[HN Gopher] Spotify reducing employee base by about 6%
       ___________________________________________________________________
        
       Spotify reducing employee base by about 6%
        
       Author : filleokus
       Score  : 249 points
       Date   : 2023-01-23 12:27 UTC (10 hours ago)
        
 (HTM) web link (newsroom.spotify.com)
 (TXT) w3m dump (newsroom.spotify.com)
        
       | hugs_vs_toph wrote:
       | I hope they fired their UX guy, at least the interface would stop
       | its descent into hell (Cianide 1994)
        
         | dvngnt_ wrote:
         | I've never had an issue with Spotifys ux
        
           | yesimahuman wrote:
           | Yea it's the kind of thing you deliberately _don't_ want to
           | see changed. Never had an issue. Now, if my DW would stop
           | playing songs I've heard hundreds of times, that would be
           | appreciated!
        
           | bachmeier wrote:
           | Just a couple that hit me all the time:
           | 
           | - Click the play button. Nothing happens. Reload the page.
           | Hit the play button. Nothing happens. Reload the page a
           | second time. Hit the play button. With some delay, it finally
           | starts to play.
           | 
           | - My own playlists are buried underneath their insane
           | recommendations. Want to know which songs I'm most likely to
           | want to listen to? A good place to start would be the ones I
           | put on my playlist. I think their recommendation system was
           | designed by an intern that trained a deep learning model on 6
           | observations. Then the intern left, and nobody knew how to
           | fix it.
        
           | phailhaus wrote:
           | Have you ever tried to deal with playlists and queues? It's a
           | nightmare. Way too easy to accidentally play a song rather
           | than queue it up, and simple requests like "I'd like to queue
           | up this song in the middle of this album/playlist" are too
           | confusing. Run into issues constantly on road trips or at
           | parties.
        
           | gadders wrote:
           | The app is terrible. No consistent route for the "back"
           | button - constantly doesn't do what I expect. No clear way to
           | find a history of songs you'd played before. App
           | notifications for new podcast episodes never take you to that
           | episode. In patchy wifi/4g it takes forever to start or
           | search, rather than finding local results first.
        
           | criddell wrote:
           | I have a few problems. Spotify for me is about music and
           | that's it. Why can't I remove podcasts or audiobooks? They
           | are using too much of my screen to promote stuff they care
           | about and I don't.
           | 
           | Also, they really, really don't want you to turn off in-app
           | notifications. I've gone through the settings and turned off
           | every single switch I can find and now instead of getting a
           | notification for "band $x is playing in your city" I'm
           | getting a notification that I have notifications disabled and
           | so I'm missing out on all the stuff they want to promote.
           | Occasionally they decide to turn notifications back on and I
           | have to go through them again to find which ones they
           | flipped.
           | 
           | We pay for the family plan and as soon as my kids are off of
           | it, I'll probably switch to something else.
        
       | fulltimeloser wrote:
       | I hope we can keep companies like original Spotify around, where
       | I can find almost all the music I want to listen to. I wish
       | companies could keep a limited scope for their offerings and just
       | be really good at just that.
       | 
       | Spotify's focus on pod cast is kind of crap. It's like TV eras
       | cheap production value reality shows from late 1990ths all over.
       | 
       | I guess the capitalist mantra of perpetual growth is leading them
       | down another path.
       | 
       | Netflix used to be my go to site for film, now there are so many
       | to streaming services choose from I don't know where to start.
       | And they mainly focus on making series, which I'm not a big fan
       | of.
       | 
       | Looks like Spotify will follow the money and hollow out their
       | original service to be another junk site for vapid entertainment
       | and easy money.
        
         | werds wrote:
         | I would happily see Spotify die, they have exploited the
         | artists more effectively than any other organization since the
         | advent of streaming.
        
         | dmitriid wrote:
         | Both Spotify and Netflix depend on content that they don't, and
         | can't, own.
         | 
         | Netflix became a desert after WB, Disney and others decided
         | they wanted their own streaming services and took their content
         | with them. And since Disney basically owns everything, Netflix
         | now has nothing (except their own content).
         | 
         | Spotify is fully at the mercy of the three-four big companies
         | that own nearly all the music in the world:
         | https://en.wikipedia.org/wiki/Music_industry#Consolidation
         | 
         | And don't forget, you also need to complete with companies with
         | near-unlimited money and quick access to users like Apple,
         | Google, Amazon
        
       | switch007 wrote:
       | I got fed up with the poor UX and Scandinavian songs shoved in to
       | my Discover Weekly, so I cancelled a month ago. I haven't missed
       | it at all. I just use YouTube occasionally to listen to music.
        
       | layer8 wrote:
       | Gotta love these euphemisms, "reducing our employee base".
        
         | joegahona wrote:
         | Right? Surprised they didn't use "adjusting" instead of
         | "reducing" to make it even more opaque.
        
         | adingus wrote:
         | Another one I love is "right sizing". A phrase I have only ever
         | heard when companies lay off.
        
         | mkl95 wrote:
         | I can see it being used to imply that these are full time
         | Spotify employees, since they hire some contractors.
        
       | traceroute66 wrote:
       | Might I suggest "Spotify" be retrospectively added to the title ?
       | 
       | The present generic "An update on January 2023 Organisational
       | Changes" is very unhelpful. And indeed has already lead to at
       | least one duplicate post ...
        
         | filleokus wrote:
         | I changed it to the most relevant/interesting snippet from the
         | post and added "Spotify: " before it. Maybe too much
         | editorialising for HN? But it feels more informative to me.
        
       | mikebonnell wrote:
       | Spotify lays off 6% of the workforce.
        
         | 2OEH8eoCRo0 wrote:
         | Spotify fucked up and makes good by firing 6% of their people.
        
       | eigen-vector wrote:
       | This is probably the least tactical message amongst all the
       | companies that have laid off people. Ek's spent most of the time
       | rambling about efficiency and organizational changes to
       | leadership positions who'll be least affected by the layoffs.
       | 
       | Then comes the layoff news. It's almost as if he's rectifying
       | someone else's mistake and everyone getting laid off should be
       | thankful about it.
       | 
       | I wish CEOs read some of the emails that recruiting sends to
       | potential candidates before they set out to write a layoff post.
       | Completely tone deaf.
        
