That said, the best way to achieve the goals of the article at a studio like EA is make it an issue for the games’ primary audience, 13 year old boys.
The way that comments like these get downvoted shows why these developer union guys, whom I support, have so far to go.
Then why do people give them money?
It creates money, but contributes 0 or negative value for the actual gaming industry, unlike other companies like FromSoft that consistently hits the ball out of the park, pushing the envelope on new franchises and new gaming genres. THAT, is creating value.
stated preference vs revealed preference, or alternately, the people commenting about games on HN or reddit aren't reflective of the average EA customer.
Do people get that? Modern madden has worse oddities. Madden 08 wouldn't allow you to put more than 255 points on the scoreboard. Modern madden will completely break before you can even reach that point.
The animation/behavior systems have the exact same flaw where if you run a play for more than about 20 seconds characters just... shut off. They stop trying to run after the ball carrier even!
The knobs you can tweak on the simulation engine are the same on N64, Xbox 360, Xbox 1 X series X X'er hyper X, the damn Nintendo DS!
No wonder companies are so hostile to emulation. They would rather just resell the same game, sometimes with nicer textures.
the stakeholders/investors have priority here and they have sold the company to the highest bidder.
at this point anyone participating or showing support behind union is at risk of being profiled and black listed in the industry and not just EA.
its in their collective interest to setup in jurisdictions outside the US where labor laws make the latter illegal but certainly not in many parts of the world and jurisdiction arbitrage makes it a very real probability.
my advice to anyone working at EA or any unionized white collar jobs in this nidustry and relate to keep your heads down and don't post your thoughts in public.
Their points are cause for unions to organize across companies and industries (though solidarity strike action is illegal in the US because it's effective). But they take for granted that employers should have their way and that employee interests are best served by appeasing owners.
At EA a lot of the long term employees had significant stock holdings too.
In the context of software, the term "stakeholder" means anyone who will use the project being worked on.
In the context of business, "stakeholder" is an intentionally nebulous term designed to obfuscate who is supposed to be enriched by the actions of the company. Usually that term is a way of deceiving people into thinking the company's goal is to serve "the community", when in reality it's serving the shareholders at the expense of the well-being of the community.
Sometimes, it's a way of deceiving the shareholder for the benefit of the executives, e.g. some "DEI" bullshit that hurts the community, the shareholders, and most of the employees just to feed the HR department and the C-suite's insatiable lust for power.
EDIT - I'd like to add a comment about "shareholder" and "stakeholder" sounding so similar, but in practice meaning two mutually-incompatible things:
This is by design. You're not supposed to be conscientious of the difference in meaning.
You're supposed to hear "shareholder capitalism's kinder, gentler successor", not "corporate-owned feudalism".
It can also encourage workers to consider the needs of customers and suppliers, the ignoring of which will tend to eventually harm the company and its shareholders. I.e., it is not always a weasel word.
Again, you're thinking of an "agile" stakeholder- not a "stakeholder capitalism" stakeholder.
Why is this so difficult for you to grasp?
Because I personally haven't come across writings or speakings AFAICR in which "stakeholder" is used as a weasel word.
I will avoid the word now that I've had this conversation.
In business managerial side of operations, "stakeholder" is definitely a weasel word.
The word "stakeholder" in "stakeholder capitalism" as used by the World Economic Forum literally means "every single person on Earth". Unless you think Klaus Schwab also considers the possibility of life in the Andromeda Galaxy, it doesn't get anymore nebulous than that. The word "nebulous" describes something cloudy and ginormous- like a nebula.
I'm not trying to give you a hard time, but the rarity of the exception justifies the rule.
I'd note that the workers creating the wealth and doing all the work are among the vanguard of workers doing the best in the world, but the advice given sounds similar to advice that could have been given to slaves on a plantation, in case the masters be upset.
The workers do the work and create the wealth of these companies. The apparatus over them is just parasites sucking their labor off into profits.
Whatever the immediate strategy should be, organizing, educating and agitating is the order of the day, for anyone with any sort of backbone or self-worth (of course narcissistic notions to consider oneself a genius and everyone else is dead wood, as someone put it here, has been encouraged).
It also doesnt make senes that someone who creates all the value wouldnt just leave and capture all the value themselves. It's not like they're being forced to work for the parasite. Oh wait - maybe thats where the slavery comes in.
If they have a mortgage, kids in college, or just need routine health insurance coverage... they kind of are being forced to work?
Capturing the value yourself requires assuming a lot of risk, and most individuals can't access the kind of capital investment that a corporation can attract.
I think concern over company ownership is a core responsibility of a union.
> my advice to anyone working at EA or any unionized white collar jobs in this nidustry and relate to keep your heads down and don't post your thoughts in public.
That's one of the strengths of a union: established rules about what is an isn't acceptable, which include your right to speak out.
So yes maybe they're overreaching, but there's also very little for them to lose. Presumably they feel their labor power (unconstrained by the usual NLRB rules as this is not an NLRB-recognized bargaining unit) gives them some sway in the matter, but if not, they're not out anything.
Seems like a smart enough thing to try. If it doesn't work, they organize some more and try again later with better odds.
Making video games is a cool job. Making enterprise CRUD software isn't. Video game studios can therefore treat workers worse and get away with it because for at least some subset of the workforce, they'll put up with it.
EA makes games with numbers in their names. They do not take on a lot of risk, which means "anyone" could do it. So they have to work very, very hard. This is NOT a complicated idea.
Recent example: "Megabonk" was made by a solo indie dev in a few months. It has reportedly sold around 2 million copies at $10 in 1 month.
Your average Java CRUDster could probably do a lot of that work. Gamedev isn't the black art it used to be.
Once they realize how depressed their wages were in the games industry there’s no hope of getting them back.
My current company is a 4 day work week, fully remote and good pay. I feel I get more work done in a 32 hour week than I did at another company where I had hit ~90 hour weeks a few times. I'm not going back and fixing code I wrote while sleep deprived.
Also worked outside games in STEM, education and a couple startups. I wouldn't say they were particularly better.
If you're a literature expert, do you really want to do copy-editing for doordash when you could be writing interactive narratives?
