And then when targets aren't met, it is the employees that get shown the door while management gets their bonus.
The companies that are happy getting what they need to keep the lights on, seldom go through such layoff rounds.
Ah but the shareholders can sue the CEO, well this seems to be an US approach to how companies are run.
That's why we have this corporate ritual, which we carry out each year, or even each quarter - a solemn ceremony, where we divide everyone into two groups: the cost centers and the profit centers.
Everyone works in harmony for the same organizational goals, but the people of cost centers also bear an additional, sacred duty, the highest of callings: to give up their employment and prospects for the future, to have their due credit be taken by the people of profit centers and poured onto the altar of the all-powerful Board. It's through this sacrifice of the many, that the symmetry is broken, allowing the year-by-year metrics to continue growing, against all wisdom and the laws of thermodynamics.
This would make some sort of sense if it was honest. For a start, the owners and shareholders are plainly cost centers (they are literally useless sinks of revenue).
If you want to be a profit center, be one.
When the body is in danger of dying should it stop healing the fingernails or the brain?
I literally said the opposite of it. The classification is descriptive, and frequently reevaluated. It'd not a property of a person, but a function of where they currently are in the org chart.
> If you want to be a profit center, be one.
Sure.
> When the body is in danger of dying should it stop healing the fingernails or the brain?
Nothing is dying, though. The body that is the org needs both kinds of centers to function. Like any other system that resists entropy, it has parts that are sacrificed so other parts are preserved.
The brain is the most obvious cost center, consuming nutrients without doing anything to directly provide them. Legs move us towards food, but also away from it, so they're a wash. Eyes and ears are redundant with nose, in these lean times. Hands are essential to pick up food that's in a container we can't fit our face in. Mouth too. Digestive tract, on the other hand, is always complaining for more food and never generating any itself, so it has to go.
Once we've fired everyone but the C-suite, marketing, and accounts receivable, we'll have the most efficient, profit-center only company in existence!
Thanks, I'm cured.
DOW is at 50.000.
HN is weird like that.
With the rise of relatively low-risk ETFs and Index Funds, we get into this kind of strange situation where people who might be able to create value by creating businesses and products will instead just invest into the stock market. On an individual level, this is an objectively good decision; most new businesses fail and most of the ones that don't still don't beat the S&P 500 in growth, and even if you manage to match the S&P that required a lot of effort on your end vs. clicking three buttons on E-Trade. Yes, maybe you'll be one of the happy few who manage to actually grow faster than the S&P, and that's great, if someone in that boat is in that position I wish you all the future success in the world [1].
I'm not judging, I'm no better that the people I'm describing. I don't run a business and I just buy ETFs for that reason; it's relatively low-risk, high-return, and basically zero effort on my end. Now it's created this situation where we a) have an over-reliance on BigCos because all of our money is tied with them, b) a shortage of people who are willing to challenge these BigCos because the risk isn't worth it, and as such we have less diversity and competition in the market.
I have thought about starting a business dozens of times. I have a few projects that I think have a non-zero chance of being something cool that instead just languish in private repos because I am too much of a coward to actually try and make a go of it. I don't really know how to find investors, and even if I knew how I would have to prepare for the (very) high potential of them not funding me, and then I have to determine if it's worth self-funding, and at that point I could just take that same capital I would spend, throw it into VOO or QQQ and likely make more money without any effort.
I doubt I'm unique in this reasoning, especially on this forum. This is a relatively well-educated group (by internet standards) and I suspect a lot of people who frequent this forum are in the same boat that I am; I've seen some very interesting stuff in the "what are you working on?" threads here that I think could become businesses but mostly just end up living on Github accruing 100 stars and then languishing into obscurity.
[1] Unless you've made it to "billionaire" status in which case I doubt you did it in a way that I would describe as "ethical", and I very likely do not wish you any success.
There's basically no consequences for lying when you get to that level, and many incentives to (let's say) embellishing. Jack Dorsey is looking to make billions of dollars because of this announcement. If we find out that the AI reasoning was a bold faced lie (e.g. a leaked email or voicemail or something), I doubt that the stock price will go below what it was priced a week ago as a consequence.
It bothers me. I know some people who were victims of these cuts. These are really smart, hardworking people, and I don't think they're going to be easily be replaced with Claude or Codex, but Jack Dorsey ostensibly does. It has to feel like a slap in the face to think that your employer thinks that you're replaceable with a $20/month subscription.
Though of course, the reasoning doesn't really make any fucking sense to me; if you're 40+% more productive with AI, isn't that a good reason to keep the workforce and have them make more and cooler stuff and/or improve your infrastructure? If it's more productive couldn't you make a lot more stuff and blow your competitors out of the water? Presumably a good chunk of those who just got laid off are going to go work for your competitors, and presumably the competitors will have access to the same OpenAI or Anthropic subscriptions that you have.