         | mahathu wrote:
         | >I wish CEOs read some of the emails that recruiting sends to
         | potential candidates before they set out to write a layoff
         | post. Completely tone deaf.
         | 
         | What kind of emails are you referring to? I haven't worked at a
         | tech company in a long while
        
         | defaultcompany wrote:
         | It did seem a bit tone deaf but five months baseline severance
         | is no joke.
        
           | [deleted]
        
         | wastedhours wrote:
         | The whole email was just so off - I know they build up to these
         | things, but am sure the announcement of the re-org could have
         | waited, and could have led with the most pressing news,
         | especially since it came in the middle of day and people had
         | already been let go by that point.
        
         | that_guy_iain wrote:
         | > I wish CEOs read some of the emails that recruiting sends to
         | potential candidates before they set out to write a layoff
         | post. Completely tone deaf.
         | 
         | I highly doubt CEOs write these posts.
        
         | mjburgess wrote:
         | It always helps to remember that people, generically, are
         | idiots who don't mean to say what, literally, they say; have no
         | idea how to say what they mean; and are otherwise just
         | struggling to create an impression of being in control and
         | knowing whats going on.
         | 
         | The first paragraph of this article reads this way to me: a
         | person flinging around cliches because they've no idea what
         | they're supposed to say, or how to say it.
         | 
         | This, indeed, may be more acute if the author is actually
         | distressed.
        
           | eigen-vector wrote:
           | I'd be more empathetic if this was a response in a live Q&A
           | like situation. For something that's meant to be PR speak,
           | this is abysmal.
        
         | chippiewill wrote:
         | Seriously.
         | 
         | If you're laying people off in an email it needs to be in the
         | first paragraph. Don't bury the lede.
        
         | ErikVandeWater wrote:
         | Yeah, starting of a note about layoffs talking "reiterating"
         | about the "most defensible business strategy" is extremely
         | tone-deaf.
        
       | esskay wrote:
       | So based on the rate of feature releases and bugfixes, this will
       | take the active development team down from 2 guys and a dog to 1
       | guy and a dog.
        
       | nayuki wrote:
       | This announcement is really beating around the bush and burying
       | the lede. The sentence "And for this reason, today, we are
       | reducing our employee base by about 6% across the company." comes
       | after about 10 paragraphs, and is 70% down the length of the
       | text.
       | 
       | The vague, ephemistic title "An Update on January 2023
       | Organizational Changes" doesn't help either. If I saw this
       | article on its own, I would probably miss its main point. But
       | because I saw this from HN, the title from HN - "Spotify reducing
       | employee base by about 6%" - told me what I needed to know.
        
       | ajaimk wrote:
       | Can a mod rename this: sounds like base salary is being reduced
       | by 6%
        
         | Kiro wrote:
         | Don't tell mods to change something if you're not sure what
         | you're talking about. Base here refers to people, 600 to be
         | exact, so it sounds like you're wrong.
        
           | nsteel wrote:
           | I think you've misunderstood the parent comment. They were
           | saying the current title could be misinterpreted to mean
           | "base salary is being reduced by 6%". I didn't think that,
           | but I can see where they are coming from.
        
             | Ekaros wrote:
             | That was my first skim on it as well. Which to me sounded
             | horrible considering inflation rates.
        
             | Kiro wrote:
             | Ah, you're probably right and my comment is stupid in that
             | context. I apologize.
        
       | mcdonje wrote:
       | I switched to Tidal and have been pleased so far. It's not
       | perfect, but it is focused on music, has a pretty good interface,
       | and pays artists better than Spotify does.
       | 
       | Reasons I was unhappy with Spotify:
       | 
       | - They went all in on podcasts at the expense of the music
       | interface. Too many little design choices trying to steer me into
       | podcasts when I'm there for music.
       | 
       | - Their podcast strategy relies on leveraging their market
       | position instead of adding value to the market.                 -
       | Trying to replicate Patreon            - Buying up a catalog of
       | exclusive podcasts
       | 
       | - Not going to respond to any comments about this point, but the
       | Joe Rogan thing left a sour taste in my mouth as well. In
       | addition to other aspects of that debacle, it was not a sound
       | business strategy.
       | 
       | The podcast app I use (PocketCasts) is generally pretty good, but
       | it has enough annoyances that I thought I might as well try to
       | switch and get all of my podcasts on Spotify. I couldn't get
       | special Patreon feeds because Spotify doesn't support them. The
       | reason is they want to roll out their own Patreon-like podcast
       | payments mechanism. But as of when I left, they had not rolled it
       | out across the board, and the podcasts I listen to were not
       | supported.
       | 
       | I'm not sure what their value proposition to podcast producers is
       | that would get them to switch from Patreon to Spotify, but I
       | imagine that has something to do with the trouble rolling that
       | out.
       | 
       | I don't recall the details, but I wasn't all that impressed with
       | the Spotify podcast functionality as a user either.
       | 
       | If they spent money on paying musicians more instead of
       | podcasters, made a podcast app worth using, and played nicely
       | with the podcasting sphere, I probably would've stayed with them.
       | 
       | They got big because they solved problems. Then they shifted
       | their strategy to leveraging their market position instead of
       | solving problems. A sure sign a company has lost its way.
        
       | ttrrooppeerr wrote:
       | They should lose Joe Rogan as well, I bailed out of the platform
       | when all that debacle started, don't want my money to fund these
       | things.
        
         | honeybadger1 wrote:
         | Just turn off your internet services if you don't want to fund
         | differing points of view.
        
           | paulcole wrote:
           | You can be OK funding differing points of view but not OK
           | funding a specific differing point of view.
        
             | popularrecluse wrote:
             | We just live in a world now where propagating false and
             | dangerous misinformation is merely offering a differing
             | point of view.
             | 
             | We were happy to let subject-matter experts help build the
             | modern world, but then turn on them as we seek out the
             | information that comports with the way we wish the world to
             | be. It's good to be skeptical, but a very significant
             | portion of the population has serious epistemic
             | deficiencies.
        
               | paulcole wrote:
               | I honestly don't have a clue what you're talking about
               | here.
               | 
               | My point was that you can think Elon Musk is a jackass
               | and not buy a Tesla even if you do think Jeff Bezos is a
               | jackass and still shop at Amazon.
        