If you're a UI designer, are wireframes for the latest AI chat app even 25% as exciting as designing the HUD for a new video game?
And then some skill sets are just not really transferable at all. Game design leans on skills that are transferable but 'game designer' doesn't really map to other fields at all, and it is a real specialization that some people have decades of time spent honing.
I personally don't understand people who work for blockchain, or as cashiers, waiters, customer support, etc.
I tried those jobs as there is no deep-rooted love of anything around those, just a job, and still a ton of people do it.
On the other hand, working on video games, despite being often underpaid, often full of crunching and sometimes monotonous, is something I do understand. It's literally as close as "follow your dreams" go but for programmers who are into games.
I mean, I could understand dreaming about working for (old) Blizzard, id, Westwood, Looking Glass, Valve, etc. but EA?! Really?
I agree as this is the main reason why I do not work in the video game industry.
I would love to work in it like many others but seeing friends get chewed up and spat out has dissuaded me over time.
It's an apocalyptic picture that's rather at odds with the unions claim that EA is doing fantastically.
EA's sports division prints money. Valve prints money. Call of Duty prints money. Valorant/League print money. Fortnite prints money. Roblox prints money. Their products have been around for 10-20+ years and will seemingly never die.
But that's not representative of the industry as a whole, and is not representative for the average game dev. See https://www.matthewball.co/all/stateofvideogaming2025 and others.
The other bit to notice about EA in particular is that its share price has been flat for the last 7 years, they've continuously failed to figure out how to change that, which is a problem. Selling and layoffs are a lever to get out of that hole, although it remains to be seen how great of a move it turns out to be.
See also: Microsoft
Maybe everyone uses the same engine in video games, but I doubt it.
Paying another to advocate for you can be measured by ROI.
The right words don’t appear on the resume. Software that the recruiter has never heard of and none of ones they have, job titles that don’t match those in other sectors and roles that seem to straddle more than one, different working practices, different challenges, different expectations, different measures of reputation and success. No recognised professional qualifications or certifications.
The reverse is also true, of course.
However whatever the cause, in practice even the BEST video game developer jobs out there are still low paid, full of crunches and low on autonomy. The union drive is imagining that the whole sector can be uplifted.
This will kill EA, period.
IIRC I read the other day there are more private equity firms in the US than McDonald's now. We produce nothing but weapons now as well as financial chicanery like private equity.
I would recommend listening to the How I Built This podcast. A number of interviews are with people whose companies were acquired by private equity. You can hear the founders' perspectives on private equity. It often doesn't match what you say. And I think in most cases, the brand is still around and doing well.
Are the employees claiming the company will be more profitable without them?
What a disingenuous thing to put forward! I'd have expected the employees to claim that letting them go will tank the value of the company.
If it's the workers that make EA successful, the investors would be stupid to let them go! Not only do they lose these great workers who make the company successful, also they potentially get new competition from them.
> As such, workers have launched a petition in a "fight to make video games better for workers and players - not billionaires".
Afaik the AAA games that EA makes are already plenty bad for the players...
> Effectively, Saudi Arabia's vast fossil fuel-derived state wealth is controlled by one person, which isn't good for human rights, or business either.
Finally something I can agree with in the whole article...
Basically everything is now owned by PE due to this effective unpatched vulnerability in our finance system.
In EA's case the allegation is that the LBO was just a way to circumvent the current administration from preventing the deal, since there are American interests involved in it.
IMO those are virtuous layoffs, sometimes you need to clear your company culture of troublemakers who are getting in the way of company strategy.
Having worked at a smaller firm with 15 SWEs that employed this strategy, they lost their 3 critics and proceeded to lose another 8, myself included, due to loss of confidence in leadership in the immediate (3-6 months) of the initial culling.
It’s a bold strategy, Cotton.
ryandrake•10h ago
Seems to be a common theme in 2025: Actually-healthy companies cosplaying as struggling companies, as an excuse to justify layoffs and other activities that transfer wealth and power from employees to management and shareholders. Like, does anyone think any of these BigTech (and MediumTech) companies who are all doing layoffs are really "struggling" and "vulnerable"? It's always just an unbelievable excuse.
glimshe•10h ago
Corporations are greedy and let go of many good people. But they also let go of many people who deserved to go. It's really hard to get rid of bad people, even in the US. But you wouldn't believe how many bad people were in big tech because of the COVID over hiring.
I've seen dozens, if not hundreds of people, who went to FAANG and added next to no value. As a manager in one of these companies, I had to deal with a mix of great people and many who were absolutely taking advantage of the company. I could write a book about it. Good for them, but it's not surprising that the party would end someday.
eli_gottlieb•10h ago
Could you explain why it's hard? I've never seen anyone run into any kind of difficulty letting go an at-will employee. The manager can do so at any time, for any reason or no reason at all.
mikestew•10h ago
nkozyra•10h ago
lesuorac•10h ago
You can definitely argue it's not fair to pay somebody extra for not doing a job but the alternative seems to be you keep paying them even more to keep not doing a job (and possibly doing negative work).
Rather than put somebody on a pip for x months just offer them x months of salary to quit. Same money, same work done.
zdragnar•10h ago
There's a legal distinction which impacts whether or not the employee is eligible for unemployment benefits, among other things.
lesuorac•6h ago
(although legally "firing" vs "layoff" is irrelevant, depending on the situation you can get benefits despite being what a layperson considered quitting [1]).
[1]: https://www.darwingray.com/from-desk-to-departure-when-movin...
onraglanroad•10h ago
The company could be sued by a non employee too. What difference does that make?
And if your company procedure requires a PIP, then you do that. Again, where's the difficulty?
Nothing you've said sounds difficult in the slightest. It's following procedure.
culll_kuprey•8h ago
It’s difficult to stop lying sometimes
wmeredith•10h ago
This has been my experience at two different companies in multiple cases with egregious underperformance. I suppose if an employee assaulted/harassed someone or was doing something else outright illegal like theft or embezzlement, they would be shown the door immediately. But if someone is half-assing their work and dragging the team down, everyone has to put up with it for months as they get second chances, micromanagement, and other special attention before they can actually be let go.
