Spotify will reduce total headcount by 17% across the company

Re:Spotify will reduce total headcount by 17% across the com... by jes5199 on Monday December 04, 2023 @02:57PM (#38522300)

I think that beyond some relatively small number, engineering headcount functions as a demonstration of wealth - it doesn't actually make the product better, it doesn't make you ship faster (Brooks's law). but it makes you look big and important and justifies your market cap

[ Parent | on HN ]

Re:Spotify will reduce total headcount by 17% across the com... by disgruntledphd2 on Wednesday December 06, 2023 @03:32AM (#38541658)

Sales scales as O(N), eng/product should scale at sqrt or log. Ideally, obviously.

[ Parent | on HN ]

Re:Spotify will reduce total headcount by 17% across the com... by elicksaur on Wednesday December 06, 2023 @06:48AM (#38542673)

I want to like this theory, and it seems like there is some social clout aspect to the phenomenon.

But, the bump these companies get in the stock market whenever they do a round of layoffs indicates the market cap is justified by what you would expect.

[ Parent | on HN ]

Re:Spotify will reduce total headcount by 17% across the com... by renegade-otter on Friday December 08, 2023 @11:32AM (#38570869)

Exactly. VCs want to see growth by watching double the engineering headcount on every subsequent visit. It's ALL about optics and burning money for show. But the party is ending.

I have seen it first-hand - company opening a new floor to show growth, but it was half-empty.

They are laying off people this week.

[ Parent | on HN ]