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2X is my understanding as well. Whatever you think an employee costs based on TC, double it to get the rough cost to the employer. Some other big employer costs
by CydeWeys 4y ago
2X is my understanding as well. Whatever you think an employee costs based on TC, double it to get the rough cost to the employer. Some other big employer costs related to employees you forgot include employment taxes, hardware/software expenses and licenses, and office space and related perks.
Also I suspect that $150k as the mean TC of those being let go is low. Spotify might be saving up to $500k all-in per employee let go.
- WastingMyTime89 4y ago> Also I suspect that $150k as the mean TC of those being let go is low. Probably not low. It's an enormous salary for a developer outside of the Valley and Spotify has plenty of employees which are not in the USA.
- phamilton4 4y agoTBH I think the average Sr. Developer is ~130k in the US. Of course this varies so much depending on the role and company.
- CydeWeys 4y agoSpotify pays significantly above the average, though. Not as high as the top-tier FANGs, but still high.
- bumby 4y agoThe average software developer (not sure that it's pertinent to constrain it to "senior" devs) is $120k in the US. In San Francisco, the median is $161k [1] [1] https://www.onetonline.org/link/summary/15-1252.00 https://www.onetonline.org/link/summary/15-1252.00
- CydeWeys 4y agoLevels.fyi supports me at least: https://www.levels.fyi/companies/spotify/salaries https://www.levels.fyi/companies/spotify/salaries
- phamilton4 4y agoI commented above, whether the salary is 150k, 250k, 500k... the impact doesn't change 0.1%, 0.2%, 0.33%. Not sure it really matters. Again I'm not defending lazy employees or saying employers are bad for doing this. I feel there is a hidden cost of layoffs from my own experience of being at a company doing round after round of layoffs.
- CydeWeys 4y agoAgreed it doesn't matter much in this case, but it is a common misconception that employees don't cost nearly as much to employers as they actually do, so I wanted to step in and correct that.
- pc86 4y agoI applied for an "entry-level" EM role with Spotify in 2021 and the base was 260-275, plus a generous bonus target and stock. TC would have been pushing $400k, for a fully remote USCAN-based role. I say that strictly as a calibration point - it's unlikely engineers are pushing half a million (maybe at the Staff+ level) but there's also not likely any engineers before $150k TC. I'd expect even mid-levels to be in the $200-225 ballpark but could be wrong. I think $150k median is probably on the lower side of correct, but not enough to meaningfully impact any of the numbers anyone is discussing here. It's close enough.
- lotsofpulp 4y agoThe stock price has more then halved since 2021, and based on their business model and history of profit, as an employee, I would not value the stock portion of compensation much. As far as I can tell, Apple/Google/Amazon will always provide the ceiling price for how much Spotify can charge its customers, hence capping revenue, and the 3 record labels will always extract just enough to keep Spotify operating. In a similar situation to Netflix, Spotify’s play would have to be to create their own content to lower their costs, but that is much easier said than done.
- sarchertech 4y agoThat’s what they attempted with podcasts.
- hello_moto 4y ago> Whatever you think an employee costs based on TC, double it to get the rough cost to the employer. Hardware/Software expenses, office spaces, health insurance are fixed cost. $150k employee vs 200k employee will have the same amount of fixed cost (assuming both are in the same function).