I think it's due to the litigiousness of the US culture. Yes, US companies can fire people at will, but they can also file lawsuits at will, which are costly (time+money) no matter the outcome.
ryandrake•10h ago
I was fired once, and there were no PIPs, no documentation, no warning, no nothing. Just "We aren't doing this work anymore and don't need you" and that was that.
Edman274•9h ago
Aurornis•9h ago
And if that employee can show that other people were allowed to wear green shirts without being fired, they can use that to support an illegal discrimination claim against the company.
The reason it takes effort and documentation to fire people is because companies want to have a uniform set of rules that are applied equally to all employees. They also want documentation to support the firing. Having a consistent process, applied equally and with supporting documentation discourages people from even trying to bring frivolous lawsuits.
Having additional process is also a check on managers. Some managers try to fire anyone they disagree with, dislike, or even to do things like open headcount so they can fill it with a nepotism hire. Putting process in place and requiring documentation discourages managers from firing people frivolously and adds another level of checks and balances to discourage gaming the system.
krainboltgreene•7h ago
That's not at all true.
makr17•2h ago
> If you get fired, and didn't see it coming, that's a failure in management. You should have _plenty_ of explicit signs of where things are heading, starting in 1:1 and culminating in a PIP.
anal_reactor•6h ago
The thing is, everyone is judged by how much inefficiency they remove. This implies that for anyone to be successful, there needs to be inefficiency in the first place. This means that everyone has incentive to create inefficiency, which can be removed at a later time.
Imagine you have ten workers. They say "if we do ten things then the system will be much cheaper to run, but further improvements will be minimal". The most efficient thing to do would be to tell them to work on all things ASAP in parallel, but this means that you'll deliver a lot in the first year, and then very little later on. This makes you look bad as a manager. A much better approach is to artificially delay the tasks and force them to be sequential, one task a year. This means that from outside perspective, your team seems to be consistently delivering added value through entire ten years.
Moreover, imagine that you value all ten employees, but one day the upper management tells every team to fire at least two workers. At that point you'll wish you had two extra guys sitting and doing nothing because you'd be able to fire them without putting your own deliverables in danger.
Not to mention that as a manager, your prestige is proportional to the number of people below you. This means that you have incentive to create bloated teams that sit and do nothing, because having five good and five bad employees looks better on paper than just having five good employees.
In most companies, information flow is extremely opaque. If you're particularly unlucky then your direct supervisor might know your performance is bad, but other than that, zero chance of anyone noticing. And even your direct supervisor might either be too busy, lack knowledge, or simply not give a fuck, because he understands the business value of artificial inefficiency.
zdragnar•10h ago
It was incredibly rough- a lot of people who weren't being told they needed to shape up or ship out were instead simply told they're being shipped out. The only upside is managers got better about supporting employees later on who weren't performing, including putting people on PIPs rather than letting them coast.
stronglikedan•10h ago
But what you cannot do in any circumstance is let people go "for any reason". There are laws against that at any size, and you are looking for a lawsuit if you give a reason.
It's best to just tell them their position has been eliminated due to restructuring (has to be provable if you're a big company), and give them no reason beyond that. If you don't give a reason, they have nothing to bring a lawsuit for.
In summary, reasons are not always required, but are always a liability.
earthnail•9h ago
Then there’s the perverse incentive that bigger teams usually equals a promotion. So if you’re the honest manager who manages a tight team and fires people, you won’t get promoted as often.
Top management knows this, of course. To sidestep these misaligned incentives a company-wide one-time layoff is really effective.
fifticon•10h ago
glimshe•10h ago
grogenaut•10h ago
Aurornis•9h ago
If someone hired a lot of people who had to be laid off later, they would get more supervision and review of future hires.
reactordev•10h ago
There’s no correlation. They hired expecting a certain type of growth. They fired because of AI. The narrative that they were getting rid of bad workers was their excuse, not the reason. Many great engineers got let go. Many project managers that had been with the company through ups and downs. One guy was let go after being poached from a FAANG after his 3rd day. So don’t say anyone deserved it.
ahtihn•9h ago
End of 0 interest rates is the more likely reason.
jayd16•9h ago
Nimitz14•5h ago
tharmas•9h ago
bko•10h ago
I've actually always liked working for companies in which the objective was straight forward. None of this "we're a family" stuff. You should be kind, and all the places I was at were kind. But layoffs are a reality and reducing headcount at times is part of that. You need a way to get rid of dead wood, otherwise you would be too afraid to grow and hire when you need to.
dragonwriter•10h ago
Layoffs are a signal to markets of struggles, and firms absolutely do, in practice, need to justify them (and their scale and focus) to avoid the risk of a self-fulfilling market perception that they signal a problems that they do not fully resolve. (If there is already a problem narrative, much of the justification is obvious, and the firm just needs to cover explaining how the layoffs address the problem.)
helge9210•10h ago
dragonwriter•8h ago
(And even if it does, the fact that the NPV of a project "turned negative" indicates that the value of the company dropped, and the layoffs are only a partial mitigation, which still hurts the perception of the company if the market hadn't discovered and priced in the drop before the company did and reacted with layoffs.)
ndriscoll•10h ago
cudgy•9h ago
Another factor is that retained employees that learn of companies layoff frequently become concerned about their own position and the treatment of the workers that were laid off, reducing employee morale. High performers may start looking for another job in order to avoid expected future layoffs.
Then there’s the impact on potential future employees, who will also know about the layoffs. These employees will be aware of recently layoffs and will expect more money from said company who will also have to train the new employee that replaced the one they laid off before.
Finally, you have the impact on potential customers or existing customers. Some customers have relationships with employees that are laid off, and this can be jarring. The customers may become concerned about the liability of the company or the management of the company, potentially moving all our part of their business to another firm.
All of these effects are not typically beneficial to the company or it’s shareholders.
dijit•10h ago
However the best work I ever did was done when I didn't have a pressure of being fired for offending the wrong person, and that I had the psychological safety to think longer term- since a short term "time-waste" often converted to better long term outcomes for everybody.
bpt3•9h ago
Aurornis•9h ago
I felt the same way until I worked at a company where almost nobody ever got fired or laid off. Anyone who was hired was basically guaranteed their job until the end of time because the leadership didn't like letting anyone go.