               | popularrecluse wrote:
               | I responded to a comment upstream from yours on your
               | comment, because yours was the last I read and I was
               | continuing the train of thought. Sorry for the confusion.
        
               | honeybadger1 wrote:
               | I am not interested in engaging on identity politics.
        
               | Apocryphon wrote:
               | Just turn off your internet services if you don't want to
               | engage with differing points of view.
        
               | honeybadger1 wrote:
               | Luckily,I am fine with people having different points of
               | view, even when they are wrong. I have the right to see
               | them but not engage or to point and laugh and move on,
               | they don't reserve the right to force me to engage. This
               | person wishes to take the right away from people to even
               | know of the differing point of view, never allowing
               | dissent or support. Good effort though.
        
               | overgard wrote:
               | Ah "misinformation". (Which seems to be far-left speak
               | for "has a different opinion and I'd rather censor them
               | than argue with them".) Rogan is a comedian and has never
               | claimed any special expertise. If you're worried that
               | people listen to him over the legacy news media, well,
               | what does it say about them that somehow a comedian has
               | more credibility than they do?
        
               | popularrecluse wrote:
               | There will always be an acceptable range of discourse in
               | any society, and those that in their own ignorance and
               | confusion spread ideas that hurt the stability and well-
               | being of that society can expect pushback. Sorry if you
               | wanted to say whatever bullshit you want without a
               | challenge.
               | 
               | If you don't like it disconnect your internet, as you'd
               | say.
        
               | overgard wrote:
               | Never said it should go unchallenged. What a lovely
               | strawman you've built. Free speech is great, and if
               | someone says something incorrect, the solution is more
               | speech to counteract it. I think part of why Rogan is so
               | popular is because legacy media and woke activists have
               | such a bad reputation for trying to control the narrative
               | rather than engage in discourse, which is what he does. I
               | just said I don't have a problem with him stating his
               | opinion and I'm sick of people trying to censor a goddamn
               | comedian because they're jealous he built a large
               | audience.
               | 
               | I fail to see how Rogan threatens the stability of
               | society. I mean, it's hilarious other than that you're
               | actually serious about that. I'm far more afraid of
               | censorship than I am of Rogan talking to some goofball.
               | (BTW, you haven't even stated _why_ Rogan threatens the
               | stability of society or what he 's done).
               | 
               | I think I'll keep my internet connection friend.
        
               | Sohcahtoa82 wrote:
               | > If you're worried that people listen to him over the
               | legacy news media, well, what does it say about them that
               | somehow a comedian has more credibility than they do?
               | 
               | It says absolutely nothing about the "legacy news media".
               | It just means that many people are incredibly gullible.
               | 
               | Joe Rogan does not have more credibility, but some people
               | THINK he does, and that's the problem.
        
               | overgard wrote:
               | I think that's frankly a condescending world view. Who
               | made you the arbiter of what's true and what's not?
               | Listening to Joe Rogan doesn't mean you agree, it just
               | means he brings on interesting guests and trusts his
               | viewers to make up their own mind.
               | 
               | Who do you think people are more inclined to listen to,
               | someone that treats their audience with respect, or
               | someone that calls a broad swath of the population
               | idiots?
        
               | Sohcahtoa82 wrote:
               | > Who made you the arbiter of what's true and what's not?
               | 
               | Nobody. But I'm going to trust the opinions of people who
               | are experts in their field much more than some comedian.
               | 
               | > or someone that calls a broad swath of the population
               | idiots?
               | 
               | If you trust Joe more than the experts, then well, if the
               | shoe fits...
        
         | horns4lyfe wrote:
         | Just a quick glance at his podcast shows his last 5 guests:
         | famous comedian, ancient civilization researcher, wildlife
         | conservationist, UFC fighter. The horror! Please don't venture
         | out of whatever bubble you live in or you might find some
         | podcasts there you REALLY disagree with, and you clearly don't
         | do well with that. I mean honestly, the guys not even a
         | political commentator, just has opinions that are occasionally
         | outside the liberal current thing.
        
           | InCityDreams wrote:
           | My bubble (not gp) is that i just can't stand jr podcasts -
           | especially when interviewing people i make time for. Perhaps
           | the bubble isn't the content but the presenter?
        
           | leanstartupnoob wrote:
           | Yes, and of those last 5 guests: At least one is an infamous
           | sexual predator who forced his female staff into non-
           | consensual masturbation sessions.
           | 
           | The "researcher" mainly promote conspiracy theories about the
           | lost city of Atlantis.
        
           | Apocryphon wrote:
           | I have no bone to pick when it comes to Joe Rogan (love
           | _Newsradio_ ) but to continue the sibling post:
           | 
           | > wildlife conversationist
           | 
           | As host of the Extinct or Alive series, Galante has been seen
           | negatively by ecologists for being a "parachute
           | scientist".[46] Galante's website stated that he personally
           | captured the first video footage of a Zanzibar servaline
           | genet,[47] which is contradicted by Zanzibar researchers.[48]
           | Galante has also claimed that he personally rediscovered the
           | Fernandina Island tortoise [49] and the Rio Apaporis
           | Caiman,[50] both claims which have been contradicted by the
           | leaders of their respective expeditions,[46] the latter of
           | which published their findings and exploration prior to
           | Galante's trip to Colombia.[51] As of 2022, Galante has not
           | outlined his claimed discoveries in any scientific journals.
        
         | wreath wrote:
         | You can't stand, not even listening, but having opposed views
         | sharing tenancy in the same software as where your music is?
        
           | phatfish wrote:
           | Not just sharing the same "software". If the parent has a
           | paid Spotify subscription they are directly funding his
           | podcast.
           | 
           | Admittedly there are probably other podcasts they might not
           | like too, but Joe is certainly the biggest ass on platform
           | and got a mountain of subscriber money for the exclusive
           | deal.
        
             | default_png wrote:
             | Biggest Asset on the platform as well.. That exclusivity
             | deal definitely retains people to Spotify.
        
             | wreath wrote:
             | how exactly is he an ass? He brings in people he likes to
             | talk to. They spit out bullshit sometimes, interesting
             | stuff other times. He happens to record those conversations
             | and make shit ton of money out of them. I'm sure there are
             | far whorse podcasts and content online and on Spotify (a
             | lot of black metal is straight up racist shit yet its on
             | Spotify). Rogan gets shit for being the archetype of
             | everything the left hates.
        
