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I'm not going to bother engaging with you from the perspective of morality and ethics, since it seems unlikely that would resonate with you. Instead, I will poi
by santoshalper 4y ago
I'm not going to bother engaging with you from the perspective of morality and ethics, since it seems unlikely that would resonate with you. Instead, I will point out how wrong you are purely from a financial lens.
The goal of a CEO of any company is to generate long term shareholder value - eg. to make the company more valuable than they found it. Mark Zuckerberg has been the only CEO that Facebook has ever known, and obviously he has created a lot of shareholder value during his tenure. On the other hand, Facebook has also lost about half of its value in the last year or so. A dropping valuation is typically a lagging indicator of a major strategic blunder or disruption. The market is essentially saying that he has done a rather poor job for the past 2-3 years and the outlook of investors is diminished accordingly.
And yes, hiring a ton of people and then having to lay them off in a short time frame is a huge part of this. In a tech company, profits today are the result of long term execution of strategies and represent a return on capital investment. A designer or engineer hired today is not going to deliver much that will create revenue or profit this year. There is an old axiom in tech companies - if you want a little profit today, hire a sales exec. If you want a lot of profit in three years, hire an engineer.
Bulking up your technology team only to have to skinny it down later is a massive strategic and employee distraction and is absolutely a sign of mismanagement.