It only took a couple years until every time you needed to do something you'd run into some employee somewhere who wasn't doing their job. Even many people who seemed capable and appropriately skilled started slacking off when they realized there were never any consequences at all.
It was like a broken windows theory for the workplace. As people looked around and saw that others were doing almost no work, it started to spread. The people who liked actually shipping things started leaving, turning it into a snowball effect.
So there's a balance. Always working under threat of layoff and seeing good coworkers let go when you're already overburdened isn't good. Working in a company where there is no pressure at all to perform isn't good either.
dijit•9h ago
There's a sort of apathy osmosis that happens when you realise that you can't actually do anything because everyone else is sort of checked out... so the you, yourself, sort of check out too.
I get anxiety and "itchy" if I don't move towards my goals with any kind of swiftness.
n4r9•7h ago
gjsman-1000•9h ago
To the point I even had a boss say that part of this happens because nobody is there to spank adults when they need it (seriously), rather than intervene too strongly and have to find a replacement or hurt feelings or something. Or another contract worker, I got an apology from said boss... but he insisted she's better now than she used to be, the latest incident is mild compared to incidents before I arrived. As though that fixes it.
Much happier now at a company which cuts dead weight; and accepts we can't afford it.
JohnMakin•6h ago
nonethewiser•8h ago
dijit•8h ago
And as other comments point out, not having any pressure at all creates a self-fulfilling stall-cycle.
sarchertech•7h ago
pmarreck•10h ago
Even if they feel they ARE being productive, they should be allowed to let them go. The ultimate point of a job is not to get paid, it is to produce work that accomplishes a goal set by the employers. So if they change those goals for some reason, then the letting-go should be allowed.
I really wish there was some sort of UBI to disincentivize clinging to a near-useless (in terms of ultimate goals) job. Heck, just making unemployment not contingent on getting fired (another perverse incentive) would be an improvement.
platevoltage•7h ago
I know I post Star Trek analogies a lot, but if Chief O'brien got laid off from Deep Space Nine because of cost cutting, he would be fine. (actually, he'd probably be much better off). We don't live in this world. We live in a world where losing your job can kill you.
pmarreck•4h ago
jasonlotito•10h ago
That's not what layoffs are. In fact, your belief is not productive. Why are you waiting for layoffs to get rid of people who are not being productive? Why are you supporting people being unproductive?
> You need a way to get rid of dead wood, otherwise you would be too afraid to grow and hire when you need to.
That's not what's happening. Generally it's a result of leadership failing to do their job, misusing resources, and needing to compensate for that in the market.
Layoffs are signals that the leadership is not being productive. Full stop.
bastardoperator•8h ago
baggy_trough•8h ago
johanneskanybal•10h ago
jayd16•10h ago
Layoffs are not about individual performance
fn-mote•9h ago
So getting rid of 20% of the workforce and selecting “the bottom 20%” is not a layoff?
jayd16•9h ago
fvgvkujdfbllo•8h ago
If your manager or director is not getting laid off with you and you have a good relationship with them, then they might fight to keep you.
rafaelmn•9h ago
Spoom•8h ago
1. https://www.cnbc.com/2025/01/14/meta-targeting-lowest-perfor...
2. https://www.cnbc.com/2025/01/08/microsoft-confirms-performan...
dkxjxb•9h ago
We’re seeing the opposite and the wealth gap is increasing because the elites running our society see us as cattle, not countrymen.
The current point of our country is to increase GDP (which is a fancy way of saying make the rich richer, given the current wealth gap). It should be to enrich the lives of all its citizens.
bpt3•9h ago
What evidence is there to support this? Kids are expensive, and entry level jobs do not produce enough value to generate an income that can support several people.
> Anything else is morally wrong
Why?
beachtaxidriver•9h ago
In the post war boom it definitely used to produce enough value to support several people.
And we're far wealthier in aggregate now than before, it's just distributed badly now.
tock•9h ago
I guess one way is to increase the min wage a lot. But I am guessing employers will just pivot to hiring even less.
alephnerd•8h ago
Heck, unions themselves were heavily racialized back then.
On top of that, housing was segregated either overtly via race restrictions or covertly by overwhelmingly denying loans or sellers colluding to not sell to "that" family.
You'll hear plenty of these stories from older Black, Italian, Greek, Armenian, Chinese, and Hispanic Americans.
telotortium•6h ago
bpt3•6h ago
These delusions need to stop, because it makes it impossible to have meaningful conversations about the many actual issues that do exist. I would expect people here to be better informed, but that seems to be less and less true over the last couple years.
And yes, the wealth distribution is more uneven now than it was in those days, but not to the point that you are claiming.
wat10000•9h ago
daedrdev•8h ago
conception•9h ago
ahtihn•9h ago
In almost all layoff situations, employees get severance even in the US no?
At least for the big tech layoffs that seemed to be the case.
cm2012•9h ago
gmanley•9h ago
cm2012•5h ago
lovich•7h ago
dfxm12•9h ago
tharmas•9h ago
ghurtado•9h ago
Sounds like you've never worked here, but in the US that's always been the case.
US corporations do not need you shilling for their rights, they are doing very well in that department without your help, thank you very much.
mschuster91•9h ago
Alternatively, you can retrain the workers. Replacing workers has serious cost disadvantages: recruiting itself costs money (the HR staff dedicated to that, external headhunters, "employer branding" measures, job exhibition rents and swag), layoffs cost reputation, and new workers need to be trained in your company specific procedures from timetracking to expense refunds.
Unfortunately, these costs are all too often hidden deep in the balance sheets, which makes just dumping off entire departments while hiring up other departments appear much more financially attractive than it is in reality, all costs considered.
And finally, the ethical question remains: executives get paid sometimes a hundred million dollars a year because of the "responsibility" they hold. But in the end, they do not hold any responsibility, any accountability - financial penalties for shenanigans get covered by D&O insurance, and the first ones to get sacked for (or having to live with) bad executive decisions are the employees while the executive gets a departure agreement showering them with money.
IMHO, before a company can even fire a single worker for another reason than willful misconduct, the entire C-level executive has to go as well, with immediate stop of pay and benefits.
alephnerd•8h ago
Back in my PM days, I tried this with a couple old timer SWEs at my company. All except 2 blew it off and when pushed back they tried to play politics via the "old boys club" of buddies in Engineering Leadership (in PM vs Director or VP Eng, the Director or VP Eng always wins).
