Mastodawn

Kevin P. Fleming Apr 24, 2023

In case you haven't heard, Red Hat is laying off people today, and I'm one of them. My 'career' as a Hatter lasted just over 15 months, much less time than I had planned or expected.

Many of you know me well, and know that I have extensive background in open source software, project management, open source business, and lots of related activities. If you're aware of any opportunities which may be of interest, feel free to send them my way via any channel you like.

Boosts much appreciated, of course, and thanks in advance!

Kevin P. Fleming

Also, in case anyone hasn't noticed, this is exactly on-point for what is happening all over the tech industry. Red Hat had a pretty good Q1, IBM had a decent Q1, IBM generated US$1.3B in *free cash flow* (discretionary cash after all operating and capital expenses), but the method they chose to realign their investments in products and technologies is by reducing the workforce (which was already barebones in many places).

Kevin P. Fleming Apr 24, 2023

In fact I'll take this a step further with some math:

Let's assume the published number of terminated employees is 800. Let's also assume that they get paid US$225,000 per year (very high average estimate), and that Red Hat's overhead per employee is 40%.

That's US$315,000 per year per person, times 800 people that's US$252M per year. IBM (of which RH is a significant chunk) produces that much free cash flow in *three weeks*.

There is no way that terminating all of these people is going to free up so much cash to invest in strategic projects that it can be worth the harm caused to 800 people and their families, and the knowledge loss in the organization, and the attrition that will follow as the remaining people get even more burned out.

☃️karolherbst☃️Apr 24, 2023

@kevin I hope you'll find something new real soon! The best of luck!

Bruce Elrick Apr 24, 2023

@kevin
Canonical is hiring.
https://grnh.se/dec311701us

Canonical

Bruce Elrick Apr 24, 2023

@kevin
Oh, full disclosure, I started work at Canonical 2022-02-28 and that link is a referral link.

arguil Apr 25, 2023

@virtuous_sloth @kevin other suggestion: https://system76.com/careers

Lorentz Apr 24, 2023

@kevin This culture of pleasing shareholders at all costs is so toxic that it is absolutely undermining the quality of engineered products. These MBAs have no idea what they are doing, except when it comes to shareholders. Just look at Boeing. Once one of the most solid engineering companies in the world, Boeing is now a laughing stock with their 787 fiasco. But as long as the gravy keeps flowing, it's all OK. We seriously need to rethink to whom our economy should cater.

Nicole Parsons Apr 25, 2023

@lorentz @kevin

Republican tax policy produces distorted economic incentives.

Layoffs that boost stock prices.

Layoffs that create bonuses for senior management.

Layoffs used for stock buybacks.

Layoffs used for political gain.

Layoffs for social engineering and malign influence campaigns.

Layoffs to erode the brain drain from China & Russia using "Tech Innovation is Dying in America" disinformation narratives.

Nicole Parsons Apr 25, 2023

@lorentz @kevin

For a long time, tech workers were indifferent, to a certain degree, to the economic, social, and political changes underway.

The owners and funders of technology companies are turning on their employees just as other industries have. Steel. Manufacturing. Retail. Cars. Banking.

Automating. Dropping wages. Squeezing. Moving overseas.

Nicole Parsons Apr 25, 2023

Tech workers are being laid off on the orders of private equity hedge funds like Chris Hohn.

Folks like Griffin, Schwab, Schwarzman, and Chris Hohn are following the directives of their billionaire investors.

Investors like the Saudi and UAE royals. Investors like #KochNetwork
Investors like Putin's oligarchs.

Why are these entities wanting to tank the engine of America's economy?

Why do they appear like they are orchestrating a recession?

Ruby S.Apr 25, 2023

@Npars01 @kevin Because workers are starting to organize and build power. The bosses are threatened and this is how they strike back.

Zeke Apr 25, 2023

@kevin cannibal capitalism requires ever-increasing profits. There is no profit incentive in aiding families

Gen X-Wing Apr 25, 2023

@kevin Short term shareholder value…

The more big layoffs I see, the more I hope a percentage starts up new, better, business to compete or innovate new things.

Also the poor people left behind will now end up working even harder (for zero personal gain) to make up for it. :(

lord pthenq1 Apr 25, 2023

I believe it is a strategy to lower costs in that market. There is a very peculiar synchronization crossing several companies that are profitable. It does not make sense. It is intentional.

DJ Tent Mode Apr 26, 2023

@kevin First, best of luck with your job search.

I just did a final project for the grad program I am in about layoffs. I concluded that there is no correlation between national layoffs and the S&P.

I also tried to detect any impact on a specific tech firm’s stock price up to three months after announcing mass layoffs. I concluded you can’t. It’s in the noise.

Large companies seem to use layoffs as a way to eliminate jobs instead of doing the hard work of performance managing their staff.