they still don't retain 100% unless they do it once more at the very end and then hand the blank device back to the former employee. With layoffs involving thousands of partially-remote employees, that may not be logistically feasible and cheaper to just buy everyone a new device.
Re:Important Team and Business Changes
by nness on Thursday May 04, 2023 @08:22AM
(#35814177)
They're likely speaking of their liability should a employee's laptop, containing sensitive information, ever be stolen or re-sold (or simply, left in the hands of an ex-employee with a grudge.)
It would be difficult for a IT department to guarantee, for sure without replacing the internals of the device, that the device doesn't contain sensitive information. Probably easier from an inventory and IT security perspective to just capture every device than try and coordinate with individuals to reformat, etc.
(for the same reason, some companies outright destroy old devices instead of reselling.)
Re:Important Team and Business Changes
by dangus on Thursday May 04, 2023 @09:03AM
(#35814617)
I think it's actually a really easy guarantee on modern laptops from a technical standpoint, but that doesn't matter if there's a compliance requirement or contract they signed with major customers.
Re:Important Team and Business Changes
by ghaff on Thursday May 04, 2023 @09:34AM
(#35815063)
There are a lot of customer requirements around mobile device management and the like that arguably don't make a lot of difference for any employee wanting to work around them. But they're there so companies need to follow them.
Re:Important Team and Business Changes
by Karunamon on Thursday May 04, 2023 @09:25AM
(#35814941)
I know that Macs can give that level of assurance. One click from the MDM can brick the machine out to the point where it cannot even be booted from external media without a code, and another trashes the encryption keys and does a factory reset.
Re:Important Team and Business Changes
by qbasic_forever on Thursday May 04, 2023 @09:46AM
(#35815248)
That's bizarre or just shoddy IT. Every major platform has remote wipe and self destruct capabilities, control over full disk encryption, etc. I guess they let people bring their own devices and just not follow solid IT practices?
Re:Important Team and Business Changes
by flakeoil on Thursday May 04, 2023 @10:26AM
(#35815862)
Well, to properly erase (multiple overwrites and erase) I suppose IT would need to get the computer back for a while so it can fully complete without the employee removing the IT tool which can handle this removal.
Secondly, would you want to have a computer which your previous employer can wipe your disk at any time?
So all in all probably a good thing for both parties.
Re:Important Team and Business Changes
by qbasic_forever on Thursday May 04, 2023 @10:30AM
(#35815938)
If it's full disk encrypted then wiping and rewiping doesn't matter as much. As soon as the keys are trashed the data might as well be all zeros. Remote wipe is the whole point, it's not a goodbye gift to the employee... it's protecting company secrets. Wipe it and tell people to trash the machine as e-waste or send it back, it doesn't matter anymore.
Re:Important Team and Business Changes
by qbasic_forever on Thursday May 04, 2023 @01:04PM
(#35818678)
Which is why you have short lived (less than a week) certs that have to be renewed only by access to the corporate network before you can even power on and unlock the machine's drive encryption.
Re:Important Team and Business Changes
by devsda on Thursday May 04, 2023 @08:30AM
(#35814245)
I think it is not about specific law targeting laptops, but they might be legally obligated to protect their IP and business secrets i.e. source code, credentials and the documentation etc on the company owned devices.
If they give away the laptop, it will be difficult to guarantee and verify that the data is wiped out entirely within whatever time frame they are aiming for. So, they want their property back.
Re:Important Team and Business Changes
by 2rsf on Thursday May 04, 2023 @08:31AM
(#35814257)
Being in a layoff cycle at one of the biggies they scraped all of our laptops and refused to sell or give them away, with the reason being that it's too complicated to come up with the proper process to do that properly.
Re:Important Team and Business Changes
by Our_Benefactors on Thursday May 04, 2023 @08:55AM
(#35814514)
Lol… it will have to be the slowest of slow news cycles before wasteful corporate IT gets any press. To the average person it’s information about paint drying.
Re:Important Team and Business Changes
by mynegation on Thursday May 04, 2023 @09:06AM
(#35814654)
This is especially true for Apple laptops, where the transfer of ownership is complicated (to protect against theft). I saw Lenovos and Dells being recycled in corporate settings but never Macs.
Re:Important Team and Business Changes
by lechacker on Thursday May 04, 2023 @09:06AM
(#35814655)
I don't know why people even care about that. I go out of my way to not use my work laptop for personal work/projects/etc. Especially considering the amount they value the laptop at (which may be inflated) is deducted from your severance payment
Re:Important Team and Business Changes
by devsda on Thursday May 04, 2023 @09:48AM
(#35815277)
From my experience, not many people set boundaries between work and personal tasks and the number of people who have personal software projects outside work is tiny.
I too am guilty of using work laptop for personal work like shopping etc couple of times.
Personal anecdote:
one of my colleagues was recently discussing about replacing his 6 year old laptop that he rarely uses, one of our architects commented : "I don't understand why anyone would need a personal laptop at home. We can use our work laptop for anything that our mobile can't do". I was surprised to hear that from an architect and even more surprised to see many others nod in agreement.
Re:Important Team and Business Changes
by ghaff on Thursday May 04, 2023 @10:06AM
(#35815537)
On the one hand, having complete separation of work and personal electronics is a best practice. On the other hand, most of us don't carry two phones or two laptops when we travel on business.
If I were a senior government official or in some other high profile/sensitive role I'd probably be more conservative but it's pretty common to use some combination of personal and business-issued devices for everything.
Re:Important Team and Business Changes
by tetromino_ on Thursday May 04, 2023 @09:42AM
(#35815189)
It could be for be contractual reasons: for example, employees might have proprietary licensed third-party data or source code checked out in a local cache somewhere, and IT needs the laptop back to verifiably scrub the hard drive.
Re:Important Team and Business Changes
by neom on Thursday May 04, 2023 @09:48AM
(#35815275)
Shopify is a Canadian company, Canada has laws around if you do work on your own hardware vs company hardware being what classifies you as a contractor vs an employee. If I had to guess, I'd imagine the lawyers are worried employee classification based on hardware.
Re:Important Team and Business Changes
by halgir on Thursday May 04, 2023 @10:54AM
(#35816335)
I recently negotiated terms on behalf of a group of laid off employees, and one item I pushed on was that they get to keep their laptop. The company said that wouldn't be possible for everyone, because many laptops were leased, and so were not the company's to give. In those cases, they would be given a different but equivalent device.
Re:Important Team and Business Changes
by felipevb on Thursday May 04, 2023 @08:29AM
(#35814224)
> Shopify finds it useful to talk about the difference between main quests and side quests internally. The main quest of the company is its mission, the reason for the company to exist. Side quests are everything else.
The main quest / side quest analogy works so so well!
Re:Important Team and Business Changes
by marcinzm on Thursday May 04, 2023 @08:39AM
(#35814333)
In my observation absolute statements about no layoffs are a strong indication of future layoffs in this economy. It's impossible to be certain in this economy so giving an absolute statement is basically a lie. Someone who is so brazen about lying to/deceiving their employees will have no qualms with doing layoffs. On the other hand someone who uses more careful language even if it costs them in the short term is someone who will have more qualms about layoffs.
Re:Important Team and Business Changes
by duxup on Thursday May 04, 2023 @09:09AM
(#35814682)
I agree, but I think the sports analogy is even more on point when it comes to sports management giving a vote of confidence to coaches. You only ever have to say anything like that when there are questions.
Coaches and players... they talk about each other a lot.
Re:Important Team and Business Changes
by BoxFour on Thursday May 04, 2023 @10:01AM
(#35815459)
I think this is actually a more astute analogy than you realize, because the only reason a coach would be asked that question in the first place is because there are questions about the player’s ability to perform—-as the sibling comment here notes.
Similarly, you don’t ask tech companies if they’re doing layoffs when the sector is booming.
That the question is even asked probably shoots the probability of benching/layoffs up to some ridiculous amount to begin with.
Re:Important Team and Business Changes
by s_dev on Thursday May 04, 2023 @12:07PM
(#35817666)
In sports or in Irish politics were the Taoiseach might have to state he has "full confidence" of whatever individual in his administration when there are "irregularities" that have come to light.
Re:Important Team and Business Changes
by matwood on Thursday May 04, 2023 @12:19PM
(#35817888)
I mean, is there another part of that quote? Anytime I've been put on the spot for these types of statements it's always '...at this time.' Nothing in business is static. When the facts change the business has to change.
Re:Important Team and Business Changes
by 542458 on Thursday May 04, 2023 @08:50AM
(#35814455)
I feel it depends on a lot of factors, such as how senior your ICs are, how interlinked their tasks are, how complex the domain is, how large the project is, what the rate of attrition is, how complex the organization’s established procedures are…
An organization that has nothing but fairly senior researchers working on separate projects might need little management. An organization with lots of more junior engineers working on something like a rocket (where every part depends on every other part) might need more overhead.
Re:Important Team and Business Changes
by rcme on Thursday May 04, 2023 @09:01AM
(#35814588)
Regardless of what the healthy ratio is, managers are typically incentivized to add more managers between themselves and their reports. This creates the illusion that they are more senior and worth of a promotion to senior manager, director, VP, etc. so even if your company has a healthy ratio, there needs to be a force counteracting the natural desire of managers to grow their ranks.
Re:Important Team and Business Changes
by dangus on Thursday May 04, 2023 @09:12AM
(#35814721)
I don't know about a minimum but I think 10 is a good upper limit.
Unrelated, I think that we should stop calling workers individual contributors. I think "workers" is a more fitting description.
"Individual contributor" makes the worker seem smaller and less impactful, as if management is contributing in a way that's superior and bigger than the individual. In reality, only the workers work, and managers manage, doing less work the higher up on the ladder they go.
Don't believe me? Here's a list of CEOs that somehow managed to be CEO of multiple companies at once.
- Jack Dorsey
- Jeff Bezos
- Elon Musk
- Carlos Ghosn
And yet, my employer forbids me from having more than one day job.
Re:Important Team and Business Changes
by 23B1 on Thursday May 04, 2023 @09:18AM
(#35814799)
The concept of "span of control," sometimes called the management ratio, is the number of direct reports controlled directly by a leader or a manager. The concept was developed in the UK by Sir Ian Hamilton in his book The Soul and Body of an Army, in the 1920s.
It arose from the assumption that managers have finite amounts of time and energy to spend with their people and their jobs.
Analyzing British military leaders, Hamilton found that the leaders could not effectively control more than 3-6 people. These figures have been generally accepted as the "rule of thumb" for span of control ever since, at least in the military where the bulk of my management experience lies.
Re:Important Team and Business Changes
by umeshunni on Thursday May 04, 2023 @01:35PM
(#35819193)
3-6 sounds like a good rule of thumb.
Research that I have seen hints that people who were in I shaped teams (i.e. single person reporting to a manager) and V shaped teams (2 people reporting to a manager) were much unhappier than larger teams.
Similarly, somewhere close to 10 is when the there is just not enough 'managing' or mentorship happening. I have seen that work only in cases where most of the ICs are senior/staff level and are effectively self-managing.
Re:Important Team and Business Changes
by taneq on Thursday May 04, 2023 @09:20AM
(#35814837)
It varies depending on the specifics, but I’ve seen 1:7 work well across multiple industries. Anything routine enough to need less oversight is automated, and anything needing more oversight is either cutting edge research or isn’t hiring experienced enough staff.
Re:Important Team and Business Changes
by adrr on Thursday May 04, 2023 @12:22PM
(#35817938)
Depends on what the role of manager is. Lots of orgs push their best talent into management so they are also expected to do IC and also manage. My belief is there should be a separate but with equal pay track for ICs and you push your best ICs into that track. Ratios between of one manager to 10 to 20 ICs.
Also there is benefit of flat orgs which comes with higher ratio in terms of meeting reduction and also communication efficiency both top down and bottom up.
Re:Important Team and Business Changes
by jrochkind1 on Thursday May 04, 2023 @09:03AM
(#35814608)
> The balance of crafter to manager numbers is a tricky one to strike. Too few and you risk misalignment on the most important things, too many and you add heavy layers of process, approvals, meetings and… side quests. Our numbers were unhealthy, just like it is in much of the tech industry. One of the insidious consequences of this is that it leads to the company increasingly celebrating activities rather than crafter driven outcomes. With the right numbers we’ll fully focus on outcomes and impact.