Retraining only works if the people who need to be retrained want to take the effort to retrain.
In an industry like tech where self-learning is so normalized and to a certain extent expected, the kind of person who needs to be forced to retrain just isn't the kind of person who actually wants to retrain.
Also, ime, age does not correlate to this. Being lazy is a personality defect orthogonal to being a gray beard or someone in your 20s.
> these costs are all too often hidden deep in the balance sheets, which makes just dumping off entire departments while hiring up other departments appear much more financially attractive than it is in reality, all costs considered.
Not really.
The process of hiring a new employee in aggregate costs at most around $10k on top of salary.
The cost of keeping a low effort employee is the salary along with the additional 30-40% paid in benefits, insurance, and taxes of retaining that employee.
As such, it's basically a wash at the individual level.
> executives get paid sometimes a hundred million dollars a year because of the "responsibility" they hold
Most don't though.
The person who ends up deciding to increase hiring is almost always an Engineering Manager or Director (depending on size of company).
VP and above only have visibility on top-line numbers, but the actual business case to hire is made by EMs or Directors.
mschuster91•7h ago
I think that's actually a two-way street. Companies expect self-learning and -improvement from employees, but where's that 20% time that used to be the norm in IT?
IMHO, the root cause rarely is someone being "set in stone" from the start - it's when the relationship between the individual and the company (or their direct manager) grows cold. In German we call that "Dienst nach Vorschrift". Loyalty is a two way street as well, and most companies aren't loyal to their employees - or they cease to be loyal and supportive towards their employees when the executive suits decide that their bonuses are under threat.
> The process of hiring a new employee in aggregate costs at most around $10k on top of salary.
Headhunter rates are ~20% (although I've heard of 50% for really senior staff) of the yearly base pay... so you're looking at $20k just in headhunter costs for your usual SWE, and that doesn't count the distributed costs for general hiring, "wasted" hours on interviews and their preparation that don't lead to a hire, or the cost to reacquire knowledge that hasn't been formally documented, or the time until the "new" guy has shown enough capability to be trusted to do stuff on their own (i.e. lost productivity).
> VP and above only have visibility on top-line numbers, but the actual business case to hire is made by EMs or Directors.
To hire an individual person, yes. But the decision to do entire departments worth of layoffs because the stonk is going on a dive after some exec's pipe dream didn't play out? That's C level. And these fuckers don't get to feel the consequences.
alephnerd•6h ago
That was never the norm outside of Google.
And to be brutally honest, if we are offering a TC of $200k-400k, we expect you to execute at that level of performance.
If you want to just be a code monkey, why shouldn't I find someone else?
> most companies aren't loyal to their employees - or they cease to be loyal and supportive towards their employees
There is no reason for employees to be loyal to a company nor companies to be loyal to employees.
Do you job or we can find someone else who can - most people overvalue their actual value to an organization.
Similarly, as an employee, if you detest an employer, find another job and give your 2 weeks - no more, no less.
But to land another job, you will need to self study constantly.
> Headhunter rates...
Most companies do not use headhunters.
> count the distributed costs for general hiring, "wasted" hours on interviews and their preparation that don't lead to a hire, or the cost to reacquire knowledge that hasn't been formally documented, or the time until the "new" guy has shown enough capability to be trusted to do stuff on their own
As a business, those legitimately are not as significant a cost as dealing with an underachieving employee on payroll when we are paying $200k-400k TC. Most product lines only generate high 7 figures to low 8 figures in revenue a year, so an underachieving but highly paid employee has a significant drag on the business of a specific product.
> To hire an individual person, yes
Even creating the AoP to hire N amount of employees is largely proposed by EMs and Directors, and then iterated or negotiated on with VPs and above
> To hire an individual person, yes. But the decision to do entire departments worth of layoffs because the stonk is going on a dive after some exec's pipe dream didn't play out? That's C level. And these fuckers don't get to feel the consequences.
If a business doesn't work out, there's no reason not to kill an entire product line.
Companies can and should take risks, but should also be open to kill product lines if they do not work out.
I have also axed execs on boards that I have been a part of if I have seen a persistent issue in performance that is directly attributable to their issues.
---------
Tbf, I think you are in Germany or Western Europe, so I cannot speak to how Engineering Management is done there in the software industry versus the US.
If I was paying German level TCs, I'd probably be more forgiving.
qwery•9h ago
And, yes, of course layoffs are something that need to be justified, just as with firing an individual employee, as you know -- the "employee is not being productive" is a justification.
baggy_trough•9h ago
gjsman-1000•9h ago
I also believe that the fact 1,000 employees can be laid off at once, and then flood the market with applications, is not something we should prevent. Rather, it's a sign we need to make more small independent companies. This is a concentration problem.
That would of course require that maybe we shouldn't have the Magnificent 7, but the Magnificent 100. Maybe instead of the Fortune 500, we need the Fortune 5000, with each one much smaller. Not happening anytime soon with current incentives, but I think it would be better for everyone. We shouldn't split Google into two, but into thirty.
It would be radical... but imagine if we set an aggressive, aggressive cap on employees and contractors. Like, limit 100, with a 1% corporate income tax on every additional person. Projects at scale - 50 companies cooperating; maybe with some sort of new corporation cooperation legal structure (call it the D-Corp, it manages a collection of C-Corps working together, and cannot collect profits for itself or own property, a nonprofit that manages for-profit companies who voluntarily join in a singular direction).
bigyabai•4h ago
Imposing a hard headcount limit would be the definition of pointless government overreach.
lawlessone•8h ago
Yeah but you live in a society, not a world of 8.1 billion sovereigns.
baggy_trough•8h ago
lawlessone•7h ago
This libertarian fantasy where you can do as you please, pretending your company is a person and your employees are furniture might be what you think is a "properly ordered society".