       | whatever1 wrote:
       | So saving less than booting Joe Rohan ?
        
       | bobobob420 wrote:
       | Side note but every year Spotify's app gets worse and worse as
       | they remove features and try to 'simplify' the UI. Has anyone
       | been able to use the home screen where recommendations are
       | offered successfully? They want people to listen to podcasts but
       | can't even build a useable interface for browsing podcasts. All
       | the Spotify playlists have the same songs over and over. Their
       | proprietary shuffle algorithim is stupid because it doesn't
       | actually shuffle. Why can't they offer a true random and also
       | their shuffle algorithim? Music discovery is falling off as they
       | are forced to promote record labels point of view.
        
       | ben7799 wrote:
       | I've seen some good analyses lately showing spotify's business
       | model just can't survive in the long run with the way things are
       | going in the economy and the record companies are squeezing them
       | while simultaneously maneuvering to own them/buy them over time.
       | Apple/Amazon/Google are diversified giants that can seemingly get
       | away with running things without a need to make as much money as
       | Spotify/Tidal/Whatever which just do music/podcast streaming.
       | 
       | In the long run these services are all unsustainable and bad for
       | music.. I sometimes wonder if the young people going back to
       | vinyl is somewhat of a pushback on how lame the entire experience
       | of using these streaming services can be.
       | 
       | Podcasts can do well and have done well for a very long time in a
       | small business model with sponsors & product promotion.. throwing
       | massive money at them has always seemed an odd choice.
        
         | rabuse wrote:
         | The music industry really doesn't have a choice in this though.
         | If Spotify and Apple music die out, then it's back to sailing
         | the high seas again, and they get nothing. A Plex-like music
         | streaming app will be born, with an idiot-proof way of
         | downloading music from torrents, and they're fucked.
        
         | default_png wrote:
         | Thing is though, I have probably thrown 3K into Spotify, If I
         | cant get a "Flat rate subscription for All / Most of the music
         | out there" - > I will 100% just go back to downloading
         | discographies of the artists I like.
         | 
         | People saying "Support the artists" - I don't care about the
         | artists, I just want to listen to whatever takes my fancy, and
         | if they can't do that at my price point, they will end up
         | getting nothing from me..
        
           | maxwell wrote:
           | What is your price point?
           | 
           | Why would artists give anything to you?
        
             | default_png wrote:
             | Well, I am currently on like PS15 a month for 2x users on
             | Spotify.
             | 
             | >Why would artists give anything to you?
             | 
             | Literally not my concern.
        
               | maxwell wrote:
               | Spotify isn't profitable. Tidal isn't profitable.
               | Alphabet, Amazon, and Apple probably earn a profit on
               | their bundles, but if artists and labels aren't making
               | money on streaming, how long until they start pulling
               | their catalogs?
               | 
               | Will you stop listening to music if/when the unprofitable
               | music streaming services shut down? What happens if/when
               | Alphabet, Amazon, and Apple are barred from tying and
               | bundling their services?
               | 
               | It seems like artists and labels will simply revert to
               | pay per song/album and legal battles instead of wasting
               | resources on listeners who aren't willing to pay a
               | meaningful amount for music. At your price point, you'll
               | probably be able go back to buying a few hundred songs /
               | dozen or so albums a year.
        
               | ben7799 wrote:
               | It seems like most casual listeners just don't understand
               | this no matter how many articles there are about the
               | current model not being sustainable or how many time
               | their favorite artists complain about it.
               | 
               | There is not enough money in music for both the record
               | companies and spotify, et. al. to simultaneously rob the
               | artists. These streaming companies being the new middle
               | man are going to be the first to lose out. Especially if
               | the record companies wake up and start making their own
               | stores/services.
        
           | mrsuprawsm wrote:
           | how have you spent $3k on Spotify? the company is 17 years
           | old and if you were subscribing from day 1 for $10/month that
           | would only be 2k.
        
             | BlackjackCF wrote:
             | OP probably just ballpark estimated... but you can
             | certainly have spent $3k on Spotify since they now allow
             | you to buy audiobooks.
        
           | ben7799 wrote:
           | $3k is a lot of money to rent music. It's kind of odd to
           | realize people have spent that kind of money to rent music
           | and have nothing to show for it without continuing to spend
           | money.
           | 
           | $3k would still buy a very large physical collection. Most
           | people didn't have that kind of money into a physical
           | collection back in the day.
           | 
           | Vinyl prices are a joke, but CDs are often cheaper than a
           | digital download if bought new and they are easy to find for
           | $1-2 used.
           | 
           | It's kind of amazing you're OK having spent $3k renting music
           | but think the only option would be to go back to piracy if
           | streaming rental isn't available.
        
             | h4waii wrote:
             | "Nothing to show for it" is strange way to requiring
             | getting value from something.
             | 
             | 2 hours after I eat lunch, what do I have to "show for it"?
             | 
             | I'm perfectly fine with all the hours of music and the
             | accompanying enjoyment I've received from paying Spotify,
             | and that doesn't start to take in to consideration the
             | amount of new music I have easily discovered.
        
             | default_png wrote:
             | Honestly, I paid for the convenience.
             | 
             | I paid to bark orders at my Amazon Echo's / Google in the
             | car, and vend literally any song I wanted.
             | 
             | You could look back and be like >> Its amazing your ok with
             | spending 100k on food over your lifetime, you could have
             | eaten grass from the side of the road for free.
             | 
             | Piracy is easy, Spotify was easier.
             | 
             | Buying and ripping CD's is _Effort_
        
             | moogly wrote:
             | > $3k would still buy a very large physical collection
             | 
             | It's only a couple of hundred CDs. If you buy a lot of low-
             | priced ones, perhaps a few hundred.
        
             | renewiltord wrote:
             | The large collection is an asset to you, but to many of us,
             | it's a liability.
             | 
             | Almost everything I own I do because it is not cost-
             | efficient to rent (which is what I would prefer to do).
             | i.e. if cost-efficiency were even, I would rent things like
             | books, movies, or music.
        