Am I reading this right that they decided they had too many managers, and are laying off some? They don't say it clearly in which direction they thought they were unbalanced, but I think that's the implication of "activities rather than crafter-driven outcomes", or just what is supposed to be the obvious answer when anyone says this is unbalanced?
Re:Important Team and Business Changes
by icegreentea2 on Thursday May 04, 2023 @09:11AM
(#35814717)
Yes, I read the statement as Shopify having too many managers and is weighting their layoffs to address that ratio (as well as generally pruning "side quests").
> too many and you add heavy layers of process, approvals, meetings and… side quests (emphasis mine)
and
> A more fit for purpose Shopify centered on its main quest has less scope creep, fewer meetings, and more shipping great features for our merchants. (emphasis mine)
Re:Important Team and Business Changes
by tgtweak on Thursday May 04, 2023 @11:15AM
(#35816700)
Yet they're not offering those managers IC positions, they're just cutting and targeting managers with higher salaries for the most part. Also heard of a few staff engineers that went.
Re:Important Team and Business Changes
by jrochkind1 on Thursday May 04, 2023 @02:38PM
(#35820139)
I'm a rubyist, and they have been recently known for hiring people to work on ruby as a language and contribute to ruby/rails ecosystem in a general way, not always directly and specifically related to their own codebase. I wonder if they're gonna stop all that stuff.
Re:Important Team and Business Changes
by SilverBirch on Thursday May 04, 2023 @09:13AM
(#35814746)
Once again a company that prides itself on being a follower rather than a leader. It drives me insane
>Our numbers were unhealthy, just like it is in much of the tech industry.
Ok, can we consider this in your compensation discussions this year? That you mindlessly followed the crowd and left your company structurally weak? Or do we think you're going to shoot for record compensation this year?
Re:Important Team and Business Changes
by callahad on Thursday May 04, 2023 @09:53AM
(#35815351)
Is the company structurally weak? Absolutely awful situation for the workers, but I haven't seen systemic negative effects for the companies conducting layoffs.
Re:Important Team and Business Changes
by zinodaur on Thursday May 04, 2023 @11:00AM
(#35816433)
I work at a company that did similarly large layoffs despite record profits. In our case, the cuts were conducted by an MBA.
Many important revenue driving products have been mangled by having their teams entirely removed, with pages going completely unanswered.
In at least one case, it seems like an entire team was cut in error.
The company was seriously negatively impacted, but the share price hasn't budged. To the extent that share price is connected to reality, I imagine it will take while for the market to notice the impacts of a layoff
Re:Important Team and Business Changes
by nerpderp82 on Thursday May 04, 2023 @12:50PM
(#35818448)
These cuts are being done for two reasons
1) wage suppression
2) by hostile take overs inside the company by MBAs, the phase lag between the layoffs and impact on velocity or the bottom line is too long. The second order fire that comes months later gives them an option to look like a hero again.
Most MBAs burn an asset for a short term gain. Period.
Re:Important Team and Business Changes
by SilverBirch on Thursday May 04, 2023 @12:48PM
(#35818394)
What the CEO is saying is that he hired a load of people into the company that they don't need. Now they're going to try and get rid of them. Wouldn't the company have not been better off just... not hiring the useless people in the first place? And isn't it going to be a significant drain on resources and morale to pick through and get rid of all the dead weight? And are they actually going to get rid of the bad people, or as with most of these situations are they going to be left with the politicians whilst the good people go off to great opportunities elsewhere?
Businesses are path dependent, you can't just go "oh, not enough people hire more, oops! too many, fire some!".
Re:Important Team and Business Changes
by Graziano_M on Thursday May 04, 2023 @09:19AM
(#35814822)
I love how they don't want to bury the lede, but they also will use the passive voice: "after today Shopify will be smaller by about 20%". "some of you will leave Shopify today". It's not at all that those people are being laid off!
For example, in the passive sentence "The tree was pulled down", the subject (the tree) denotes the patient rather than the agent of the action. In contrast, the sentences "Someone pulled down the tree" and "The tree is down" are active sentences.
Re:Important Team and Business Changes
by stickfigure on Thursday May 04, 2023 @04:39PM
(#35821740)
I don't even agree with that point. "Some of you will leave Shopify today" is a lot more blunt than the quasi-euphemistic term "laid off". Someone is really stretching for outrage.
Re:Important Team and Business Changes
by rpsw on Thursday May 04, 2023 @09:21AM
(#35814865)
> But now we are at the dawn of the AI era and the new capabilities that are unlocked by that are unprecedented. Shopify has the privilege of being amongst the companies with the best chances of using AI to help our customers. A copilot for entrepreneurship is now possible. Our main quest demands from us to build the best thing that is now possible, and that has just changed entirely.
Most recent layoffs have been framed around needing to focus the company due to economic and market headwinds. This reads like AI has transformed the mission.
What does "A copilot for entrepreneurship is now possible" mean here?
Re:Important Team and Business Changes
by A4ET8a8uTh0 on Thursday May 04, 2023 @09:56AM
(#35815393)
<< What does "A copilot for entrepreneurship is now possible" mean here?
I think this is what is meant here[1]. Not copilot, but the idea is the same.
It is interesting, because 'prompt engineering' is being discussed in the same context. In the video, you will note several interesting bugs generated by GPT. Is it not exciting to see all those bugs in the next few years?
Re:Important Team and Business Changes
by bombcar on Thursday May 04, 2023 @10:38AM
(#35816064)
After IBM did it, every layoff from now on is going to explicitly or implicitly say that AI will cover for things in the future; it's some magic words to try to not spook investors.
Re:Important Team and Business Changes
by subpixel on Thursday May 04, 2023 @10:39AM
(#35816081)
Think of it more like auto-pilot. You go to sleep and your shop runs promos, creates new products (digital, or digitally-printed), whatever - all so you wake up to new sales.
Re:Important Team and Business Changes
by tensor on Thursday May 04, 2023 @10:56AM
(#35816363)
This is especially hilarious as Shopify senior leadership has traditionally been outright against AI, and is even blatantly against making decisions based on data, and even against people with domain expertise! Even today, I don't think they remotely understand AI and certainly not how to build it.
I guess their idea of AI is someone using the ChatGPT API. Good luck if they think they will "hack" some revolutionary AI together with a cowboy hacker culture.
Re:Important Team and Business Changes
by neom on Thursday May 04, 2023 @09:28AM
(#35814979)
Does anyone have a sense of how bad things really are for the US economy and what the next 12/18 months are going to look like? Seems like every day all I see is doom and gloom, I've not seen a bright spot in quite some time... it's becoming increasingly difficult for me to get a sense of where things are. People keep saying things are going to get worse, I keep reading things are going to get worse, friends are literally committing suicide. Feels like twilight zone.
Re:Important Team and Business Changes
by cxf12 on Thursday May 04, 2023 @09:38AM
(#35815132)
I'm in the BI space. I'll answer anecdotally since I pay attention to the job boards in the US quite a bit. I've got no hard data for my assertion full disclosure. For the last 3 months entry level work has dried up. I'm seeing very few postings for underling positions. Mid level 4-7 years jobs have markedly declined as I'm seeing fewer postings across this same time span month over month. 7+ years experience seems to be flat, but not down as the other tranches of work. You asked for a sense. That's my sense.
Re:Important Team and Business Changes
by 0zemp2c on Thursday May 04, 2023 @09:40AM
(#35815161)
doom and gloom? all major indexes are still trading at lofty values
"safety" stocks like AAPL are at all-time highs
real estate has budged slightly, but a rounding error off of the gains made in the last few years
even employment...tech hiring is getting hit but lots of other employers in retail, food & beverage are reporting record hiring and even wage increases
if there is a "crash", it hasn't happened yet
you may just end up with a sucky decade of stagflation...you are poorer every day, but just not dramatically so
Re:Important Team and Business Changes
by qbasic_forever on Thursday May 04, 2023 @09:49AM
(#35815286)
Separate your personal happiness from your job. Who knows what the future holds, maybe it won't be working in tech. Be ready for anything IMHO. It might get better, or it might not any time soon. But the sun will come up again tomorrow, and the day after and after etc.
Re:Important Team and Business Changes
by the_only_law on Thursday May 04, 2023 @12:19PM
(#35817887)
No, but it’ll certainly make me more likely to do things that might pay my rent. Certainly compared to a “la de da nothing is wrong xd it is what it is” attitude.
Re:Important Team and Business Changes
by whateverman23 on Thursday May 04, 2023 @01:45PM
(#35819348)
I think many people, especially the privileged in tech, haven't had to worry about money before. The possibility of losing it all and ending up homeless doesn't even cross their mind, either from ignorance or from significant personal/family wealth that provides a safety net.
Easy not to worry when you can't fathom that it may happen to you or your peer.
Re:Important Team and Business Changes
by SauciestGNU on Thursday May 04, 2023 @01:46PM
(#35819372)
I also struggle to separate what I do from who I am. I've been trying to build a more purposeful sense of identity outside of work, because jobs will come and go. Plus I sound like a real tool if someone asks me what my deal is and all I can say is "software engineer".
Re:Important Team and Business Changes
by rawgabbit on Thursday May 04, 2023 @10:37AM
(#35816051)
The explanation that is circulating is that everyone is making decisions based on where inflation is headed. If inflation is not tamed, business leaders will seek to extract more cost cuts (more layoffs).
The other headline is that LLM and ChatGPT is reshaping the tech landscape. Tech companies are laying off engineers so they can hire AI/LLM engineers to compete with ChatGPT. Based on my limited knowledge, OpenAI is head and shoulders above everyone else. Google's Bard is a distant second.
Re:Important Team and Business Changes
by ejb999 on Thursday May 04, 2023 @12:30PM
(#35818067)
We posted a job back in oct/nov for a senior tech position at a very large, but non-tech company - we got 3 applicants/resumes, 2 of which were out of the country and not considered. The one got hired (and was a good hire).
In Jan/Feb posted the exact same job (an additional position) and got over 300 resumes including from ex-FAANG folks who we generally don't see applying).
Something sure has changed imo, and I also personally do believe things are about to get much, much worse for many people.
Re:Important Team and Business Changes
by pphysch on Thursday May 04, 2023 @12:51PM
(#35818467)
By far the best historical analogy is the decaying USSR. We have an elite class that has been totally spoiled by the last 40 years of triumphalism, and lacks vision.
QoL for most Americans will continue to drop to match USA's precipitous decline in geopolitical status, but even Russia rebounded after just a couple decades. Hey, we got a bunch of O&G as well.
Re:Important Team and Business Changes
by medellin on Thursday May 04, 2023 @10:27AM
(#35815893)
The letter seems to have two audiences. Investors and employees. It’s easy to criticize this stuff but i have yet to see HN provide any valid feedback in these threads outside of criticizing past decisions of the CEO.
Re:Important Team and Business Changes
by throwwwaway69 on Thursday May 04, 2023 @11:32AM
(#35817028)
Here’s valid feedback: don’t use ridiculous language (team change), treat us like adults. We know what this is. Don’t turn a message about layoffs into a marketing puff piece about Shopify’s mission to save kittens and make rainbows. Own up to literally any amount of accountability, and be real as for the reasons this is happening (we hired these people knowing the risk we may need to lay them off - we were wrong and now you suffer as a consequence)
Re:Important Team and Business Changes
by medellin on Saturday May 06, 2023 @11:44AM
(#35842454)
Honest question. What good does that do? It’s a company they aren’t here to make you feel better.
They are treating you like an adult by giving you a nice severance package. I don’t understand the need for people to have companies admit they were wrong.
Re:Important Team and Business Changes
by jimmytucson on Thursday May 04, 2023 @10:30AM
(#35815934)
The notion that this CEO and hundreds of others made bad decisions by over-hiring is sensible, but the fact that so many made the same mistake at the same time makes me second-order think this. As cruel as it sounds, what if over-hiring was a good long term decision? What would that imply?
It would mean that _not_ hiring aggressively in a high-inflation period is harmful to business. To me, that is far more interesting to think about than CEOs making dumb mistakes and not getting punished for it because life isn't fair...
Re:Important Team and Business Changes
by sokoloff on Thursday May 04, 2023 @12:30PM
(#35818080)
I feel like not hiring aggressively in a _low-interest-rate environment_ is harmful to your business.
