I had a big respect for companies like Uber, Lyft, Airbnb, Yelp etc and wished I had worked for them. But now looking at how these companies are laying off (except Airbnb), I'm so surprised. Are these companies being run so badly (or so fragile) that they cannot even withstand 3 months of bad business? Didn't know big corporations are as fragile as mom and pop shops relying on daily business. Am I not underatanding something fundamentally about these companies?
I think the point here is their business model is getting settled to be profitable. Just like apple started 44 yrs ago and had gone through several rough phases to reach to this point where it is today. Also these days investors are really panicked and need quick ROI.
Another problem is no one knows when it will go to normal state; so companies are preparing for the worst
OP, you forgot to add Tesla to this list. 😂 All over-leveraged companies living off of loop holes in regulations that didn't catch up with reality yet. All burn cash without any real path to profitability. They are examples of misallocation of financial resources, not sound businesses.
They are garbage and don't care about people only money
Just like how employees don't care about a company and are in only for the money. Food for thought!
They are public companies and are legally obligated to protect shareholders.
They use layoffs as a first resort, it’s all about pleasing investors
+1
Just like the employee depends on a paycheck, the company depends on revenue. Disrupt the chain and everything below is affected.
These companies run on investors' cash. Their business model is subsidizing people to use their app.
You are completely right. But guess what? People on Blind earning 6- figure TC don't understand this! 🤦 How screwed our tech community is...
Do you prefer to work for a hardware company and earn half as much?
3 months of bad business is not the same thing as 3 months of no business. If all the chickens in the world had a virus that made them inedible, Chick-Fil-A will come crashing down in 2 months.
At least some of the companies mentioned (and others not mentioned) are using covid-19 as an excuse to shed overhead.
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When you’re not making profits, and you’re a public company, you’re definitely fragile at such a time.
How is being public relevant?
Harder to raise money, more accountability, more pressure to balance your shit etc...