         | MAGZine wrote:
         | you do realize that young people overwhelmingly stream, and do
         | not generally purchase vinyl, right?
         | 
         | I've heard this idea of streaming being bad for music bandied
         | about, but I don't believe it. streaming solved by piracy
         | problem by getting people to actually pay for music. People in
         | the industry like to complain about streaming, but I'm not
         | actually sure that 'the good ole days' are actually better, or
         | if people just have rose-coloured glasses about what the actual
         | state of things were.
         | 
         | You are right that streaming-only companies cannot afford to
         | take the same loss on streaming as Apple/Amazon/Google. And IMO
         | that's probably a good thing: we need to find the balance
         | between producers and consumers, not subsidize it with phone
         | sales.
        
           | ben7799 wrote:
           | Artist revenues on streaming have been dropping substantially
           | over the years, not increasing as the companies get larger.
           | There is no shortage of artists talking about what a joke the
           | payments have become.
           | 
           | If Spotify can't make money after cutting royalties 50% over
           | the last 3-4 years how can that possibly work?
           | 
           | Realistically Spotify is a whole bunch of people making a lot
           | of money as middlemen, but they can't seem to figure out how
           | to actually make money.
        
       | phamilton4 wrote:
       | I get needing to keep a company lean and that businesses operate
       | to make money... But most of these recent layoffs really make me
       | feel uneasy. Spotify is a little different because AFAIK they are
       | still operating at a negative net income, but still let's take a
       | look at this. They're going to let go 600 people.. that's maybe
       | an annual 90 million in savings (150k salary). The company's
       | revenue is about 9 billion with -39 million in net income. So
       | while this move might take them into the positive net income,
       | it's still only going to save them what? 0.1% of their revenue.
       | 
       | I realize it's much more complex than this, but I have been
       | looking at it this way for nearly every recent headline/company
       | and the savings are never really that significant. I'm not saying
       | that people who don't contribute or people who are bad employees
       | should be kept around forever because the company is healthy. I'm
       | just observing the financial "cost" of these laid off employees
       | compared against the companies revenue/net income.
       | 
       | Having been at a company that's doing layoffs and surviving
       | multiple rounds of layoffs myself, the impact (in my opinion) on
       | the remaining employees is quite significant. I have seen people
       | constantly frustrated with losing team members, managers leaving
       | once a few of their employees have left, good employees finding
       | other employment, etc. I'm not sure what I would do in these
       | companies positions, but it seems strange to just cut your
       | workforce when the trend has been going up financially for your
       | company. These types of layoffs just create negative, especially
       | with the current state of the world. Are any of the board members
       | taking a salary cut? Are any of the C level's taking a cut?
       | 
       | end rant, I need to get back to work so this doesn't happen to
       | me.
        
         | shmatt wrote:
         | It's very naive to think these huge orgs don't have dead weight
         | which is much bigger than 6%. If you start figuring some of
         | your moonshot ideas aren't hitting their OKR's, you have a few
         | options:
         | 
         | * Just let them keep doing whatever without delivering what
         | they claim they can
         | 
         | * Create new moonshots for them just because
         | 
         | * Move them to other products, but that doesn't mean they'll
         | create more value as an org with (now) double the people
         | 
         | So what ends up happening is re-orgs which actually mean
         | shutting down some failed ideas, moving the high performers to
         | other products, moving low performers out of those products,
         | then firing people who were left without a team.
         | 
         | Plus you need to take into the equation an assumption that
         | because of how things look right now, natural attrition will be
         | almost 0 in the next year or 2. If you're used to 5% of people
         | leaving on their own per year, assume its closer to 0% for 2023
         | and 2024
         | 
         | This is way beyond the cynical claim that this keeps the stock
         | up for another 2 months before it goes down again. There are
         | teams delivering nothing. There are teams delivering 90% of the
         | companies income. You can't just decide not to fire anyone,
         | move 100% of the employees to the 90% income team, and think
         | that income will grow just because more people work there now
         | 
         | Now, do these companies do it right? really finding the good
         | people and keeping them, and removing the weaker people, thats
         | up to debate
        
           | oxfordmale wrote:
           | It is also naive to think layoffs effectively target dead
           | weight. As more extensive layoffs are often decided by senior
           | management rather than team leaders, such releases have a
           | high signal-to-noise ratio.
           | 
           | Natural attrition will also not be close to 0 in the next
           | year or 2. Even if the markets stay stagnant, there will be
           | the usual musical chairs turnover (a Facebook employee
           | joining Google replacing a Google employee who joined
           | Facebook).
        
             | qikInNdOutReply wrote:
             | Layoffs are usually family within company graphs, with this
             | family then naming the "guys" necessary for the departments
             | to do there job. Means, you have dead weight forced to
             | identify the vital organs, allowing to fire the "medium"
             | weight. Yes, connections or talent are everything. No, its
             | not fair.
        
           | jupp0r wrote:
           | You also transform a good percentage of your high performers
           | into low performers (until they leave and high perform
           | somewhere else). I've seen it happen every time.
        
           | conor_f wrote:
           | > Create new moonshots for them just because
           | 
           | This seems disingenuous? They're "moonshots" as they've low
           | chance of succeeding. You could pick the most proficient
           | engineers and out-of-the-box thinkers and put them working on
           | a "moonshot" and they'd still fail. Giving that team a new
           | lofty goal seems like a great idea since they have experience
           | working on large problems and can likely prune good/bad
           | approaches much sooner than a fresh team.
        
           | eigen-vector wrote:
           | Presumably they already have performance processes that
           | eliminate "dead weight". Be assured that layoffs never really
           | mean that usual performance bases firings are paused. It's
           | pretty much always happening on top of existing performance
           | processes.
        
             | LanceH wrote:
             | Layoffs like this mean you can blame external forces like
             | the economy rather than saying, "our projects failed".
             | 
             | Some of these layoffs may have been coming anyway, but not
             | the corporate statement about them is different.
        
           | bananapub wrote:
           | >It's very naive to think these huge orgs don't have dead
           | weight which is much bigger than 6%. If you start figuring
           | some of your moonshot ideas aren't hitting their OKR's, you
           | have a few options:
           | 
           | there's been so many versions of this low quality comment on
           | every tech-company-mass-firing article. why is so little
           | thought put into it? if the company feels it can save on
           | salaries then:
           | 
           | 1. close down projects that aren't
           | effective/profitable/whatever
           | 
           | 1. fire people who aren't effective/profitable/whatever
           | 
           | mass broad spectrum layoffs like these are not that, they're
           | "oh, let's just randomly put holes in the org chart to save
           | X% of salary and see how it goes". would you suggest saving
           | data storage costs by deleting 6% of files? would you suggest
           | reducing compute by turning off 6% of jobs?
           | 
           | edit: and presumably a counter argument to the above is
           | "firing people in an optimal way is hard", to which I say lol
           | of course it is? work harder, then, before firing people.
           | "it's hard" isn't an excuse to do some random unrelated and
           | useless thing instead.
        