Assuming you have some productive use for the incremental employees, the discounted returns from those employees' contributions are decreased by an uncertainty factor and by the risk-free interest rate. When that latter term is near zero, hiring is restricted by the uncertainty of their performance and projects assigned to, meaning you get a lot of hiring by sensible, data-driven management teams.
Re:Important Team and Business Changes
by rcme on Thursday May 04, 2023 @10:37AM
(#35816059)
From a business perspective, this is great for Shopify. The labor market for software engineers has seriously softened as a result of all the layoffs. Go look at job openings and their posted salaries.
When Shopify beings hiring again, they are going to be able to hire talent at a fraction of the price.
There is essentially a vicious cycle targeting tech compensation. Activist investors are convincing boards that they're overpaying their tech talent. Then those boards approve layoffs. Then those layoffs further lower salaries. Rinse and repeat.
Re:Important Team and Business Changes
by exhibitapp on Thursday May 04, 2023 @11:54AM
(#35817427)
this is absolutely not true, I know engineering managers with around 5-7 years of total experience ( aka people under 30 ) making $400,000 CAD in cash compensation at shop. They recently did a cash/equity split where employees could choose their split and not a huge surprise many chose the maximum cash
there are no government engineering positions in Canada paying anywhere close to this
Re:Important Team and Business Changes
by zeroxfe on Thursday May 04, 2023 @11:59AM
(#35817529)
Totally not true. My Shopify offer was slightly higher than my Google offer (as a re-hire), both base + stocks, about 3 years ago. However, going with Google really paid off because of the stock performance.
Re:Important Team and Business Changes
by inerte on Thursday May 04, 2023 @06:31PM
(#35822996)
Last September. You now get $X per year and chose how much you want in stocks or cash. Depending on your level, a certain minimum of stock is necessary. Most Sr / Staff engineering had a floor of 10% stocks, but the rest is plain cash.
Shopify wasn't paying like FAANG, but also not like a startup. I would say 75% of a FAANG.
Re:Important Team and Business Changes
by mattgreenrocks on Thursday May 04, 2023 @11:56AM
(#35817470)
It's not just tech compensation.
The zeitgeist right now is that employee comp is/was simply too high. There have lots of murmurings lately that amount to that at many different levels of the capital chain. Perhaps what's interesting about now is that people are quite okay with saying it openly. Tech is an easy target since it is well-known, and the pandemic inflated the importance of tech artificially to some degree.
Fully grokking the idea that employee comp could be "too high" for the overall health of the economy really did a number on my economic worldview. Gone is the naive belief that rare/valuable skills secure higher salaries over a long period of time. I no longer trust employers to take care of me, and that getting better at building assets (in the form of products, mostly) is something to grow into to supplant and eventually buy out time spent working for someone else.
Re:Important Team and Business Changes
by no_wizard on Thursday May 04, 2023 @11:59AM
(#35817534)
Isn't this frustrating? Employees of course have the bare the brunt, but god forbid its shareholders and executives that need to scale down their payouts.
Feels so incredibly backward.
And yes I know its "stock performance" but what do you think drives this? With executive compensation mostly related to stocks, of course at the end of the day, thats what they want to drive up.
Re:Important Team and Business Changes
by rcme on Thursday May 04, 2023 @12:29PM
(#35818058)
Employees have to bear the brunt of the effects because those making the macroeconomic decisions are part of the capitalist class. Jerome Powell was a partner at one of the world’s largest private equity firms. Is it any surprise that he’s trying to spin a narrative that employees are paid too much? Isn’t squeezing employees to increase profits what those in private equity typically do?
Re:Important Team and Business Changes
by mattgreenrocks on Thursday May 04, 2023 @12:23PM
(#35817955)
In this case, "too high" = "we haven't figured out how to commoditize it well enough yet because the skill floor/ceiling is too high to scale with cheaper talent." This was one of the primary reasons I began to specialize partially in tech domains that are regarded as "hard" (compilers/perf): much smaller market means employees have a bit more leverage.
Re:Important Team and Business Changes
by dfjkdksjds789 on Thursday May 04, 2023 @02:38PM
(#35820133)
Do you feel there is much demand in those areas? I'm interested in more theoretical things but have doubts that many jobs would be available or for them to be valued even though its more difficult
Re:Important Team and Business Changes
by mattgreenrocks on Thursday May 04, 2023 @02:57PM
(#35820395)
Definitely a tradeoff: much fewer companies, but the ones that are left are higher quality if they are seeking out that sort of thing. It really depends on what you're looking for.
I settled into a role of research software engineer, where I do both applied research and development, applying a lot of compiler-ish stuff to different domains within cybersecurity, such as building out control flow graphs from binaries, thinking about how to instrument assembly code efficiently, fast pattern matching, and static analysis, where I am currently. The role fits me like a glove, but it isn't for everyone. In my job search, I started at, "I want a job doing compiler work," and eventually broadened scope a few times until I landed on, "I want a job where compiler-type approaches are on the table of possibilities." This offers a wider variety of work, which I like.
I can discuss more over email (check my HN profile) if you'd like, but most of what I know is US-centric due to how funding works for these types of research. Larger orgs like FAANGs also have it, but the pool is much more competitive, as you'd expect.
Re:Important Team and Business Changes
by dfjkdksjds789 on Saturday May 06, 2023 @05:35PM
(#35845558)
I'd love to have some more discussion especially on what areas within cybersecurity may have good demand :) Although I can't find the email in your profile or github!
Those parts you mentioned like the static analysis or control flow graphs sounds cool
Re:Important Team and Business Changes
by time_to_smile on Thursday May 04, 2023 @12:55PM
(#35818517)
> Gone is the naive belief that rare/valuable skills secure higher salaries over a long period of time.
While I agree that this is a naive belief to have (at this point in my career I think there's almost a slightly negative correlation between skill and TC) the general talent pool for software engineers has, at least in my experience, dropped tremendously while TC has exploded.
The most important skills for getting high paying jobs in the last few years has been grinding leet code, then grinding systems design etc, etc. Software engineers no longer have "rare/valuable" skills, they have highly commodified, easily replicable skills (at least at the interview level).
Software engineers today simply aren't that skilled (at least on average) despite what they want to believe. It reminds me a lot of dotcom bubble where anyone with a pulse that could turn on a PC could get a high paying job.
Re:Important Team and Business Changes
by 1attice on Thursday May 04, 2023 @02:05PM
(#35819644)
Honestly, it can't. What it will do instead is cause the most abrupt wealth concentration in the history of humankind. This will create 'revolutionary' conditions, although the shape and direction of that revolution will differ from context to context. In some places, it is likely to be fascist; in others, socialist; in still others, unexplored, undiscovered options. It will be a time of experimentation -- or as Gramsci eloquently, and more pessimistically, put it, a "time of monsters."
But what is going away, permanently, is the space between extremes. Pour one out. I miss it already.
Re:Important Team and Business Changes
by jonny_eh on Thursday May 04, 2023 @12:58PM
(#35818573)
> When Shopify beings hiring again, they are going to be able to hire talent at a fraction of the price.
Wouldn't it be the opposite? When the market recovers, they'll competing with everyone else for talent, when instead if they held onto their talent, they could be paying less.
Re:Important Team and Business Changes
by 908B64B197 on Thursday May 04, 2023 @04:04PM
(#35821323)
> When Shopify beings hiring again, they are going to be able to hire talent at a fraction of the price.
What I've been told about Shopify is that they were seen as a good place to get "western" experience before jumping ship (often for folks who couldn't pass the higher bar for US immigration) because they were already not very competitive with companies in the valley.
Re:Important Team and Business Changes
by pcthrowaway on Thursday May 04, 2023 @04:14PM
(#35821452)
Shopify was never paying top of market in the first place. They might be able to get better talent for the same price, but "a fraction of the price" to me has a connotation of "1 over (an integer bigger than 1)", meaning 1/2 or less what they were paying previously... and this is certainly not the case for them.
If you're going to suggest 9/10 is also a fraction or something I'll counter that 4/3 is also a fraction, and no one uses "a fraction of the price" to refer to an increase in price
Re:Important Team and Business Changes
by HDThoreaun on Thursday May 04, 2023 @10:37AM
(#35816062)
Over hiring in the face of uncertain macro conditions and consumption changes is probably the right choice. If your market expands as you believe it might you're ready to step in and grow. If it doesn't grow you can just lay people off and you're back where you started. The important thing here though is that it's hard to catch up to competitors that have lapped you but it's easy to slow down when you're ahead. If you think there's just a 10% chance that covid causes e-commerce to 10x in size it makes sense to prepare as though it will and then shrink the workforce if things go back to normal.
Re:Important Team and Business Changes
by jq-r on Thursday May 04, 2023 @11:55AM
(#35817464)
If the company didn't do a round of layoffs I'm sure the workers would appreciate that, despite what's going on outside of the company. So even if the company hits a rough patch they'll stick with it, instead of abandoning ship. Or as they say, respect is a two way street.
Re:Important Team and Business Changes
by Cthulhu_ on Thursday May 04, 2023 @10:39AM
(#35816086)
It just reiterates that on a high enough level, employees are just numbers, resources and sliders to fiddle with, often having a direct correlation with share price.
Re:Important Team and Business Changes
by pdntspa on Thursday May 04, 2023 @12:08PM
(#35817690)
This is exactly what is taught in business school. It's why you are a human resource, a thing to be used, rather than a human being with skills and a story and a life and needs
Re:Important Team and Business Changes
by 908B64B197 on Thursday May 04, 2023 @10:48AM
(#35816231)
According to the man himself
>>Our numbers were unhealthy, just like it is in much of the tech industry.
But that didn't prevent him from profiting from it nor from the layoffs.
To be completely honest, I've never been bullish on Shopify. To me it looked like a "mee too" play for investors that missed the boat on Amazon, Square and Stripe.
Re:Important Team and Business Changes
by clpm4j on Thursday May 04, 2023 @12:03PM
(#35817600)
Also the same CEO who joined Coinbase's board last year, and has seemingly fallen down the crypto rabbit hole. Maybe he's lost a bit of focus on Shopify.
Re:Important Team and Business Changes
by VoodooJuJu on Thursday May 04, 2023 @12:06PM
(#35817658)
>Aren’t CEOs paid ludicrously well to make long term decisions, rather than just flail around?
CEO's are neither prophets nor oracles. They are effectively dice-rolls with a face. Not rollers, but rolls. No matter what, sometimes you get bad numbers.
Founder CEO's like Lutke are heroes. They have skin in the game. This forces them to calculate their risks. Their actions and decisions have greater weight because of this - their payday is not guaranteed, especially early on in the game.
Non-founder CEO's are rent-collectors. They have no skin in the game. Unlimited upside and no downside. They get a handsome payday no matter what.
Non-founder CEO's and the absence of skin in the game is what yields the bastardy that is modern corporatism: highly-paid people who can flail around all they want and still land on their feet.
In this case, Lutke made a bad bet, but with Shopify's success, he's at the point where the result of his bets have no impact on him. He already got his payday.
Re:Important Team and Business Changes
by ink_13 on Thursday May 04, 2023 @12:30PM
(#35818079)
Lutke's not a hero, he's a mini-Zuckerberg: he still runs the company he founded as CEO, but he has already made more than enough money to comfortably retire. Also like Zuckerberg, his company might be better off without him at this point, since being practically unaffected by success or failure makes continuing as CEO something of a vanity project.
Re:Important Team and Business Changes
by idopmstuff on Thursday May 04, 2023 @12:47PM
(#35818387)
Virtually anybody else who they'd hire as a CEO would also have more than enough money to comfortably retire. Lutke has more reputation/passion/history/identity tied up in the company than anyone else would - where money isn't a driving factor, deep connection to the thing you're working on is probably the most important motivation.
Re:Important Team and Business Changes
by ink_13 on Thursday May 04, 2023 @02:28PM
(#35819994)
Lutke and Zuckerberg are billionaires. It is literally impossible for them to run out of money. Their grandchildren's grandchildren will be born incomprehensibly wealthy. They have won at capitalism.