But guess what? , most of us don't, and it's a common view across both the left and the right :-). It's same reason most people left and right didn't really care when some guy that denied people their health insurance got denied himself.
baggy_trough•7h ago
lawlessone•2h ago
Like the case of Kirk or Ian Watkins, nobody should be killed but i won't lose sleep.
tavavex•8h ago
chrisco255•7h ago
The whole point of a business is to make a profit. If its not making a profit or growing, its at risk of dying, then layoffs hit 100%. The ship has to stay afloat.
There's no fundamental diff between a small business and large business here except scale.
9dev•7h ago
When the auto companies fucked up in Detroit, they wreaked havoc on an entire town. The tech giants raised rent in the valley so much, it essentially became uninhabitable to anyone but software engineers. There are more examples.
Businesses are just as much part of society as individuals, and they have to do their part of this relationship. IMHO this includes being considerate about layoffs, and taking care of your employees.
chrisco255•5h ago
We have unemployment insurance for laid off workers and most people at megacorps also get severence when they get let go. Older employees can find the same jobs at different companies there are almost no jobs that are exclusive to any one company and even where that is the case you can still find related jobs. There is no excuse.
Unemployment levels are near 4% right now, historically near all time lows.
Silicon Valley is expensive because of nimby zoning laws. We do not have that problem in Austin as Texas is pro-growth and allows for dense, high rise buildings and apartments to be built at will. As a result, our rent has gone down significantly in the last several years despite population growth. Fix your regulations and the supply problems in housing will fix themselves.
terminalshort•7h ago
lovich•7h ago
It’s as truthful a statement as saying the law treats all equally since both the rich and poor are banned from sleeping under bridges.
terminalshort•7h ago
Sparkle-san•6h ago
terminalshort•3h ago
gruez•9h ago
Isn't that most layoffs? Think of the layoffs post GFC. Did the subprime mortgage crisis suddenly make everyone incompetent, or are companies simply trying to trim budgets and need to hit some number? If it's actually due to poor performance, it would be through a PIP or similar.
immibis•8h ago
wholinator2•8h ago
It's about the immense asymmetry of power here. Yes, a person can leave just like a company can fire. But a single person quitting is nearly never a massive disruption to the business, but the business firing someone is nearly always a catastrophy for that person.
I don't need to justify quitting because I'm not harming you by doing so. Laying off hundreds of people absolutely requires careful and validated justification as your significantly harming nearly everyone impacted.
Of course these companies do pay well usually, but not all of them do, and not every individual has the privilege of cheap health and rent and a cheap family. Any single significant factor in a persons life can cause that "well paid" factor to mean a lot less, especially if it drags out to 6 months or more like it is known to do
brailsafe•8h ago
A subtle difference in terminology, but a bit difference in terms of outcome. In a layoff you'll likely have no issues getting severance if it was ever on the table to begin with, employment insurance, it's not a mark against you on a resume necessarily or socially.
parineum•8h ago
They always are.
High performers aren't getting let go, even if they are in department being cut, they will be moved.
fvgvkujdfbllo•8h ago
CTOs don’t care about productivity at IC level. I have seen plenty of high performers getting laid off with rest of their teams.
watwut•8h ago
They you have firings of whole sections.
Aaaand people with highest salaries are let go to save more movey. Some of them are actually high performers.
And then you have layoffs by managers who decides who stays based on printed code people presented ...
Retric•7h ago
Sometimes a company decides a specific market it’s worth it and every single programmer in the company is let go. Sometimes companies decide everything making over X$ in a position isn’t worth keeping etc.
BeetleB•7h ago
Wishful thinking. I just survived (yet another) round of layoffs. They are desperate to bring headcount down. If a whole team is being cut, everyone goes.
It's really a question of how flexible upper management is in the numbers they set out. If there's wiggle room - sure. They will try to find a place in an adjacent team. But if the whole department is getting slashed, there is no adjacent team.
Arainach•6h ago
astura•5h ago
Dude, no. This is just wishful thinking.
I've seen critical employees get laid off without any backup plan or even knowledge of what these employees do. When those critical tasks then don't get performed I've seen laid off employees be called and begged to come back because there's no one left who even knows how to perform those critical tasks.
Layoffs rarely make sense. I've been though multiple rounds of:
"Our administration costs are too high, layoff 20% of them."
"Oh wait, admin work is not getting done. We need more admin staff, hire"
"Our administration costs are too high, layoff 20% of them."
Ad nauseam.
terminalshort•7h ago
lovich•7h ago
Severance might outweigh that harm, but it depends on the amount, if any is given. Also I want to point out that the vast majority of companies give 0 severance. I’ve gotten it once in my life and I’m fairly certain it was “shut the fuck up” money as they had done some shady shenanigans to a bonus I was entitled to.
terminalshort•7h ago
Arainach•6h ago
lovich•6h ago
If you don’t believe that US regulations and law are set up in a way that pressures people to maintain employment at a company, then you have your head in the sand
terminalshort•4h ago
Unironically correct
ikrenji•9h ago
bpt3•6h ago
Jobs are a byproduct, not a hard requirement for a company to function, because the point of a company is to offer a service to customers, not to act as a jobs program for a town, state, country, or region.
screye•9h ago
In demanding industries, people spend 2/3rds of their waking hours around their coworkers. That's practically their whole life. It's cruel to encourage coldness in such an environment. You aren't family. But, you can be comrades. Your friendships can be forged through shared struggles, shared spaces and convenience.
It's a unique trait of tech companies to encourage cold but polite relations with your coworkers. Other industries have layoffs, politics and capitalistic competition. That doesn't stop coworkers from becoming friends.
The new generation is more isolated than ever before. The workplace is one of the few remaining mandatory social spaces. We should encourage the organic warmth that builds up between coworkers. It's cliche. But we're social animals.
AlexandrB•8h ago
jazzyjackson•8h ago
I don't know how you can assert this, among any other "stuck in a cubicle" office environment. Opportunities to be social are brief anyway. I'm on the side of 'give people time off enough to develop relationships outside of work'. 4 day work weeks would go a long way to helping people get the socializing we need.
mschuster91•8h ago
Today, all of that is gone. Average commute times tend to be measured in hours, so with regular "overtime" you're looking at 12 hours of being away from home for work purposes - eight hours of working , two hours of commute, one hour of lunch break, one hour of overtime. And on top of that, work is condensed ever more by everything being tracked, can't even take a piss any more as a call center worker before the supervisor gets a notification that you haven't picked up a call in 60 seconds.
nxor•7h ago
gadflyinyoureye•6h ago
dangus•6h ago
Comfortable suburbs do not have to be wasteful of land, purposefully difficult to walk around, and built so that you must own a car to get around. You can live in a single family home without consuming an excessive amount of land. There are many examples of single family homes suburbs and neighborhoods within city limits where land isn’t wasted like crazy and residents are confined to living life in their vehicles.
