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> Instead, Gitlab explicitly blamed economy-wide conditions for these layoffs, and that is what I take issue with. The economy is doing well. And a macro-envir

by mbesto 4y ago

> Instead, Gitlab explicitly blamed economy-wide conditions for these layoffs, and that is what I take issue with. The economy is doing well. And a macro-environment doesn't refer to just the economy. Per wikipedia: "The macro-environment refers to all forces that are part of the larger society and affect the micro-environment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture."[0] Btw, if you really want to get pedantic, you specifically used macroeconomic and macro-environment interchangeably, which also have two specific but interrelated meanings. Gitlab used the word macroeconomic. Which sort of tells me all I need to know about how you and other people really understand Gitlab's message, which is exactly what I was referring to - the macro "view" is that people aren't spending like they used to on technology. Look at every publicly traded tech companies and you'll see that. Combine this with political factors (inflation at recent historic highs) and the macro "view" or whatever term you want to use seems dim compared to what it was in 2021/2022. > And frankly, my comment was not directed merely at Gitlab, but rather the slew of layoff notices we've seen that appear That was obvious, and so was mine. [0] - https://en.wikipedia.org/wiki/Market_environment https://en.wikipedia.org/wiki/Market_environment

jlmorton 4y ago
> the macro "view" is that people aren't spending like they used to on technology. Okay, so if I understand your point correctly, it's that Gitlab may have blamed the macroeconomic environment, but it should be fairly obvious to the casual reader that what is meant is that after the orgy of spending in 2021, tech spending is now broadly declining, and they can't ignore that. If sales are down, costs need to come down. So let's examine if that's true for Gitlab specifically, through their most recent quarterly data [1]: > Quarterly revenue of $113.0 million, up 69% year-over-year Gitlab's Q3 results showed higher revenue than any other quarter, and it wasn't close. It's many multiples higher than changes in wage indexes. Gitlab's 2022 revenue was nearly double their 2021 revenue, when technology spending was meant to be freely-flowing, and their second half revenue was higher than their first half. Gitlab is singing an entirely different tune to investors, and touting their rapid revenue growth. There is no sign of any slowdown in Gitlab's revenue. It's higher than it has ever been, by a lot. Admittedly, Gitlab has not released Q4 2022 results, so there's been a few months since this release, but things have been improving over the course of the past several months, not deteriorating. My complaint is not that Gitlab is conducting a layoff. If Gitlab over-hired, then fine. Course correct. If Gitlab wants to exit low-performers as part of a single broader cut, rather than manage them out, fine, do that. But don't blame the macroeconomic environment, especially when you're telling investors that the company is experiencing extremely high growth and improving margins, because it's disingenuous.

by mbesto 4y ago

jlmorton 4y ago

> the macro "view" is that people aren't spending like they used to on technology. Okay, so if I understand your point correctly, it's that Gitlab may have blamed the macroeconomic environment, but it should be fairly obvious to the casual reader that what is meant is that after the orgy of spending in 2021, tech spending is now broadly declining, and they can't ignore that. If sales are down, costs need to come down. So let's examine if that's true for Gitlab specifically, through their most recent quarterly data [1]: > Quarterly revenue of $113.0 million, up 69% year-over-year Gitlab's Q3 results showed higher revenue than any other quarter, and it wasn't close. It's many multiples higher than changes in wage indexes. Gitlab's 2022 revenue was nearly double their 2021 revenue, when technology spending was meant to be freely-flowing, and their second half revenue was higher than their first half. Gitlab is singing an entirely different tune to investors, and touting their rapid revenue growth. There is no sign of any slowdown in Gitlab's revenue. It's higher than it has ever been, by a lot. Admittedly, Gitlab has not released Q4 2022 results, so there's been a few months since this release, but things have been improving over the course of the past several months, not deteriorating. My complaint is not that Gitlab is conducting a layoff. If Gitlab over-hired, then fine. Course correct. If Gitlab wants to exit low-performers as part of a single broader cut, rather than manage them out, fine, do that. But don't blame the macroeconomic environment, especially when you're telling investors that the company is experiencing extremely high growth and improving margins, because it's disingenuous.