But they also captain their first large enterprises: do they know what they're doing? Can they transition these firms into businesses that will endure? Or will they capriciously chase shiny objects while they waste the trust and goodwill of investors, the people who work there now, and the people who will want to work there in the future? They might have seeded the garden, but it took thousands of smart people to build it up, and it takes a constant supply to maintain it.
A new CEO will probably be rich, sure, but not "endow a historical dynasty" rich, and might know how to take a successful company and reposition it for the long term. Maybe the younger guys can do it. But it would just be for vanity at this point.
Re:Important Team and Business Changes
by pcthrowaway on Thursday May 04, 2023 @04:29PM
(#35821637)
Sure, but if a billionaire can piss away 40B during an ego trip (which I imagine billionaires are susceptible to), most billionaires would no longer be solvent after making such a mistake
Re:Important Team and Business Changes
by jacques_chester on Thursday May 04, 2023 @01:20PM
(#35818922)
Tobi took a shitton of skin out of the game when the price was high. And he has a golden share, he can't be replaced, so there's no way for a board to discipline him or fire him. I wouldn't call that skin in the game. He owns the game.
Re:Important Team and Business Changes
by sharkweek on Thursday May 04, 2023 @12:44PM
(#35818329)
A favorite quote of mine about the role of a CEO from the movie Margin Call. Tuld, the CEO of a major bank the night before the housing crisis in 08 starts to fly out of control, after one of the bank's risk analysts discovers they're holding toxic assets:
John Tuld : So, what you're telling me, is that the music is about to stop, and we're going to be left holding the biggest bag of odorous excrement ever assembled in the history of capitalism.
Peter Sullivan : Sir, I not sure that I would put it that way, but let me clarify using your analogy. What this model shows is the music, so to speak, just slowing. If the music were to stop, as you put it, then this model wouldn't even be close to that scenario. It would be considerably worse.
John Tuld : Let me tell you something, Mr. Sullivan. Do you care to know why I'm in this chair with you all? I mean, why I earn the big bucks.
Peter Sullivan : Yes.
John Tuld : I'm here for one reason and one reason alone. I'm here to guess what the music might do a week, a month, a year from now. That's it. Nothing more. And standing here tonight, I'm afraid that I don't hear - a - thing. Just... silence.
Re:Important Team and Business Changes
by kypro on Thursday May 04, 2023 @03:22PM
(#35820787)
To be fair it's extremely hard to make long-term decisions when you have politicians deciding to arbitrarily lock down the economy forcing all small businesses to engage in e-commerce, and when you have a Federal Reverse which alternates between creating financial bubbles and financial crises every couple of years.
Shopify being a beneficiary of both the government mandated lockdowns and the Fed backed investment bubble really had no option but to dramatically increase headcount. Their business literally doubled from 2020-2021 due these actions.
To believe in 2021 that in 2022 the Fed would undergo the most aggressive tightening cycle in history triggering significant headwinds for both startups like Shopify and their small business customers was absurd. At the time the Fed was saying that they weren't "even thinking about thinking about raising rates" so you basically had to assume that Fed lacked all credibility.
I guess what I'm saying here is that there is a reason why so many companies got this wrong beyond incompetence. So if you don't like it you should consider redirecting your outrage.
Re:Important Team and Business Changes
by softwaredoug on Thursday May 04, 2023 @09:36AM
(#35815096)
I worked at Shopify until the Fall.
Shopify was just a really fun place to work. And in part this was because they did a really good job of interviewing. Technical, yes, but in particular behaviorally.
So I can honestly say that many of the colleagues I know being let go are truly great colleagues. They were some of the most impactful people I worked with in my org (discovery) and they are a great get for any company.
Re:Important Team and Business Changes
by organsnyder on Thursday May 04, 2023 @10:20AM
(#35815766)
Shopify calls its first interview the "life story" interview, and (in my experience) it was a great place for me to talk about my career, reflect on past successes and mistakes, and demonstrate empathy and self-awareness.
Re:Important Team and Business Changes
by organsnyder on Thursday May 04, 2023 @12:41PM
(#35818251)
I didn't feel compelled to share anything I didn't want to share. I really felt free to frame it in a way that I was comfortable with. It's as much a "career story" as a "life story", IIRC.
Re:Important Team and Business Changes
by annexrichmond on Thursday May 04, 2023 @02:50PM
(#35820316)
That’s a bit presumptuous. I was enthusiastic about the interview until afterwards
The interview was conducted by the recruiter and while she didn’t flat out ask personal questions, she asked questions that would almost cause me to reveal personal information such as my marital status and sexuality. It was not fun coming with made up responses to avoid that because it’s none of her business.
There’s a reason interviews should stay professional. I’m surprised they haven’t been sued.
Re:Important Team and Business Changes
by s1artibartfast on Thursday May 04, 2023 @03:24PM
(#35820814)
Sorry if my comment came off at an personal attack, that wasn't the intent.
With that said, there are lots of reasons why a company might want to vet candidate attitude besides discriminating based on protected characteristics.
Out of curiosity, what kind of questions did you find invasive or discriminatory?
Re:Important Team and Business Changes
by annexrichmond on Thursday May 04, 2023 @05:44PM
(#35822505)
So it wasn't the questions themselves, but when you start asking about why you moved from this city to that, or why did you choose this school, etc. Maybe it's because your SO got a job there, or some other personal reason.
I get that it's totally an innocent intent, but there are much better ways to assess a candidate's soft skills, that is strictly related to their professional experience.
Re:Important Team and Business Changes
by s1artibartfast on Thursday May 04, 2023 @06:29PM
(#35822978)
Okay, my Original Point was that maybe one of the soft skills the test is assessing is the ability and willingness to share their personal self in a positive and constructive manner.
Many if not most people find us a desirable attribute in coworkers and workplaces. I get that it's not for everyone, but not every workplace is a good fit for everyone.
I think you're getting some rude comments because of exactly this fact
Re:Important Team and Business Changes
by annexrichmond on Thursday May 04, 2023 @06:58PM
(#35823217)
honestly that is something I value as well, but I think that's when a lot of bias can come into play. Perhaps that bias is desired for culture fitting, but you still have to be careful if protected-class stuff comes up and you want to reject the person.
fwiw, when I interview candidates in a technical interview, I still attempt at some small talk to get a sense of "can I have a normal conversation with this person"
Re:Important Team and Business Changes
by s1artibartfast on Thursday May 04, 2023 @09:18PM
(#35824220)
Sure, I think I agree that once you get into picking people based on cultural fit, you run some risk of discrimination suit, real or unreal. It is a tricky area.
Re:Important Team and Business Changes
by symlinkk on Thursday May 04, 2023 @12:47PM
(#35818380)
So only people who have slick enough social skills to bullshit their way through that will get hired. The quiet unassuming engineer who spend their free time programming will get passed on and the extroverted engineer who spent their free time partying will get hired.
Re:Important Team and Business Changes
by jross225 on Thursday May 04, 2023 @12:56PM
(#35818547)
Lol, no.
1. That is a very deterministic statement
2. This is a part of the process, not the entire process. There are still technical elements tested during the interview.
3. The signal that they are looking for, but do not tell candidates, is a story about overcoming obstacles.
What I will say about the lifestory, is that it aligns with the skillset required to do well in a corporate environment. Namely telling stories, being relatively interesting, and having some ability to sell yourself and your accomplishments (in addition to being technically competent which is tested elsewhere).
Re:Important Team and Business Changes
by symlinkk on Thursday May 04, 2023 @12:59PM
(#35818594)
“Yeah, we see here that you developed your own machine learning framework in your free time. That’s great and all, but jross225 didn’t find you interesting enough, so we’re going to have to pass, sorry.”
Re:Important Team and Business Changes
by amrocha on Thursday May 04, 2023 @02:04PM
(#35819628)
If you developed an ML framework in your free time and can't tell a compelling story about it in 45 minutes then I probably don't want to work with you either
Re:Important Team and Business Changes
by umeshunni on Thursday May 04, 2023 @12:57PM
(#35818554)
Uh. I hope this was for a non-technical role. Otherwise, it sounds like a bad idea and best and a torturous thing that filters out a lot of non-native, non-extroverted people.
But then again, that's probably why the environment seems 'fun'
Re:Important Team and Business Changes
by amrocha on Thursday May 04, 2023 @02:01PM
(#35819586)
Being able to communicate empathetically with your coworkers is a core competency for technical workers too. There's a difference between an introvert and an asshole.
Re:Important Team and Business Changes
by projectazorian on Thursday May 04, 2023 @03:37PM
(#35820985)
Asking people to tell their "life story" in a job interview seems like a sign of boundary issues, not empathy. An empathetic person would realize that people come to job interviews expecting to talk about their professional experience, so it isn't the appropriate environment to ask such an invasive question.
Re:Important Team and Business Changes
by amrocha on Thursday May 04, 2023 @09:38PM
(#35824323)
You choose what to talk about and what to share. It's open ended to give you the ability to share as much as you're comfortable with. You can tell the story of your career, no need to get any more personal unless you want to.
Re:Important Team and Business Changes
by waboremo on Thursday May 04, 2023 @02:08PM
(#35819676)
You've interviewed at places that didn't require you to talk about yourself?
Just because Shopify might name it something specific, doesn't mean it's all that unique. Some companies hold this potion entirely on a first/second phone call, others might having an initial section of the interview dedicated to talking about yourself and your experience.
Not sure how this weeds out non-native or non-extroverted people, both of whom are very capable of talking about their experiences. It would be great if you wouldn't infantilize them.
Re:Important Team and Business Changes
by projectazorian on Thursday May 04, 2023 @03:41PM
(#35821052)
This is a strawman. Nobody is saying that people should not have to talk about themselves in job interviews. What people are saying is that "tell me your life story" comes off as creepy and invasive in a professional context where the parties don't know one another.
Re:Important Team and Business Changes
by shakesbeard on Thursday May 04, 2023 @02:38PM
(#35820135)
Huh? I'm an introvert and I can communicate and actually like interacting with people. But I'll need time for myself to re-charge afterwards. But everyone needs to re-charge somehow.
Re:Important Team and Business Changes
by organsnyder on Thursday May 04, 2023 @10:11AM
(#35815618)
I'm still at Shopify (even after today). I can confirm that the colleagues I'm losing are just all around great humans—in addition to having good technical chops. The hiring process optimizes for nice colleagues, and it seems to have worked quite well.
Re:Important Team and Business Changes
by data-ottawa on Thursday May 04, 2023 @02:14PM
(#35819767)
Former Shopify here, there are a lot of really special people going today.
People who mentored me, who work hard, and do high quality work, and people who really carried the best of culture of the company (both technical and personal culture).
Re:Important Team and Business Changes
by joenot443 on Thursday May 04, 2023 @10:38AM
(#35816073)
The buddies I made at my first internship at Shopify are friends I still chat with to this day, despite us living all over the continent. I think that was my fourth of five co-ops, but it was by far the most socially stimulating.
I'm bummed to hear about the layoffs, I hope the culture doesn't suffer too much. Shopify Ottawa was genuinely warm and familiar in a way few tech offices are able to be.
Re:Important Team and Business Changes
by mpalfrey on Thursday May 04, 2023 @12:06PM
(#35817647)
+1 for an awesome interview experience. I had an offer last year which I didn't end up accepting (for various reasons) but I walked away from the process having actually enjoyed it.
Re:Important Team and Business Changes
by simonbarker87 on Thursday May 04, 2023 @01:00PM
(#35818615)
I got the whole way through to the end of a senior backend role a couple of years back and the process was very enjoyable because of the people.
Sadly I got vetoed by one interviewer for an inelegant game of life solution (first time I’d ever seen GoL and I got bogged down in the middle logic) - never been so disappointed ever as every interview I had went really well on a personal level and (with the exception of that one) all my code was fine.
I hope to see Shopify continue to do well, I’ve used it for over 10 years and love using the platform.
Re:Important Team and Business Changes
by Arubis on Thursday May 04, 2023 @09:42AM
(#35815192)
“We will also keep Slack and internal email open today for everyone so we can share farewells.”
That’s drastically different. Most orgs that’ve run layoffs over the last few years have terminated access immediately, or even before informing those losing jobs.
This feels more human, and I hope it goes well for them.
Re:Important Team and Business Changes
by skizm on Thursday May 04, 2023 @09:59AM
(#35815440)
Most of the tech layoffs this cycle have done the same. Meta and Google left open coms access (email and chat) for at least the one day, pulling other more sensitive access. Definitely a positive change, but if I were a big tech lawyer I'd probably still be nervous lol.