Americans literally spend thousands of dollars on vacations to the great cities of the world (and Disney World) where people gladly “live on top of each other” in order to enjoy the benefits of walkable urban fabric.
I will also point out that sprawl is horrendous for the natural environment. Dense cities are better for the planet and our long-term survival. Replacing fertile farmland and natural habitats with development has negative consequences. Your preferences to live in sprawl don’t outweigh humanity’s collective needs.
xp84•5h ago
What is the benefit of having this type of argument with people? It sounds like you're saying that you'd prefer to live in a fascist dictatorship that just bulldozes insufficiently-dense neighborhoods as it builds large, dense apartment blocks downtown to forcibly relocate the residents into, for the "good of humanity." Setting aside logistics of this (such as who's going to pay for that project, how many gestapo do you need to force people out of their homes) you first would need absolute dictatorial powers -- and I bet you will say you don't want that. You just want all of the non-city people to all change their minds at once and move to the city. Not really a proposal that's going to be very impactful, because that's never going to happen. For one thing, because most of the people who already live in the city hate the idea of building any new housing anywhere at any time. They hate low-income housing because it's wildly unfair to give it to a lucky few while everyone else struggles, and they hate market rate housing, because (eat the rich/hate those gentrifiers/etc). And everyone agrees they would hate for Transit System or the streets to become more congested.
It's better to focus, instead of on shame, on making the cities that already exist more attractive to people you think should want to live there. Work on crime, work on transit that makes people be glad to not be driving, rather than miserable that they can't afford to park a car there as they watch a full bus bypass their stop or wait 25 minutes for one to come. But also, cities would need to have a lot more high quality housing large enough for families, which again isn't something the suburbanites can fix for cities.
nxor•4h ago
nxor•5h ago
But how will we ever solve this when people don't seem to care?
screye•6h ago
Increasing density within the core allows people to switch to walking, cycling and transit. It reduces road traffic and those who want to commute from the burbs gain a faster commute. New housing isn't zero sum. Increasing housing in the core doesn't reduce housing in the outskirts.
The new Caltrains are a good model for transit as a valid mode for suburban commuting. A table, chair and wifi allows commuting to be a productive period to get work done. Boston's commuter rail & NYC's LIRR routes are also excellent, though they could use technological (wifi, charging, tables) upgrades. It doesn't make the commute shorter, but allows you to leave early and continue work on the train.
hombre_fatal•6h ago
It would be nice to have other options more like the dense cities in other parts of the world that Americans vacation to because they are far more pleasant to be in.
One single east asian style metropolis in the US would be nice.
amiga386•5h ago
Yes, it's good. The US seems to have either massively spaced out single family housing, or high density skyscrapers. That's not good.
Most other part of the world, and even older US cities before the urban sprawl started, have reasonable densities where you share a wall or a ceiling/floor with only one other family, or not that many. It's sociable, especially if the housing offers a third space (such as a shared green or a courtyard), and the density is such that amenities are no more than a few minutes walk.
https://en.wikipedia.org/wiki/Missing_middle_housing
underlipton•3h ago
nxor•4h ago
screye•6h ago
The housing theory of everything really is a theory of everything.
Lammy•7h ago
swiftcoder•6h ago
Lammy•6h ago
This is evident in the way people immediately screech “induced demand!!!!1” the second anyone talks about widening a road, like the point of building _anything_ isn't for people to use it. Nobody ever says induced demand when we build houses and people want to live in them lol
BolexNOLA•5h ago
Lammy•5h ago
BolexNOLA•5h ago
nxor•7h ago
I'm also wondering if a 4 day work week would only then make it easier to work two jobs, since there will be people who don't want to be 'idle' for three days, and others who will not use that time to be more social.
ToucanLoucan•8h ago
My generation has been encouraged by this reality since we entered the workforce to change jobs every few years, because companies are so stingy with raises. If you're planning to do that, you naturally keep distance with your coworkers; they're probably leaving before you are, and even if not, you are planning to.
Companies see no value in their existing workforce and it's honestly quite self-defeating and stupid. "Losing" any worker be it to their choice, or layoffs, or whatever it might be is a genuine LOSS to your team. It's however many months or years of experience not just with code, but with your code-base, your business, and your products going out the door. The fact that so many companies lose so many good people because they simply refuse to let an employee have a bit more money is honestly mind-bending; and once they're gone, they'll happily list their job online, often with a salary range even higher than the employee they just fired wanted.
Absolute corporate idiocy.
azemetre•7h ago
[1] https://en.wikipedia.org/wiki/Workplace_democracy
cperciva•7h ago
If you sleep 8 hours/night, this means you're spending 75 hours/week with your co-workers. That seems... a bit excessive?
swiftcoder•7h ago
screye•6h ago
gspencley•6h ago
You're straw-manning. The person you're replying to never once mentioned being cold, let alone encouraged it.
They simply expressed a preference for companies that don't try to pretend that their mission and purpose is something other than what it is.
I've worked in tech exclusively my entire 25+ year career. And I've worked for way more companies that try to put on a front of "we're a family" than the opposite.
As someone who has worked as an employee and owned businesses (often simultaneously), I'm on board with the parent. I don't want coldness in the workplace. But I also don't want employees or co-workers who don't respect that we're here to build something that we're offering for sale on the marketplace either, least of all in a highly competitive landscape where we're under constant threat of going out of business if we don't get productivity and efficiency right.
I want my businesses to be enjoyable places to work. But at the end of the day, if I'm paying money for someone who isn't pulling their weight then I am extremely resentful of anyone who tries to get in the way of me correcting the fact that they are effectively ripping me off and, by doing so, hurting every single one of their co-workers by hurting their employer.
