4 ms·

Management fails utterly in decision making and employees suffer by layoffs. I don't see a bright future for Digg ahead given these actions. Edit: This is on

Management fails utterly in decision making and employees suffer by layoffs. I don't see a bright future for Digg ahead given these actions. Edit: This is on the basis that the layoffs will likely not be management.

timdorr 16y ago
They just got a new CEO, so this is the new guy coming in and cleaning up the mess, so to speak. He's doing what needs to be done to get back to profitability, so it appears he's doing his job properly.
- invisible 16y ago
  I'd just like to think that a large subset of Digg's employees thought it was a horrible to launch v4 and another smaller subset thought it was a great idea. My guess is most of the larger subset will suffer.
- jpablo 16y ago
  I remember an article a few months back were someone argued that layoffs was a tipping point for companies. The argument was that after the first round of layoffs everyone in the company feel a little less secure about their job and as a result the company stooped innovating. Anyone has that link ?
  - okaramian 16y ago
    I don't have the link, but this really depends on the company and how they handle the layoffs. Like if you have a round of layoffs, but you have employees with faith in the management and the product, you're going to have remaining employees that stick around and work hard. Generally people that don't fall in that mold are going to get laid off in a situation like this. If you have employees that are sitting there with an expectation that the cpmpany will fail, however skilled they might be, they're going to start looking at other options. I think what I'm saying is: the initial tipping point in a case like this isn't the layoff, it's the ensuing fallout. One strategy that I've seen fail is using fear to keep people working. A "you're lucky you're still here" attitude has had people (like myself) out the door on the first other offer they find. An attitude of "this sucks, but we have to do it to stay around, no one is to blame" (which Digg seems to be going with) prevents things from going further south. Something like that can even unite the remaining group in difficult times.
  - VladRussian 16y ago
    having been through layoffs myself, i can say that while layoffs itself are a hit to morale, the "who and how" of the layoffs can either mute or, a much more common case, amplify the effect manifold. Employees taking hit for the management's errors, and as a result increasing the ratio of managers to employees as taking off several people off each team still leaves the same number of managers, directors, VPs, etc... "necessary".
- absconditus 16y ago
  He was also the CEO while they launched Digg 4, which has been a huge disaster and may be what kills the company.
  - ooorrr 16y ago
    Look more closely. He was hired _after_ the Digg 4 launch - likely was agreeing to a contract during the debacle, but certainly arrived afterwards.
    - neworbit 16y ago
      Actually he joined two days before v4 launched. I'm sure there was a healthy amount of "wtf have I gotten myself into" thereafter.
webwright 16y ago
This is how funded startups work. Google and Facebook both grew headcount ahead of revenue. It's basically a hack to use a pile of cash as a business accelerant. Management/founders are in the business of making bets. Sometimes these bets don't pay off-- that doesn't mean it's an "utter" failure in decision making... And these employees aren't "suffering". There are two possible outcomes when you go to work for a heavily funded company and this is one of them. I agree with you about Digg's not-so-bright future.
- ceejayoz 16y ago
  > Google and Facebook both grew headcount ahead of revenue. Ahead of revenue, sure, but they were increasing revenue, traffic, and moving towards profitability. Spending like mad and going nowhere is a different thing entirely.
  - enjo 16y ago
    That only works in hindsight.
  - webwright 16y ago
    The "going nowhere" part happens AFTER the spending like mad part. The all spent like mad in the hopes of going somewhere. Some of them end up being right, which can be a result of clever planning, a runaway market, or blind ass luck.
neworbit 16y ago
The first guy tossed was their VP of Engineering, right after Matt Williams came on board and V4 subsequently crashed and burned. But yes, layoffs will predominantly not be management.

timdorr 16y ago

They just got a new CEO, so this is the new guy coming in and cleaning up the mess, so to speak. He's doing what needs to be done to get back to profitability, so it appears he's doing his job properly.

invisible 16y ago
I'd just like to think that a large subset of Digg's employees thought it was a horrible to launch v4 and another smaller subset thought it was a great idea. My guess is most of the larger subset will suffer.
jpablo 16y ago
I remember an article a few months back were someone argued that layoffs was a tipping point for companies. The argument was that after the first round of layoffs everyone in the company feel a little less secure about their job and as a result the company stooped innovating. Anyone has that link ?
- okaramian 16y ago
  I don't have the link, but this really depends on the company and how they handle the layoffs. Like if you have a round of layoffs, but you have employees with faith in the management and the product, you're going to have remaining employees that stick around and work hard. Generally people that don't fall in that mold are going to get laid off in a situation like this. If you have employees that are sitting there with an expectation that the cpmpany will fail, however skilled they might be, they're going to start looking at other options. I think what I'm saying is: the initial tipping point in a case like this isn't the layoff, it's the ensuing fallout. One strategy that I've seen fail is using fear to keep people working. A "you're lucky you're still here" attitude has had people (like myself) out the door on the first other offer they find. An attitude of "this sucks, but we have to do it to stay around, no one is to blame" (which Digg seems to be going with) prevents things from going further south. Something like that can even unite the remaining group in difficult times.
- VladRussian 16y ago
  having been through layoffs myself, i can say that while layoffs itself are a hit to morale, the "who and how" of the layoffs can either mute or, a much more common case, amplify the effect manifold. Employees taking hit for the management's errors, and as a result increasing the ratio of managers to employees as taking off several people off each team still leaves the same number of managers, directors, VPs, etc... "necessary".
absconditus 16y ago
He was also the CEO while they launched Digg 4, which has been a huge disaster and may be what kills the company.
- ooorrr 16y ago
  Look more closely. He was hired _after_ the Digg 4 launch - likely was agreeing to a contract during the debacle, but certainly arrived afterwards.
  - neworbit 16y ago
    Actually he joined two days before v4 launched. I'm sure there was a healthy amount of "wtf have I gotten myself into" thereafter.

webwright 16y ago

This is how funded startups work. Google and Facebook both grew headcount ahead of revenue. It's basically a hack to use a pile of cash as a business accelerant. Management/founders are in the business of making bets. Sometimes these bets don't pay off-- that doesn't mean it's an "utter" failure in decision making... And these employees aren't "suffering". There are two possible outcomes when you go to work for a heavily funded company and this is one of them. I agree with you about Digg's not-so-bright future.

ceejayoz 16y ago
> Google and Facebook both grew headcount ahead of revenue. Ahead of revenue, sure, but they were increasing revenue, traffic, and moving towards profitability. Spending like mad and going nowhere is a different thing entirely.
- enjo 16y ago
  That only works in hindsight.
- webwright 16y ago
  The "going nowhere" part happens AFTER the spending like mad part. The all spent like mad in the hopes of going somewhere. Some of them end up being right, which can be a result of clever planning, a runaway market, or blind ass luck.

neworbit 16y ago

The first guy tossed was their VP of Engineering, right after Matt Williams came on board and V4 subsequently crashed and burned. But yes, layoffs will predominantly not be management.