Re:Important Team and Business Changes
by 0zemp2c on Thursday May 04, 2023 @09:54AM
(#35815365)
I think the Irish Farewell is even better, just close the browser and walk away, if you really like your coworkers, you can spare them the uncomfortable conversation, and the Irish Farewell is a tiny way of polluting the culture of the thing that ejected you
Re:Important Team and Business Changes
by TremendousJudge on Thursday May 04, 2023 @12:43PM
(#35818302)
The same way an anonymous internet person defaults to male American, "European" defaults to "Western Europe", which actually means "The original EU members, plus maybe England"
Re:Important Team and Business Changes
by callmeed on Thursday May 04, 2023 @11:54AM
(#35817440)
We also did this when we did a layoff last month (announcement was on a wednesday and people had access to email through the week). Agree with your sentiment.
Re:Important Team and Business Changes
by fishtoaster on Thursday May 04, 2023 @12:23PM
(#35817952)
Well that's certainly nice!
The last time I got laid off was from a fintech company while WFH. It went like:
8am: Mysterious all-hands appears on all our calendars
10am: All-hands happens, layoffs announced
10:45am: Meeting with my manager happens
11:00am: I'm mid-slack-message with my team trying to coordinate a quick goodbye zoom chat when my laptop is remote-wiped and all access was cut off.
I totally understand why you'd do that and don't really fault them, but it certainly was a bummer. If you can safely do otherwise, it's a really nice gesture.
Re:Important Team and Business Changes
by ipsi on Thursday May 04, 2023 @12:35PM
(#35818161)
I was laid off recently, and my now-former employer initially disabled accounts immediately, then reversed their decision and reactivated them (all while I was asleep). The first I knew that something was a bit awry was when I opened my laptop in the morning and saw I'd been logged out from Slack and removed from the GitHub org. The HR meeting invite then made it very clear what was going on and I wasn't permanently locked out until after that, a few hours later.
Re:Important Team and Business Changes
by mabbo on Thursday May 04, 2023 @12:58PM
(#35818579)
It let me exchange personal email addresses with a lot of great friends I won't get to work with anymore. I truly appreciate that Shopify did that for us.
Re:Important Team and Business Changes
by ben1040 on Thursday May 04, 2023 @01:49PM
(#35819406)
Dropbox did it this way last week as well. The employees who were laid off were removed from work-related Slack channels but they had access to social channels and DMs so they could say goodbye.
Re:Important Team and Business Changes
by jacques_chester on Thursday May 04, 2023 @02:45PM
(#35820236)
It's not open access.
Right now I can't access any Slack channels, I can't access Google Drive/Docs, I can't send an email to an external address. I can only DM people and email people in the company.
In about 15 minutes I'll be shut out entirely.
As far as such things go it seems like a reasonable balance of humane consideration and legal prudence.
Re:Important Team and Business Changes
by pastor_bob on Thursday May 04, 2023 @09:42AM
(#35815198)
>Logistics was clearly a worthwhile side quest for us, and started to create the conditions for our main quest to succeed. From the beginning, we worked with lots of partners on all aspects of this same problem: warehouses, robotics, transportation, crossdock, freight. We iteratively built a solution, step by step, through software, leases, and M&A deals, that could be an independent company one day. Shopify was the perfect place to bootstrap this effort from 0 to 1 and we have done this. The next step is to take what we have and take it from 1 to N as a main quest.
I don't understand the point of a statement like this. Why not just admit logistics turned out to be a sunk cost and you're abandoning it, rather than say "We actually killed it!"
Re:Important Team and Business Changes
by bombcar on Thursday May 04, 2023 @10:40AM
(#35816108)
I read it as "this works, but it's not our core competency so we will sell it off" - whether they're pulling one over on the company and it'll die immediately remains to be seen.
Shipping is getting expensive across the board, which might be part of it.
Re:Important Team and Business Changes
by boringg on Thursday May 04, 2023 @10:59AM
(#35816421)
I think you've nailed it on the head. I think they've now offloaded a key piece of e-commerce which they now have less control over their own destiny. Flexport is going to have to make margins as well which is going to get pushed onto the consumer at the end of the day which drives up prices, decreases demand. Tricky future incoming.
Re:Important Team and Business Changes
by bombcar on Thursday May 04, 2023 @11:14AM
(#35816668)
If you know a portion of your business is going to get more expensive, it can be very nice to disassociate yourself from it - now people will be saying "Flexport screwing me, what other options do I have" instead of "Shopify is screwing me". A similar thing happened when eBay and PayPal stopped being connected at the hip.
Re:Important Team and Business Changes
by ipaddr on Thursday May 04, 2023 @01:07PM
(#35818725)
This a Canadian company which means you can get upto 2 years of pay via the courts. This stops most lawsuits but the one month for every year standard could mean some will sue. Older workers should sue because 4 months is not enough time to find similiar work
You could be over 50 work for a month and be entitled to 9 months pay. Talk to a lawyer before you sign
Re:Important Team and Business Changes
by mortenjorck on Thursday May 04, 2023 @10:55AM
(#35816346)
> That said: where do I sign up for 16 weeks of severance pay?
The cruel irony is that having Shopify on your resume will open a lot of doors and likely result in a shorter job search than those laid off from lower-profile companies with less severance.
For point of comparison, my no-name series-D gave us a little over two weeks… and I’m unfortunately still looking 20 weeks later.
Re:Important Team and Business Changes
by the_only_law on Thursday May 04, 2023 @10:58AM
(#35816406)
Yeah, I was laid off from a no name SaaS company owned by a PE firm. Most of my resume is either no names or known names, but in non prestigious, non tech companies
Absolutely dreadful job search. Six months and nothing. A couple of awkward interviews that went nowhere. No one will touch me, and the few that do have pretty obvious issues. Meanwhile, friends that have well known names on their resume (even if it’s for infamy) are doing fine.
Re:Important Team and Business Changes
by ejb999 on Thursday May 04, 2023 @12:37PM
(#35818180)
Could work the other way to for some people, imo - some folks I know won't even consider interviewing ex-google, ex-meta, ex-amazon folks, thinking they have been overpaid and/or pampered for years, and even if they are temporarily willing to accept a much lower salary, will be the first out the door when another better paying opportunity comes along and/or the FAANGS start hiring again.
The picture painted in the media of these 'pampered' employees - true or not - does affect the perceptions of some hiring managers.
Re:Important Team and Business Changes
by ilamont on Thursday May 04, 2023 @10:53AM
(#35816312)
Shopify was the perfect place to bootstrap this [logistics] effort from 0 to 1 and we have done this. The next step is to take what we have and take it from 1 to N as a main quest.
Then he says they're selling to Flexport, an act which doesn't sound like a "main quest" at all ... it sounds like it's a difficult side quest being offloaded to someone else.
For Shopify customers: What does this mean for shops using Shopify Fulfillment Network?
Re:Important Team and Business Changes
by tgtweak on Thursday May 04, 2023 @11:10AM
(#35816616)
SFN was just deliverr anyway so it will likely continue in that sense under flexports banner. Since Shopify sold it as an equity swap they still have an interest in promoting it and keeping it in house.
The bigger picture here is that Shopifys visions of becoming an aggregate Amazon and competing in this space are dwindling.
Re:Important Team and Business Changes
by adrr on Thursday May 04, 2023 @12:46PM
(#35818361)
I do wonder what shopify's vision is now. I figured they wanted to be the next Tmall with merchant customized storefronts but on a unified stack including logistics. They have the best opportunity to take on Amazon since all the brands hate Amazon and there is a big desire to control presentation from the brands. Brands don't care about fulfillment except cost and shipping speed and most outsource it to a large 3PLs.
Re:Important Team and Business Changes
by tgtweak on Thursday May 04, 2023 @11:19AM
(#35816792)
Not great honestly, the only redeeming factor was the onsite delivery eta logic (since SKU locations and customers location was internal) and the lift from displaying that on the site ("get it by tomorrow"). The costs, receiving SLAs and difficulty with any hands on help was worse than the other dedicated 3PL companies.
Re:Important Team and Business Changes
by bartread on Thursday May 04, 2023 @11:20AM
(#35816814)
"We are changing the shape of Shopify significantly today to pay unshared attention to our mission."
What a way to lead, and what an absolutely grotesque euphemism (not to mention a barbaricly tortuous use of English). Why do companies write like this? It's just awful.
I'm only half-joking when I suggest that if they'd taken this text and asked GPT-4 to rewrite it in a compassionate tone they'd have got a better result. (I say this having used GPT-4 quite regularly in recent weeks, although not for these kinds of purposes. It's quite impressive, along many axes, and I'm confident would have made a decent fist of this piece.)
Re:Important Team and Business Changes
by bartread on Thursday May 04, 2023 @12:15PM
(#35817815)
It is indeed. Not my bag at all but I've edited my original comment because a lot of the stuff further down, RPG references aside, is decently written, and there clearly is some compassion there. Severance terms are, as these things go, generous as well, and certainly a lot more than many companies would have done.
Re:Important Team and Business Changes
by nickstinemates on Thursday May 04, 2023 @03:08PM
(#35820578)
To be fair, it shows some character/culture/? which makes it stand apart from all of the other corporate releases out there. If it were good news it'd certainly hit different.
Re:Important Team and Business Changes
by nsoldiac on Thursday May 04, 2023 @01:00PM
(#35818621)
This. Not to say companies always get comms right, quite the opposite, but there's entire org structures filled with people dedicated to crafting these communications and the decisions about wording and audience are probably debated to death internally. My personal hell, but I have to acknowledge it's existence and purpose.
Re:Important Team and Business Changes
by mikeryan on Thursday May 04, 2023 @12:53PM
(#35818490)
This looks worse out of context. The next sentence is pretty clear on what's going on.
There are a number of consequences to this, and I don’t want to bury the lede: after today Shopify will be smaller by about 20% and Flexport will buy Shopify Logistics; this means some of you will leave Shopify today
Re:Important Team and Business Changes
by d4mi3n on Thursday May 04, 2023 @04:40PM
(#35821755)
Shopify is a bit weird in that the CEO Tobi has controlling shares in the company. Short of embezzlement or intentionally destructive behavior he's effectively unaccountable to anyone but his own stock portfolio.
Re:Important Team and Business Changes
by judge2020 on Thursday May 04, 2023 @01:38PM
(#35819232)
> they'd taken this text and asked GPT-4 to rewrite it in a compassionate tone they'd have got a better result
Today, we're making some substantial changes at Shopify, all with the aim of focusing more intently on our mission. We believe these adjustments will help us better serve our community and we're excited about the journey ahead.
Re:Important Team and Business Changes
by mabbo on Thursday May 04, 2023 @09:30PM
(#35824289)
As someone who was laid off by Shopify today, I can say this: the document was written well for the audience it was meant for.
It was genuinely Tobi. That's how he talks and writes. That's exactly the analogies he would use. No PR person anywhere would write this letter for him.
Also, he is wildly obsessed with LLMs. I would place a large money bet that he did have GPT help him edit this document.
Re:Important Team and Business Changes
by susanasj on Thursday May 04, 2023 @12:41PM
(#35818252)
Shopify shares up 25% today, which explains most of what's happening here.
I agree with all the other comments criticizing the CEO's leadership of furiously hiring and now making massive cuts, but I think that is missing the context that the CEO does not answer to you or me, or to business professors, or to his employees. He answers to the board, which typically care about stock price and not much else. Today is a massive success in that regard.
Re:Important Team and Business Changes
by bryanmgreen on Thursday May 04, 2023 @12:53PM
(#35818498)
As a Shopify user, I am conflicted about the Flexport acquisition.
On one hand, it was really nice having a fulfillment partner directly related to the webstore. It gave a sense of harmony for future growth of services. From a stock perspective, it was a money suck, but hey, look at Amazon.
On the other hand, the Shopify web platform feels a little neglected and I hope this will allow them to re-focus. From a stock perspective, maybe this will help get their immediate finances in order.
They've made some solid improvements and additions, but there are a lot of little things that need attention. One of my quibbles is that you can't make private or unlisted products. They're either visible to everyone, or disabled. There are a lot of people asking for that feature, and it's not a hard one to implement. There are a lot of things like this that probably wouldn't take a lot of resources to implement but would significantly improve the merchant experience.
