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And the corollary of this is how to do layoffs right (allegedly Toyota does this): 1. Cut out whatever else you can first, like executive bonuses and salaries.
by kqr 4y ago
And the corollary of this is how to do layoffs right (allegedly Toyota does this):
1. Cut out whatever else you can first, like executive bonuses and salaries.
2. Calculate the bare minimum staff you need, through good times and bad times.
3. Lay off the rest.
4. Tell those that got stuck behind that it was an extraordinary event and that they have tenure for life should they want it.
5. Stick to your promise.
- IMTDb 4y agoWouldn’t that lead to a roughly 75% staff reduction for some of these companies ? Just like what happened at Twitter. Would be fun to witness the aftermath on programmer salaries after this.
- funstuff007 4y agomight take a while to adjust given how generous and long lasting recent severance packages have been.
- SauciestGNU 4y agoI bet we'll see less impact on base pay and more impact on equity comp. Cautious engineers will get burned by unrealized comp (unvested shares) and insist on a distribution favoring base pay. I expect this will flatten engineer pay across the industry, because the big outliers in total comp were outliers because of stocks.
- emodendroket 4y agoI think there are simpler effects at work here, like less competition and optimistic calculations of the expected future value of grants.
- infamia 4y agoAssuming management who actually care about their people (a tiny minority), I've seen companies allow employees to vote whether the company should have layoffs or temporarily reduce everyone's salaries by various means (e.g. furloughs). This approach requires some things that are rare, like competent senior management who care about the well being of their people.