             | SpicyLemonZest wrote:
             | Why do you think that mass broad spectrum layoffs are
             | random holes? From what I've seen they follow exactly the
             | structure you're describing - there's a company-wide search
             | for projects that aren't pulling their weight, those
             | projects are shut down, and the employees whose roles no
             | longer make sense without the projects that will be shut
             | down get laid off.
             | 
             | > would you suggest saving data storage costs by deleting
             | 6% of files? would you suggest reducing compute by turning
             | off 6% of jobs?
             | 
             | I would, and I've seen mandates like this achieve good
             | results multiple times in my career. It's very rare to have
             | a team that _can 't_ make do with 94% of their data storage
             | footprint, but it's very common to have a team who would
             | find it temporarily inconvenient or would rather prioritize
             | other work over reducing it.
        
               | elijaht wrote:
               | > Why do you think that mass broad spectrum layoffs are
               | random holes? From what I've seen they follow exactly the
               | structure you're describing - there's a company-wide
               | search for projects that aren't pulling their weight,
               | those projects are shut down, and the employees whose
               | roles no longer make sense without the projects that will
               | be shut down get laid off.
               | 
               | I've been through 2 companies with layoffs in the past
               | year. What you describe is not how either worked. There
               | were some targeted shutdowns, but many teams also just
               | lost a member or two. In both cases my teams lost
               | important people which have a really bad impact on the
               | rest of the team.
        
               | bananapub wrote:
               | > Why do you think that mass broad spectrum layoffs are
               | random holes? From what I've seen they follow exactly the
               | structure you're describing - there's a company-wide
               | search for projects that aren't pulling their weight,
               | those projects are shut down, and the employees whose
               | roles no longer make sense without the projects that will
               | be shut down get laid off.
               | 
               | ? what are you talking about? The Google layoffs weren't
               | like that, nor the Meta ones nor the Amazon, and I'm
               | pretty sure the Spotify ones this article is about aren't
               | either, though the post is very short.
        
           | jobs_throwaway wrote:
           | > If you're used to 5% of people leaving on their own per
           | year, assume its closer to 0% for 2023 and 2024
           | 
           | Strongly doubt this claim. Especially for employees of a
           | sought-after firm like Spotify, there will always be people
           | jumping ship either to other big co's or to join
           | startups/start their own thing
        
           | cgio wrote:
           | As I mature in this industry I find it hard to agree, even
           | though I draw my experience from organisations outside the
           | FAANG if it's still a thing. Dead weight, is in my experience
           | no more than 2%, where I qualify dead weight as someone who
           | cannot add value or is actively detrimental. Most people can
           | add more value than they currently do. Many more people do
           | not match their capacity, but that is mostly out of bad
           | allocation of work etc. That bad allocation could be improved
           | with restructuring but crowded and rigid management
           | hierarchies are often the reason organisations don't grow at
           | the risk of diluting the self perceived value of upper-middle
           | management. I think this round of layoffs will see a
           | rebalance across sectors with banking etc. looking at huge
           | resourcing demands that are inelastic (e.g. regulation)
           | pulling in some of the talent. Similar to Covid layoffs
           | outside tech, my prediction is the inversion will start soon.
        
             | whstl wrote:
             | I agree. But IME the number of "dead weight" varies heavily
             | depending on some factors. I've definitely seen teams with
             | >10% dead weight, because of a combo of bad hiring process,
             | coupled with management not caring to check on them. Of
             | course that might be a biased view: in the cases I know,
             | the managers couldn't manage to get them back to speed, but
             | those were managers that had failed on the hiring/day-to-
             | day already.
        
           | tootie wrote:
           | I've seen this play out the consulting world which puts a
           | much finer point on the process. There, work is all project-
           | based. We build something for a customer and then maybe build
           | another thing or otherwise move on to something else. There's
           | basically no long-term value for our own business beyond
           | unquantifiable things like reputation. When the pipeline
           | dries up and there's not enough work to keep everyone
           | staffed, layoffs happen. And as much as we tried to be
           | meritocratic, being good at your job was less visible than
           | being ok at your job while working on a valuable project. It
           | was incumbent on managers to do emergency shuffling if they
           | wanted to stash top performers on good projects or vice-
           | versa, but it wasn't easy.
        
           | twawaaay wrote:
           | > It's very naive to think these huge orgs don't have dead
           | weight which is much bigger than 6%.
           | 
           | Pretty much my experience that when a company keeps growing,
           | at some point most corporate employees will not actually be
           | contributing anything.
           | 
           | Paradoxically, constraining teams with resources (but
           | allowing them to make their own decisions) makes teams more
           | efficient than if they had resources. Necessity is the mother
           | of invention -- when people are forced to deal with the
           | problem they will find a solution.
           | 
           | Corporations are worst possible places to be efficient -- not
           | only you have the resources (and most people get lazy when
           | they don't have to be inventive) but you are also typically
           | not even allowed to be inventive as companies typically work
           | towards centralising decisionmaking rather than allowing
           | teams to steer themselves.
           | 
           | Same goes for hiring. I worked with teams which hired
           | _anybody_ because the manager was forced to hire quickly or
           | loose budget. Or managers hired people just to enlarge their
           | estates because headcount was how they decided who is more
           | important.
           | 
           | So I completely understand _why_ companies are laying off
           | people. The only question is whether they are too optimistic
           | about being able to identify who to lay off, exactly.
           | 
           | In my experience it is pretty difficult even for managers to
           | understand who are best contributors in their teams. Get
           | removed 2-3 levels from a line manager (2-3 levels is where
           | the decisions would typically be made) and you can pretty
           | much dream about understanding who to lay off, individually.
        