Re:Important Team and Business Changes
by mabbo on Thursday May 04, 2023 @03:46PM
(#35821106)
I'm impacted. And it sucks.
It sucks because I really liked the company. I liked the culture. I liked the leadership style. I liked the mission. I genuinely think that company is doing good for the world, and making money in the process.
The challenge now is that the leadership have burned a lot of trust with the employees. They repeatedly said no more layoffs were coming, but with this move they all benefitted financially quite well- the stock is up 25%.
The move deeply undermines the company culture that they worked so hard to build. I hope Tobi has a plan for how to repair that damage.
Re:Important Team and Business Changes
by d4mi3n on Thursday May 04, 2023 @04:35PM
(#35821705)
Same boat. I thought something was bound to happen based on chatter and signals I was seeing. Weird and contradictory comms around budgets. Noises about manager/employee ratios. Timing of financial reports and stock trading blackout periods.
I was around for layoffs last year and I found it very surprising that nobody made more noise about the fact that executives never shared the hard numbers they used to make their layoff decisions. I'll be very curious to hear chatter over the coming weeks around how they rationalize these layoffs.
If nothing else, stock prices tell a pretty cynical story.
Re:Important Team and Business Changes
by deltree7 on Thursday May 04, 2023 @04:16PM
(#35821478)
I'm sorry for you.
The CEOs / Executives are literally appointed by the board who in turn are voted in by shareholders. It is their job to increase the share price.
The world is better of with efficient capital deployment.
So, I don't understand how the smartest people in this world don't understand the fundamental working of capital markets.
Note: it's the same shareholders that have allowed to get $200-$300k TCs when smart people around the world toil the same as you for $60k. So, you can't have it both ways
Re:Important Team and Business Changes
by spacemadness on Thursday May 04, 2023 @04:28PM
(#35821626)
Yes, the first thing I tell someone laid off is that the world is better off with efficient capital deployment. They should know better and not have any emotional reaction. It’s purely logical after all. The CEO should have put that in the letter.
Re:Important Team and Business Changes
by deltree7 on Thursday May 04, 2023 @04:54PM
(#35821928)
Then he should stop ranting about Executive pays.
You can't have it both ways. Start misinformation about how capital markets work and not expect to be corrected.
HN is a discussion forum. If an incorrect fact or misguided opinion is shared, it will be debated.
I'm sympathetic to OP, but I also understand the dangers of misinformation and the resulting brainwashing of anti-capitalistic movement it causes and I will protect capitalism.
Re:Important Team and Business Changes
by deltree7 on Thursday May 04, 2023 @05:38PM
(#35822431)
I lived in a country which had
democracy + socialism
democracy + capitalism.
One period marked poverty, child mortality, While the other marked good standard of living and reduced child mortality.
I'll let you guess and pick the confounding variable from the equation. That's the advantage of independent thinking vs brainwashed-by-liberal-universities (and thank god I didn't study in some brainwashed liberal university)
Re:Important Team and Business Changes
by jpmoral on Thursday May 04, 2023 @08:27PM
(#35823913)
> The CEOs / Executives are literally appointed by the board who in turn are voted in by shareholders. It is their job to increase the share price.
This is a meme that needs to die.
> The world is better of with efficient capital deployment.
Even if this were true, rising share prices don't necessarily indicate efficient deployment. Chasing short-term share price increases often incentivises behaviour detrimental to company in the long-term.
Re:Important Team and Business Changes
by jpmoral on Saturday May 06, 2023 @09:43PM
(#35847073)
> Just because you laid of people doesn't mean they aren't thinking long term.
That's not what I said at all. My point was that a rising share price and actions taken to influence that do not necessarily indicate that capital has been efficiently deployed.
> Really how can reddit/HN and social media be so blind about this when they have data screaming at them?
Maybe don't start with the assumption that everyone else is an idiot.
Re:Important Team and Business Changes
by regularjack on Thursday May 04, 2023 @10:35PM
(#35824636)
Smart people, as you put it, know that empathy plays a role in the world. It's possible to understand how capitalism works, while not being a sociopath.
Re:Important Team and Business Changes
by t3hz0r on Thursday May 04, 2023 @05:32PM
(#35822361)
Same here, and I totally agree.
This was a job I looked forward to each morning. It was just a fun place to work full of talented people and a great culture. There were exciting projects in the works and I wanted to keep being a part of them. My time was cut short and it's disappointing to say the least.
They tried to hire people who care and that showed in the daily interactions. It's in stark contrast to today's actions and I won't be so trusting again.
Re:Important Team and Business Changes
by gregors on Thursday May 04, 2023 @07:37PM
(#35823557)
>>> I hope Tobi has a plan
This is a cut throat game of capitalism, you do know that right? He's going to be rewarded for making these cuts. There is no downside for the winners.
Hope.....unfortunately that's not how the game is played. Unions, worker protections, and taxes on the wealthy those are real actionable goals.
Re:Important Team and Business Changes
by mabbo on Thursday May 04, 2023 @09:26PM
(#35824263)
Look, I spent a decade at Amazon working for Jeff Bezos and the horde of sociopaths he enabled. I know how it goes.
Tobi has never given me the impression that he's a sociopath. It's part of why I wanted to work for Shopify. I used to joke that "'Shopify is the no assholes company.' 'But what about Kaz?' 'It's the no assholeS company- we're allowed one!'". But honestly, even my view on Kaz softened up over time.
Either the leadership at Shopify are genuinely nice people trying their best, or they are way better than the Amazon leadership at hiding their sociopathy. But either way, it felt nicer working for them.
Re:Important Team and Business Changes
by rcme on Thursday May 04, 2023 @10:12PM
(#35824530)
I think you can come across as not being asshole while still being a sociopath willing to throw others under the bus for your own personal gain. And even if you're not a sociopath, everyone has a price.
Re:Important Team and Business Changes
by jesterson on Friday May 05, 2023 @02:45AM
(#35826009)
> I genuinely think that company is doing good for the world
You can't be serious... What good those bunch of [censored] could possibly do?
As a merchant - worst decision ever was made to work with them. Wasted tens of thousands of dollars for nothing. Everything is bad - tech, support, "dedicated manager", API, plainly everything is horrible.
Re:Important Team and Business Changes
by boo-ga-ga on Thursday May 04, 2023 @03:51PM
(#35821169)
Why do the stocks of tech companies grows every time the do layoffs? Is it a sign that the management is ready to do bold and unpopular decisions, or what?
Re:Important Team and Business Changes
by IndoorPatio on Thursday May 04, 2023 @05:25PM
(#35822292)
I've seen little evidence that a company can thrive after 20% workforce cuts. Whatever successes Shopify has had, it's safe to say those days are done.
Re:Important Team and Business Changes
by ant_li0n on Friday May 05, 2023 @09:46AM
(#35829113)
I was hired in Aug 2022, laid off yesterday.
Looking at it from their perspective, I would have made the choice to lay me off (or fire me). The reality is that I just did not get enough meaningful project work. I talked to my manager frequently and it was always something "just around the corner". My manager went on parental leave 3 months after I started. Pretty much everybody took most of December off. Our division did a re-org which shook everything up, wasted more time. I didn't get any meaningful projects until the start of February, my 6th month of employment at Shopify. I was doing really well there, felt good about my work and my contribution, whereas I'd been floundering for 6 months with impostor syndrome and existential crisis.
But it was just too late. I got the axe. I don't feel too personally bad about it, although I hate interviewing and have performance anxiety when it comes to technical interviewing stuff. I want to take time off to rest but I'm afraid I'll use all my savings up and still not have a job.
I wasn't there long enough to really know for certain, but I feel like part of the problem is the monolithic nature of the codebase. Getting projects greenlit required a bunch of political wrangling and convincing of the senior leadership team by the product folks. Things just moved really slowly. The "Get Shit Done" (I kid you not, that's what they call it) process of shipping projects seemed interesting but nobody really followed the documented process. I got the feeling it was a lot of back channel conversations, gate keeping by higher up folks, with people every step of the chain asking themselves, "Will this decision make me look more impactful in my upcoming review?". Kinda feels like the way I imagine the bureaucracy of the Soviet Union operated.
I don't know. I have a lot of feelings about all of it, I'm personally really sad because I feel like I really had something to offer, something to contribute, but I spent most of my time just fucking around. Scale that up to a company the size of Shopify and it's just a tragic waste of human potential. But they will just pat themselves on the back, congratulating themselves on "making difficult decisions".
The 16 weeks severance is nice though. Takes the edge off.
What law? I’m not criticizing Spotify at all for this decision, I’m just genuinely curious. A few other companies recently are giving away the laptops so I’m wondering what is different here.
It would be difficult for a IT department to guarantee, for sure without replacing the internals of the device, that the device doesn't contain sensitive information. Probably easier from an inventory and IT security perspective to just capture every device than try and coordinate with individuals to reformat, etc.
(for the same reason, some companies outright destroy old devices instead of reselling.)
Secondly, would you want to have a computer which your previous employer can wipe your disk at any time?
So all in all probably a good thing for both parties.
If they give away the laptop, it will be difficult to guarantee and verify that the data is wiped out entirely within whatever time frame they are aiming for. So, they want their property back.
I too am guilty of using work laptop for personal work like shopping etc couple of times.
Personal anecdote:
one of my colleagues was recently discussing about replacing his 6 year old laptop that he rarely uses, one of our architects commented : "I don't understand why anyone would need a personal laptop at home. We can use our work laptop for anything that our mobile can't do". I was surprised to hear that from an architect and even more surprised to see many others nod in agreement.
Edit: fixed a typo
If I were a senior government official or in some other high profile/sensitive role I'd probably be more conservative but it's pretty common to use some combination of personal and business-issued devices for everything.
Lots of possible reasons.
The main quest / side quest analogy works so so well!
> “There’s no cuts coming for us,” Harley Finkelstein told The Canadian Press. “We’re in a really good place.”
https://globalnews.ca/news/9494197/shopify-outlook-no-layoff...
Once a coach has to say "[player] has my absolute confidence in their success," you know the player is ~2 weeks from being benched.
Coaches and players... they talk about each other a lot.
Similarly, you don’t ask tech companies if they’re doing layoffs when the sector is booming.
That the question is even asked probably shoots the probability of benching/layoffs up to some ridiculous amount to begin with.
https://www.google.com/search?hl=en&q=taoiseach%20has%20full...
Might be true in other countries but I'm old enough to see this pattern play out a few times.
Or a sign of the kind of delusional optimism that leads to over-hiring.
An organization that has nothing but fairly senior researchers working on separate projects might need little management. An organization with lots of more junior engineers working on something like a rocket (where every part depends on every other part) might need more overhead.
Unrelated, I think that we should stop calling workers individual contributors. I think "workers" is a more fitting description.
"Individual contributor" makes the worker seem smaller and less impactful, as if management is contributing in a way that's superior and bigger than the individual. In reality, only the workers work, and managers manage, doing less work the higher up on the ladder they go.
Don't believe me? Here's a list of CEOs that somehow managed to be CEO of multiple companies at once.
- Jack Dorsey
- Jeff Bezos
- Elon Musk
- Carlos Ghosn
And yet, my employer forbids me from having more than one day job.
It arose from the assumption that managers have finite amounts of time and energy to spend with their people and their jobs.
Analyzing British military leaders, Hamilton found that the leaders could not effectively control more than 3-6 people. These figures have been generally accepted as the "rule of thumb" for span of control ever since, at least in the military where the bulk of my management experience lies.
Research that I have seen hints that people who were in I shaped teams (i.e. single person reporting to a manager) and V shaped teams (2 people reporting to a manager) were much unhappier than larger teams.
Similarly, somewhere close to 10 is when the there is just not enough 'managing' or mentorship happening. I have seen that work only in cases where most of the ICs are senior/staff level and are effectively self-managing.
https://jobs.netflix.com/culture
Also there is benefit of flat orgs which comes with higher ratio in terms of meeting reduction and also communication efficiency both top down and bottom up.
Am I reading this right that they decided they had too many managers, and are laying off some? They don't say it clearly in which direction they thought they were unbalanced, but I think that's the implication of "activities rather than crafter-driven outcomes", or just what is supposed to be the obvious answer when anyone says this is unbalanced?