Succeeding in business is hard. And while there are a lot of shady businesses out there, and a lot of big corps do things we take issue with, 99.9% of businesses are making the world a better place for you to live by producing everything from the concrete that paves your sidewalks, to the shippers that get food from farm to your table. The anti-business, anti-capitalism attitudes that are so prevalent in the west are truly disturbing.
By all means be pro-worker. But there really ought not be a conflict between business and employee since, at the end of the day, it is a mutually beneficial relationship. Business can't succeed without its employees, employees don't earn a cent if the business doesn't earn a profit. And lets not forget that what a business can afford is irrelevant. The business doesn't exist to employee people. It exists to produce the goods or services that it set out to in order to turn a profit. And there is nothing wrong with that. An employee that hates the profit motive is one I don't want working for me. You're hopefully profiting by being employed. Otherwise I don't know what you're doing with your life. So stop the hypocrisy and double standards. We're not a family, and we don't need to be cold to each other, but we're in this shit show together so let's act like reasonable, rational actors and do our fucking jobs so we can all take home money and feed our families and savings.
theragra•4h ago
Until you have no decent work life balance, benefits and compensation, speaking of friendship and family looks like an sarcastic insult.
But to be true, most of my current friends are through work. Some are from hobbies or university, but nobody is from school.
pfisch•8h ago
I don't know that it should be legal to buy a company and then pay for it by loading up the company with debt obligations. It seems like a form of value destruction in order to enrich a bunch of vultures.
Fundamentally it is basically saying maybe we could buy this company and then plunder it with some % chance that it will still stay afloat and keep generating profit after they gut the company to try to service a debt that should not be attached to the company at all and provided no value to anyone but the vultures.
terminalshort•7h ago
cptroot•6h ago
terminalshort•5h ago
Arainach•4h ago
terminalshort•4h ago
Arainach•3h ago
We've learned that businesses are lazy, cheap, and untrustworthy, and will lie, steal, cheat, and abuse everything unless you write strong rules and enforce them regularly. It's in society's best interests to incentivize running good businesses, not creating messes and declaring bankruptcy.
terminalshort•2h ago
pfisch•3h ago
terminalshort•3h ago
Ferret7446•6h ago
pfisch•3h ago
We just shouldn't let people buy profitable companies because they think they can make a return by destroying the business and then bleeding out a small profit once the company had been gutted. It isn't good for the economy, the employees, or really anyone except the plunderers.
alfalfasprout•8h ago
Companies need to be strategic with the messaging so as to not scare shareholders. Hence, they use "strategic refocusing on AI" or "operating leaner and faster" as buzzwords to characterize the layoffs.
In reality, in the last couple years companies are just trying to slash costs however they can because real sustained growth is highly uncertain.
simonjgreen•8h ago
If an employee is not being productive, that is a performance management issue and a good company will start by trying to fix it and if that doesn’t work will replace them. A bad company will retain bad performing people.
Layoffs are when you don’t have the work for them or you can’t afford something so are restructuring or similar. A good company will make layoffs and restructure if the economics require it. A bad company will keep going without doing that, ignoring their finances.
jandrese•8h ago
terminalshort•7h ago
jandrese•7h ago
terminalshort•7h ago
bcrosby95•6h ago
terminalshort•5h ago
Arainach•3h ago
Long-term oriented markets wouldn't be dumping so much money into high-frequency trading. Instead of reducing latency, a long-term focused market would increase the minimum latency to disable that kind of nonsense.
terminalshort•3h ago
Arainach•3h ago
chaosharmonic•8h ago
Layoffs, by definition, aren't about individual employees.
s1artibartfast•20m ago
jrnng•8h ago
Layoff is "this division or project is a dead end or not aligned with strategy and we are shutting it down, and don't have other spots to place everyone"
YeahThisIsMe•7h ago
And s company being able to fire anyone for any reason isn't even close to being comparable to an employee being "allowed" to leave the company for any reason.
What a wild comment.
jayd16•10h ago
That said, I think its completely justified for union bargaining to push back on the idea that its the emplpoyees that should burden that problem.
leetharris•9h ago
A company can be successful by most metrics, but if certain trends are not heading in the right direction, then faith in the stock drops, employee compensation goes down, future investments become dicey, etc.
This is the nature of public companies. This is why they don't want to be public anymore.
Eric_WVGG•9h ago
If the point of a corporation is profitability and good product, they had that.
But if the point is growth, then all that leaves is branching into other verticals, which leaves… movies and gambling?
loving that late stage capitalism!
screye•9h ago
Video game employees (programmers) are famously overworked, layoff prone and have little say in executive matters. I can't imagine how PE could make things worse.
The video game industry has been in an odd place for a while. The 2020s haven't produced many reliable AAA hits.
manoDev•9h ago
So what (public) companies do is over hire during growth, then lay off later to transfer the value created by these workers to shareholders. Rinse, repeat.
yunyu•9h ago
RobotCaleb•8h ago
yunyu•8h ago
RobotCaleb•7h ago
bcrosby95•6h ago
Once it stops being useful we can axe them.
terminalshort•7h ago
andrepd•6h ago
ActionHank•8h ago
gigatexal•7h ago
this idea is silly and unsustainable if you think about it just for 2 seconds.
JumpCrisscross•7h ago
This is a negotiation. You’re seeing one side message.
The union didn’t have a say in whether EA got acquired. But it does have the ability to make it a mess. Part of that ability is in public messaging.
So you’d expect to see , if the union is savvy, public grandstanding and threats paired with private negotiations for better terms for union members, whether that be immunity from lay-offs or some other wins.
echelon•6h ago
This isn't about PE juicing the company and doing layoffs.
This is about transplanting and nurturing a lucrative industry into a former Petro state.
This is sowing the seeds of a prosperous, post-oil world. It's an investment in the future as the world is changing.
This will look more like Lenovo and Thinkpad North Carolina than a PE shake down and gutting.
The jobs will not evaporate, but they will absolutely start cross-training engineers in the Middle East and building up new talent there.
JumpCrisscross•6h ago
If this is what the union fears, this is the moment to negotiate safeguards.
underlipton•3h ago
They're going private because it would allow them to mask their losses in a coming recession.