           | lumost wrote:
           | After 1-3 years of tenure things start to look different imo.
           | Sure you get bad hires, and you also get people who become
           | lazy. But on any given project you tend to have some split of
           | people who work on the wrong things, don't work on anything,
           | or fail to deliver. People who consistently hit one of these
           | categories usually move on on their own - either because of
           | culture fit or comp growth. It's much easier and healthier to
           | focus on retaining your best people. As long as someone is
           | doing something, and isn't a net drag on the team - firing
           | seems to be more pain then the alternative in software.
           | 
           | Assuming that the industry returns to its standard 30-50%
           | attrition year on year.
        
             | ROTMetro wrote:
             | And those people become lazy because they put A LOT into
             | the company those first 1-3 years. And after they coast a
             | bit, they usual come back strong because 1. They are
             | intimately familiar with the corporate culture and the
             | internal software paradigm and 2. They have emotional
             | investment. It's like getting divorced in your early 40s
             | because things are not the same as a few years before, and
             | not getting to the good part of a relationship.
        
               | lumost wrote:
               | Absolutely! I also didn't quite see it when I moved
               | around earlier in my career - but many of the more
               | tenured folks simply know how to work efficiently in the
               | organization.
               | 
               | They tend not to pick up meaningless fights, or invest
               | time in work that the org doesn't care about, when their
               | are debates - they can usually settle them.
               | 
               | In hindsight I spent too much time early in my career on
               | work no one cared about. I spend less time on that stuff
               | now and have better wlb and feedback to boot.
        
         | karl11 wrote:
         | Revenue is irrelevant when looking at savings, you have to look
         | at net revenue or gross margin. Majority of Spotify's revenue
         | goes to record labels. If you are making -40mm / yr then a
         | $90mm swing is a huge deal.
         | 
         | Also, can't just look at salary - employees cost a lot more
         | than their salary. 10% employer tax, health care, other
         | ancillary benefits, IT equipment / space, etc. A $150k salary
         | probably costs the company $250k all in.
        
           | MuffinFlavored wrote:
           | What does laying off 600 people do to their net revenue/gross
           | margins?
        
           | oxfordmale wrote:
           | The cost picture is as follows:
           | 
           | money saved on staff reduction - money spent on layoff
           | packages - (temporary reduction in productivity, because of
           | lower staff morale)
           | 
           | Research shows there is no long-term benefit of layoffs other
           | than the short-term gain in cash flow. Layoffs are only
           | beneficial if they are needed for survival of the company
        
             | thehappypm wrote:
             | Lower productivity is highly questionable.
             | 
             | I've really only seen layoffs boost productivity. Suddenly
             | there is less overhead and fewer cooks-in-the-kitchen.
             | 
             | Morale hits are real, but tend to fade if people feel
             | confident that they've survived another day.
        
               | bastardoperator wrote:
               | You arrived at this conclusion anecdotally. You can't do
               | your best work with a constant cloud hanging over you,
               | doesn't matter who you are.
        
               | thehappypm wrote:
               | Morale hits are real, but tend to fade if people feel
               | confident that they've survived another day.
        
               | oxfordmale wrote:
               | Research shows layoffs result in a lowering of
               | productivity:
               | 
               | https://www.boardoptions.com/Learning%20from%20the%20past
               | %20...
               | 
               | https://pavestep.com/post/the-effects-of-downsizing-on-
               | remai...
               | 
               | https://knowledge.wharton.upenn.edu/article/how-layoffs-
               | cost...
               | 
               | https://garfinkleexecutivecoaching.com/articles/career-
               | advic...
               | 
               | https://www.forbes.com/sites/radhikaphilip/2020/07/23/the
               | -pa...
        
           | notyourwork wrote:
           | My vague recollection from an HR person was employees are
           | 1.5x or 2.5x (something like that) their salary as a cost to
           | the company. So $250k sounds about in the middle.
        
           | ROTMetro wrote:
           | Do Swedish companies pay a lot into health care? Can you
           | recover the cost of the IT equipment already paid for since
           | these are existing employees?
        
             | napoleongl wrote:
             | Health care is paid through taxes in Sweden and your access
             | to it is not dependent on your employment. You can have a
             | private insurance (and I assume a company like Spotify
             | does) but it's mostly for getting access to some private
             | doctors offices with shorter queues to some things. We
             | don't really have privately run hospitals as the US.
        
         | guelo wrote:
         | Hey those 90 million will help pay for Joe Rogan's 200 million.
        
           | nebula8804 wrote:
           | I thought the Joe Rogan deal was 100 million. Many people
           | have been stating he was seriously underpaid but I think he
           | was one of the first major deals so maybe there wasn't any
           | strong metric to gauge what he is worth.
           | 
           | Furthermore, they play multiple ads during his podcast
           | regardless of if you are a paying customer or not. This one
           | really grinds my gears. If they haven't made back their money
           | yet then I'd be shocked.
        
             | guelo wrote:
             | "two people familiar with the details of the transaction"
             | told NYT that it was at least $200 million for three and a
             | half years.
             | https://www.nytimes.com/2022/02/17/arts/music/spotify-joe-
             | ro...
        
               | nebula8804 wrote:
               | oh I guess I was mistaken. I constantly heard 100 million
               | but it was just a guess since the number was never
               | disclosed officially.
        
         | schnitzelstoat wrote:
         | Aren't most of the employees based in Europe? In that case it's
         | more like $100k or less.
        
           | estomagordo wrote:
           | Even in Sweden, where engineers earn way less than in the US,
           | it's going to be over $100k.
           | 
           | On any salary you would have to add 30% payroll tax, and then
           | maybe 15% or so in pension contributions.
        
         | bastardoperator wrote:
         | I don't think it is that complex. Who benefits from these mass
         | layoffs? Everyone at the top benefits, and everyone at the
         | bottom suffers.
         | 
         | You are spot on when it comes to impact of layoffs. If you want
         | to destroy productivity, firing people is a sure proof way of
         | doing that. To your point, I can't take any executive seriously
         | if they're not self reflecting on their own failure. Mass
         | layoffs should equal a new board in my opinion.
        
           | alldayeveryday wrote:
           | Who benefitted from the mass hirings? Stock holders, and also
           | workers. Did the workers complain when the job market (esp in
           | tech) was on fire and wages were increasing? No. Did they
           | blame the people at the top for their new job and wages? No.
           | 
           | But, now they want to blame leaders when there are mass
           | layoffs. I think the blame is misplaced. The root cause was
           | the stock market, and better yet blame the fed. The incentive
           | was to show growth at all costs, even at the expense of
           | burning cash. Leaders who did not optimize to growth were
           | fired in many cases. But the game changed when stimulus and
           | endless money printing stopped.
        