> too many and you add heavy layers of process, approvals, meetings and… side quests (emphasis mine)
and
> A more fit for purpose Shopify centered on its main quest has less scope creep, fewer meetings, and more shipping great features for our merchants. (emphasis mine)
https://shopify.engineering/shopify-ruby-at-scale-research-i...
>Our numbers were unhealthy, just like it is in much of the tech industry.
Ok, can we consider this in your compensation discussions this year? That you mindlessly followed the crowd and left your company structurally weak? Or do we think you're going to shoot for record compensation this year?
Many important revenue driving products have been mangled by having their teams entirely removed, with pages going completely unanswered.
In at least one case, it seems like an entire team was cut in error.
The company was seriously negatively impacted, but the share price hasn't budged. To the extent that share price is connected to reality, I imagine it will take while for the market to notice the impacts of a layoff
1) wage suppression
2) by hostile take overs inside the company by MBAs, the phase lag between the layoffs and impact on velocity or the bottom line is too long. The second order fire that comes months later gives them an option to look like a hero again.
Most MBAs burn an asset for a short term gain. Period.
Businesses are path dependent, you can't just go "oh, not enough people hire more, oops! too many, fire some!".
For example, in the passive sentence "The tree was pulled down", the subject (the tree) denotes the patient rather than the agent of the action. In contrast, the sentences "Someone pulled down the tree" and "The tree is down" are active sentences.
Most recent layoffs have been framed around needing to focus the company due to economic and market headwinds. This reads like AI has transformed the mission.
What does "A copilot for entrepreneurship is now possible" mean here?
I think this is what is meant here[1]. Not copilot, but the idea is the same.
It is interesting, because 'prompt engineering' is being discussed in the same context. In the video, you will note several interesting bugs generated by GPT. Is it not exciting to see all those bugs in the next few years?
[1]https://www.youtube.com/watch?v=8y7GRYaYYQg
I guess their idea of AI is someone using the ChatGPT API. Good luck if they think they will "hack" some revolutionary AI together with a cowboy hacker culture.
"safety" stocks like AAPL are at all-time highs
real estate has budged slightly, but a rounding error off of the gains made in the last few years
even employment...tech hiring is getting hit but lots of other employers in retail, food & beverage are reporting record hiring and even wage increases
if there is a "crash", it hasn't happened yet
you may just end up with a sucky decade of stagflation...you are poorer every day, but just not dramatically so
But even if that is not your intention, it can come out as dismissive. Many people do worry about the future for very good reasons.
Plan for the future, good or bad, but don't dwell on what you can't control.
They affect me. I don’t give a fuck what the sun does everyday if I can’t pay my rent.
> “la de da nothing is wrong xd it is what it is” attitude
You misunderstood, no one above was taking that attitude.
Easy not to worry when you can't fathom that it may happen to you or your peer.
The other headline is that LLM and ChatGPT is reshaping the tech landscape. Tech companies are laying off engineers so they can hire AI/LLM engineers to compete with ChatGPT. Based on my limited knowledge, OpenAI is head and shoulders above everyone else. Google's Bard is a distant second.
In Jan/Feb posted the exact same job (an additional position) and got over 300 resumes including from ex-FAANG folks who we generally don't see applying).
Something sure has changed imo, and I also personally do believe things are about to get much, much worse for many people.
QoL for most Americans will continue to drop to match USA's precipitous decline in geopolitical status, but even Russia rebounded after just a couple decades. Hey, we got a bunch of O&G as well.
Yeah, not as bad as the CEO laying off 900 people via zoom, and then plying for sympathies at how hard this decision is for him to do.
our entire economy is out of whack in so many areas.
They are treating you like an adult by giving you a nice severance package. I don’t understand the need for people to have companies admit they were wrong.
https://techcrunch.com/2023/05/04/how-shopify-bungled-its-la...
https://techcouver.com/2021/01/06/shopify-to-double-engineer...
Aren’t CEOs paid ludicrously well to make long term decisions, rather than just flail around?
It would mean that _not_ hiring aggressively in a high-inflation period is harmful to business. To me, that is far more interesting to think about than CEOs making dumb mistakes and not getting punished for it because life isn't fair...
Assuming you have some productive use for the incremental employees, the discounted returns from those employees' contributions are decreased by an uncertainty factor and by the risk-free interest rate. When that latter term is near zero, hiring is restricted by the uncertainty of their performance and projects assigned to, meaning you get a lot of hiring by sensible, data-driven management teams.
When Shopify beings hiring again, they are going to be able to hire talent at a fraction of the price.
Also, this is largely a coordinated effort from activist investors specifically targeting large tech salaries. E.g. https://www.businessinsider.com/google-layoffs-cut-jobs-exce...
There is essentially a vicious cycle targeting tech compensation. Activist investors are convincing boards that they're overpaying their tech talent. Then those boards approve layoffs. Then those layoffs further lower salaries. Rinse and repeat.
source: I was a Shopify employee until today and can confirm my salary was closer to FAANG than not.
there are no government engineering positions in Canada paying anywhere close to this
Shopify wasn't paying like FAANG, but also not like a startup. I would say 75% of a FAANG.
The zeitgeist right now is that employee comp is/was simply too high. There have lots of murmurings lately that amount to that at many different levels of the capital chain. Perhaps what's interesting about now is that people are quite okay with saying it openly. Tech is an easy target since it is well-known, and the pandemic inflated the importance of tech artificially to some degree.
Fully grokking the idea that employee comp could be "too high" for the overall health of the economy really did a number on my economic worldview. Gone is the naive belief that rare/valuable skills secure higher salaries over a long period of time. I no longer trust employers to take care of me, and that getting better at building assets (in the form of products, mostly) is something to grow into to supplant and eventually buy out time spent working for someone else.
Feels so incredibly backward.
And yes I know its "stock performance" but what do you think drives this? With executive compensation mostly related to stocks, of course at the end of the day, thats what they want to drive up.
https://www.theguardian.com/business/2023/apr/25/britons-nee...
I settled into a role of research software engineer, where I do both applied research and development, applying a lot of compiler-ish stuff to different domains within cybersecurity, such as building out control flow graphs from binaries, thinking about how to instrument assembly code efficiently, fast pattern matching, and static analysis, where I am currently. The role fits me like a glove, but it isn't for everyone. In my job search, I started at, "I want a job doing compiler work," and eventually broadened scope a few times until I landed on, "I want a job where compiler-type approaches are on the table of possibilities." This offers a wider variety of work, which I like.
I can discuss more over email (check my HN profile) if you'd like, but most of what I know is US-centric due to how funding works for these types of research. Larger orgs like FAANGs also have it, but the pool is much more competitive, as you'd expect.
Those parts you mentioned like the static analysis or control flow graphs sounds cool
While I agree that this is a naive belief to have (at this point in my career I think there's almost a slightly negative correlation between skill and TC) the general talent pool for software engineers has, at least in my experience, dropped tremendously while TC has exploded.
The most important skills for getting high paying jobs in the last few years has been grinding leet code, then grinding systems design etc, etc. Software engineers no longer have "rare/valuable" skills, they have highly commodified, easily replicable skills (at least at the interview level).
Software engineers today simply aren't that skilled (at least on average) despite what they want to believe. It reminds me a lot of dotcom bubble where anyone with a pulse that could turn on a PC could get a high paying job.
AI is already displacing some people from their work. I hate both absolute capitalism and socialism/communism. How can AI help us find a sweet spot?
But what is going away, permanently, is the space between extremes. Pour one out. I miss it already.
Wouldn't it be the opposite? When the market recovers, they'll competing with everyone else for talent, when instead if they held onto their talent, they could be paying less.
What I've been told about Shopify is that they were seen as a good place to get "western" experience before jumping ship (often for folks who couldn't pass the higher bar for US immigration) because they were already not very competitive with companies in the valley.
If you're going to suggest 9/10 is also a fraction or something I'll counter that 4/3 is also a fraction, and no one uses "a fraction of the price" to refer to an increase in price
Is there evidence of this now?
What I see is a small fraction of the open roles I'm used to seeing.
Compensation, on the other hand, is the same at these big companies. If not even higher than it was a couple years ago.
"Back where you started" with a now highly demotivated team isn't quite back where you started.
>>Our numbers were unhealthy, just like it is in much of the tech industry.
But that didn't prevent him from profiting from it nor from the layoffs.
To be completely honest, I've never been bullish on Shopify. To me it looked like a "mee too" play for investors that missed the boat on Amazon, Square and Stripe.
CEO's are neither prophets nor oracles. They are effectively dice-rolls with a face. Not rollers, but rolls. No matter what, sometimes you get bad numbers.
Founder CEO's like Lutke are heroes. They have skin in the game. This forces them to calculate their risks. Their actions and decisions have greater weight because of this - their payday is not guaranteed, especially early on in the game.
Non-founder CEO's are rent-collectors. They have no skin in the game. Unlimited upside and no downside. They get a handsome payday no matter what.
Non-founder CEO's and the absence of skin in the game is what yields the bastardy that is modern corporatism: highly-paid people who can flail around all they want and still land on their feet.
In this case, Lutke made a bad bet, but with Shopify's success, he's at the point where the result of his bets have no impact on him. He already got his payday.
But they also captain their first large enterprises: do they know what they're doing? Can they transition these firms into businesses that will endure? Or will they capriciously chase shiny objects while they waste the trust and goodwill of investors, the people who work there now, and the people who will want to work there in the future? They might have seeded the garden, but it took thousands of smart people to build it up, and it takes a constant supply to maintain it.
A new CEO will probably be rich, sure, but not "endow a historical dynasty" rich, and might know how to take a successful company and reposition it for the long term. Maybe the younger guys can do it. But it would just be for vanity at this point.
Musk has reminded me that even billionaires are one accidentally legally binding agreement away from pissing away $40B
There is no tangible difference between being worth $1B and $100B beyond social cachet. It is impossible to spend meaningful money at that level.
Then why are they compensated like they're gods?
John Tuld : So, what you're telling me, is that the music is about to stop, and we're going to be left holding the biggest bag of odorous excrement ever assembled in the history of capitalism.
Peter Sullivan : Sir, I not sure that I would put it that way, but let me clarify using your analogy. What this model shows is the music, so to speak, just slowing. If the music were to stop, as you put it, then this model wouldn't even be close to that scenario. It would be considerably worse.
John Tuld : Let me tell you something, Mr. Sullivan. Do you care to know why I'm in this chair with you all? I mean, why I earn the big bucks.
Peter Sullivan : Yes.
John Tuld : I'm here for one reason and one reason alone. I'm here to guess what the music might do a week, a month, a year from now. That's it. Nothing more. And standing here tonight, I'm afraid that I don't hear - a - thing. Just... silence.
Shopify being a beneficiary of both the government mandated lockdowns and the Fed backed investment bubble really had no option but to dramatically increase headcount. Their business literally doubled from 2020-2021 due these actions.
To believe in 2021 that in 2022 the Fed would undergo the most aggressive tightening cycle in history triggering significant headwinds for both startups like Shopify and their small business customers was absurd. At the time the Fed was saying that they weren't "even thinking about thinking about raising rates" so you basically had to assume that Fed lacked all credibility.
I guess what I'm saying here is that there is a reason why so many companies got this wrong beyond incompetence. So if you don't like it you should consider redirecting your outrage.
Shopify was just a really fun place to work. And in part this was because they did a really good job of interviewing. Technical, yes, but in particular behaviorally.
So I can honestly say that many of the colleagues I know being let go are truly great colleagues. They were some of the most impactful people I worked with in my org (discovery) and they are a great get for any company.
The interview was conducted by the recruiter and while she didn’t flat out ask personal questions, she asked questions that would almost cause me to reveal personal information such as my marital status and sexuality. It was not fun coming with made up responses to avoid that because it’s none of her business.
There’s a reason interviews should stay professional. I’m surprised they haven’t been sued.
With that said, there are lots of reasons why a company might want to vet candidate attitude besides discriminating based on protected characteristics.
Out of curiosity, what kind of questions did you find invasive or discriminatory?
I get that it's totally an innocent intent, but there are much better ways to assess a candidate's soft skills, that is strictly related to their professional experience.
Many if not most people find us a desirable attribute in coworkers and workplaces. I get that it's not for everyone, but not every workplace is a good fit for everyone.
I think you're getting some rude comments because of exactly this fact
fwiw, when I interview candidates in a technical interview, I still attempt at some small talk to get a sense of "can I have a normal conversation with this person"
(appreciate the sensible responses btw!)
(The two options that work here are to post something thoughtful and substantive, or not to post.)
https://news.ycombinator.com/newsguidelines.html
1. That is a very deterministic statement 2. This is a part of the process, not the entire process. There are still technical elements tested during the interview. 3. The signal that they are looking for, but do not tell candidates, is a story about overcoming obstacles.
What I will say about the lifestory, is that it aligns with the skillset required to do well in a corporate environment. Namely telling stories, being relatively interesting, and having some ability to sell yourself and your accomplishments (in addition to being technically competent which is tested elsewhere).
But then again, that's probably why the environment seems 'fun'
Just because Shopify might name it something specific, doesn't mean it's all that unique. Some companies hold this potion entirely on a first/second phone call, others might having an initial section of the interview dedicated to talking about yourself and your experience.
Not sure how this weeds out non-native or non-extroverted people, both of whom are very capable of talking about their experiences. It would be great if you wouldn't infantilize them.
People who mentored me, who work hard, and do high quality work, and people who really carried the best of culture of the company (both technical and personal culture).
Really a shame to see this happen.
I'm bummed to hear about the layoffs, I hope the culture doesn't suffer too much. Shopify Ottawa was genuinely warm and familiar in a way few tech offices are able to be.
Sadly I got vetoed by one interviewer for an inelegant game of life solution (first time I’d ever seen GoL and I got bogged down in the middle logic) - never been so disappointed ever as every interview I had went really well on a personal level and (with the exception of that one) all my code was fine.
I hope to see Shopify continue to do well, I’ve used it for over 10 years and love using the platform.
That’s drastically different. Most orgs that’ve run layoffs over the last few years have terminated access immediately, or even before informing those losing jobs.
This feels more human, and I hope it goes well for them.
The last time I got laid off was from a fintech company while WFH. It went like:
8am: Mysterious all-hands appears on all our calendars
10am: All-hands happens, layoffs announced
10:45am: Meeting with my manager happens
11:00am: I'm mid-slack-message with my team trying to coordinate a quick goodbye zoom chat when my laptop is remote-wiped and all access was cut off.
I totally understand why you'd do that and don't really fault them, but it certainly was a bummer. If you can safely do otherwise, it's a really nice gesture.
Right now I can't access any Slack channels, I can't access Google Drive/Docs, I can't send an email to an external address. I can only DM people and email people in the company.
In about 15 minutes I'll be shut out entirely.
As far as such things go it seems like a reasonable balance of humane consideration and legal prudence.
I don't understand the point of a statement like this. Why not just admit logistics turned out to be a sunk cost and you're abandoning it, rather than say "We actually killed it!"
Shipping is getting expensive across the board, which might be part of it.
I know this sounds insensitive but I am slightly envious
Edit: am dumbass. plus one week per year of tenure as corrected below. Still not bad IMO
You could be over 50 work for a month and be entitled to 9 months pay. Talk to a lawyer before you sign
That said: where do I sign up for 16 weeks of severance pay?
The cruel irony is that having Shopify on your resume will open a lot of doors and likely result in a shorter job search than those laid off from lower-profile companies with less severance.
For point of comparison, my no-name series-D gave us a little over two weeks… and I’m unfortunately still looking 20 weeks later.
Absolutely dreadful job search. Six months and nothing. A couple of awkward interviews that went nowhere. No one will touch me, and the few that do have pretty obvious issues. Meanwhile, friends that have well known names on their resume (even if it’s for infamy) are doing fine.
The picture painted in the media of these 'pampered' employees - true or not - does affect the perceptions of some hiring managers.
Then he says they're selling to Flexport, an act which doesn't sound like a "main quest" at all ... it sounds like it's a difficult side quest being offloaded to someone else.
For Shopify customers: What does this mean for shops using Shopify Fulfillment Network?
The bigger picture here is that Shopifys visions of becoming an aggregate Amazon and competing in this space are dwindling.
Sad as there is a real solution waiting here.
What a way to lead, and what an absolutely grotesque euphemism (not to mention a barbaricly tortuous use of English). Why do companies write like this? It's just awful.
I'm only half-joking when I suggest that if they'd taken this text and asked GPT-4 to rewrite it in a compassionate tone they'd have got a better result. (I say this having used GPT-4 quite regularly in recent weeks, although not for these kinds of purposes. It's quite impressive, along many axes, and I'm confident would have made a decent fist of this piece.)
https://techcrunch.com/2023/05/04/how-shopify-bungled-its-la...
You aren't the audience, that's why.
https://1fish2.github.io/buzzword-bingo/corp-bingo.html
none yet. Jerry's working on adding weights to the buzzwords.
There are a number of consequences to this, and I don’t want to bury the lede: after today Shopify will be smaller by about 20% and Flexport will buy Shopify Logistics; this means some of you will leave Shopify today
So are they going to fire 20% of the C-suite and upper management as well? :)
If the board doesn't think they are not doing their job, they will be fired.
How is it not difficult to understand for a self-appointed smart crowd?
Today, we're making some substantial changes at Shopify, all with the aim of focusing more intently on our mission. We believe these adjustments will help us better serve our community and we're excited about the journey ahead.
> to pay unshared attention to our mission
...unshared attention?
It was genuinely Tobi. That's how he talks and writes. That's exactly the analogies he would use. No PR person anywhere would write this letter for him.
Also, he is wildly obsessed with LLMs. I would place a large money bet that he did have GPT help him edit this document.
Is this on top of the layoff they had a few months ago? That means Shopify is really about 30% smaller all told.
I agree with all the other comments criticizing the CEO's leadership of furiously hiring and now making massive cuts, but I think that is missing the context that the CEO does not answer to you or me, or to business professors, or to his employees. He answers to the board, which typically care about stock price and not much else. Today is a massive success in that regard.
On one hand, it was really nice having a fulfillment partner directly related to the webstore. It gave a sense of harmony for future growth of services. From a stock perspective, it was a money suck, but hey, look at Amazon.
On the other hand, the Shopify web platform feels a little neglected and I hope this will allow them to re-focus. From a stock perspective, maybe this will help get their immediate finances in order.
They've made some solid improvements and additions, but there are a lot of little things that need attention. One of my quibbles is that you can't make private or unlisted products. They're either visible to everyone, or disabled. There are a lot of people asking for that feature, and it's not a hard one to implement. There are a lot of things like this that probably wouldn't take a lot of resources to implement but would significantly improve the merchant experience.
> don’t want to bury the lede: after today Shopify will be smaller by about 20% and Flexport will buy Shopify Logistics;
Does that mean layoffs AND part of their company being sold off.
Or does it mean employees being reassigned because part of the company is being sold off?
Granted I don't know much about Shopify.
But when I read things on the face of it ... it sounds confusing.
Expected: 'Shopify lays off 20%'
Actual: 'Shopify will be smaller by about 20%'
It sucks because I really liked the company. I liked the culture. I liked the leadership style. I liked the mission. I genuinely think that company is doing good for the world, and making money in the process.
The challenge now is that the leadership have burned a lot of trust with the employees. They repeatedly said no more layoffs were coming, but with this move they all benefitted financially quite well- the stock is up 25%.
The move deeply undermines the company culture that they worked so hard to build. I hope Tobi has a plan for how to repair that damage.
I was around for layoffs last year and I found it very surprising that nobody made more noise about the fact that executives never shared the hard numbers they used to make their layoff decisions. I'll be very curious to hear chatter over the coming weeks around how they rationalize these layoffs.
If nothing else, stock prices tell a pretty cynical story.
The CEOs / Executives are literally appointed by the board who in turn are voted in by shareholders. It is their job to increase the share price.
The world is better of with efficient capital deployment.
So, I don't understand how the smartest people in this world don't understand the fundamental working of capital markets.
Note: it's the same shareholders that have allowed to get $200-$300k TCs when smart people around the world toil the same as you for $60k. So, you can't have it both ways
You can't have it both ways. Start misinformation about how capital markets work and not expect to be corrected.
HN is a discussion forum. If an incorrect fact or misguided opinion is shared, it will be debated.
I'm sympathetic to OP, but I also understand the dangers of misinformation and the resulting brainwashing of anti-capitalistic movement it causes and I will protect capitalism.
Truly the hero capitalism deserves.
democracy + socialism
democracy + capitalism.
One period marked poverty, child mortality, While the other marked good standard of living and reduced child mortality.
I'll let you guess and pick the confounding variable from the equation. That's the advantage of independent thinking vs brainwashed-by-liberal-universities (and thank god I didn't study in some brainwashed liberal university)
This is a meme that needs to die.
> The world is better of with efficient capital deployment.
Even if this were true, rising share prices don't necessarily indicate efficient deployment. Chasing short-term share price increases often incentivises behaviour detrimental to company in the long-term.
Meta/Google/Amazon/Microsoft are literally investing R&D $ that will pay off 10+ years later.
Yet they all have laid off people.
Just because you laid of people doesn't mean they aren't thinking long term.
Really how can reddit/HN and social media be so blind about this when they have data screaming at them?
> Really how can reddit/HN and social media be so blind about this when they have data screaming at them?
Maybe don't start with the assumption that everyone else is an idiot.
This was a job I looked forward to each morning. It was just a fun place to work full of talented people and a great culture. There were exciting projects in the works and I wanted to keep being a part of them. My time was cut short and it's disappointing to say the least.
They tried to hire people who care and that showed in the daily interactions. It's in stark contrast to today's actions and I won't be so trusting again.
Best of luck to you!
This is a cut throat game of capitalism, you do know that right? He's going to be rewarded for making these cuts. There is no downside for the winners.
Hope.....unfortunately that's not how the game is played. Unions, worker protections, and taxes on the wealthy those are real actionable goals.
Tobi has never given me the impression that he's a sociopath. It's part of why I wanted to work for Shopify. I used to joke that "'Shopify is the no assholes company.' 'But what about Kaz?' 'It's the no assholeS company- we're allowed one!'". But honestly, even my view on Kaz softened up over time.
Either the leadership at Shopify are genuinely nice people trying their best, or they are way better than the Amazon leadership at hiding their sociopathy. But either way, it felt nicer working for them.
You can't be serious... What good those bunch of [censored] could possibly do?
As a merchant - worst decision ever was made to work with them. Wasted tens of thousands of dollars for nothing. Everything is bad - tech, support, "dedicated manager", API, plainly everything is horrible.
good for the world... Seriously?
Looking at it from their perspective, I would have made the choice to lay me off (or fire me). The reality is that I just did not get enough meaningful project work. I talked to my manager frequently and it was always something "just around the corner". My manager went on parental leave 3 months after I started. Pretty much everybody took most of December off. Our division did a re-org which shook everything up, wasted more time. I didn't get any meaningful projects until the start of February, my 6th month of employment at Shopify. I was doing really well there, felt good about my work and my contribution, whereas I'd been floundering for 6 months with impostor syndrome and existential crisis.
But it was just too late. I got the axe. I don't feel too personally bad about it, although I hate interviewing and have performance anxiety when it comes to technical interviewing stuff. I want to take time off to rest but I'm afraid I'll use all my savings up and still not have a job.
I wasn't there long enough to really know for certain, but I feel like part of the problem is the monolithic nature of the codebase. Getting projects greenlit required a bunch of political wrangling and convincing of the senior leadership team by the product folks. Things just moved really slowly. The "Get Shit Done" (I kid you not, that's what they call it) process of shipping projects seemed interesting but nobody really followed the documented process. I got the feeling it was a lot of back channel conversations, gate keeping by higher up folks, with people every step of the chain asking themselves, "Will this decision make me look more impactful in my upcoming review?". Kinda feels like the way I imagine the bureaucracy of the Soviet Union operated.
I don't know. I have a lot of feelings about all of it, I'm personally really sad because I feel like I really had something to offer, something to contribute, but I spent most of my time just fucking around. Scale that up to a company the size of Shopify and it's just a tragic waste of human potential. But they will just pat themselves on the back, congratulating themselves on "making difficult decisions".
The 16 weeks severance is nice though. Takes the edge off.