             | f6v wrote:
             | > Did they blame the people at the top for their new job
             | and wages?
             | 
             | Companies aren't very upfront about over-hiring.
        
               | alldayeveryday wrote:
               | It wasn't over-hiring given the environment at the time.
               | It was over hiring given current environment. It seems
               | clear that companies who took a more conservative
               | approach to hiring have come out better for it. Not all
               | companies could be so lucky. Some had activist investors
               | who aggressively pushed for growth or else pushed out
               | leaders. Messy world we live in.
        
               | iancmceachern wrote:
               | It was. It's naive to think that a boom economy will last
               | forever.
        
             | sausagefeet wrote:
             | I've been thinking about this question as well. Is it
             | better to have not given these people a job at all rather
             | than to have given a job and then fired? I don't know.
             | There are a lot of ways to look at it that all could be
             | right.
        
             | moonchrome wrote:
             | This - basically both decisions are driven by stock market
             | charades - growth at all costs when interest was low - cost
             | cutting when revenue drops.
        
             | dbingham wrote:
             | All of these companies laying people off are claiming that
             | they "over hired" or "over extended" themselves during the
             | pandemic and now they need to tighten their belts.
             | 
             | Who made the decision to hire more workers than the company
             | needed? Leadership. Who made the decisions to put the
             | company in a position where it would need to lay people
             | off? Leadership.
             | 
             | Who bears the consequences of those decisions? It's not the
             | people who made them.
             | 
             | It's not like the workers forced the companies to hire
             | them.
             | 
             | This is the problem I have with these layoffs. The
             | leadership who made the strategic decisions that put the
             | company in a position to need to lay people off should face
             | significant economic consequences before anyone else. But
             | that is not happening. That never happens.
             | 
             | And this also is where I push back on people who say that
             | investors are the ones taking the risk (and should therefor
             | reap the rewards of business). It's the workers who take a
             | greater risk - because they have less information, less
             | power, and less of a buffer if something goes wrong.
        
               | IMTDb wrote:
               | A working agreement is a contract between two parties.
               | 
               | Who made the decision to join a company that was seeing
               | sudden, unsustainable growth ? Workers. Who made the
               | decisions to place themselves in a position they maybe
               | aren't that needed? Workers.
               | 
               | Who enjoyed significant salary increase due to higher
               | demand for their skills, increasing the cost of their
               | labours while asking for increased benefits such as
               | flexibility, work from home, etc ? Again; workers
               | 
               | There are two sides to the coin here.
        
               | dbingham wrote:
               | No there are not. There's a massive information
               | imbalance. Most companies do not make enough information
               | public for workers to truly assess whether their growth
               | is sustainable or not. Public companies have to file a
               | certain amount of financial information, but they are
               | very good at playing games with that information to mask
               | their true financial health.
               | 
               | Workers have no choice when it comes to positions where
               | they might not be needed. That could be true of literally
               | _any_ job someone might take. And workers pretty much
               | never have the information to accurately assess for
               | themselves whether or not they think they are needed
               | until they are in the job. Every job a worker takes is a
               | risk in which they are asked to trust the company hiring
               | them not to turn around and immediately fire them.
               | 
               | > Who enjoyed significant salary increase due to higher
               | demand for their skills, increasing the cost of their
               | labours while asking for increased benefits such as
               | flexibility, work from home, etc ? Again; workers
               | 
               | Work from home and flexibility are mutually beneficial.
               | Knowledge workers perform better when they are able to do
               | their work in the way that best fits them. This is not
               | some benefit the company pays to hand out, it's the
               | company structuring itself in a way that most benefits
               | it.
               | 
               | As for salary, tech workers are still underpaid. Tech
               | work is not factory work. The companies revenues are
               | _entirely_ generated by the knowledge, skills, and work
               | of the workers. There 's no physical machine the company
               | is adding that allows the workers to do their work which
               | they couldn't themselves easily acquire. The very fact
               | that profit exists in tech companies tells you that
               | workers are being underpaid.
               | 
               | The only thing capital brings to the table in a tech
               | company is the ability to operate in the negative - to
               | scale head count (and thus to some degree productivity)
               | faster than revenue. That is not something any tech
               | worker needs, and most tech companies almost certainly
               | could have grown far more sustainably by growing along
               | with their revenue. That is something capital pushes,
               | hoping for outsized returns on the grown on its
               | investment.
               | 
               | So, again, who should be suffering the consequences when
               | the economy turns down? Keep in mind, paper losses of a
               | falling stock market are not true losses for investors.
               | As long as they hold through the fall - assuming the
               | company doesn't go under completely - they'll most likely
               | recover everything and more, but losing a job and
               | therefor income can be life changing for a worker.
        
               | CHY872 wrote:
               | I think there's probably a few things here that are worth
               | a comment:
               | 
               | - Information imbalance: from people I've talked to in
               | decently senior roles at even very large companies, it
               | might be surprising to learn that information can be poor
               | at every level, because generally the people who are
               | responsible for hiring at even fairly senior levels are
               | not directly also responsible for expenditure, especially
               | when macro-economic conditions are responsible for those
               | financial decision. Essentially, the person who is
               | responsible for setting the hiring targets to enable 20%
               | growth is likely not responsible for modelling what
               | happens if the cost of short term debt goes from 2% to
               | 10%. Probably this is most likely in the superscalers,
               | and it's likely hardest in the companies from 2-5k people
               | - with a tech org of about 1k, you're likely acutely
               | aware of the impact hiring strong people can have on your
               | product while lacking the numbers to approach the problem
               | analytically and with a sophisticated finance org.
               | Basically, the number of people who could reasonably be
               | expected to consider 'if we hire too many people, we'll
               | have to fire them' as a significant part of their brief
               | is smaller than you might think.
               | 
               | - 'There's no physical machine the company is adding that
               | allows the workers to do their job which they couldn't
               | themselves easily acquire'. Ignoring the focus on the
               | physical machine bit and focusing more on the creative
               | part of 'what does the company add, what do the people
               | add', your claim may be true in some parts of industry
               | and if you're in that side of industry I lament your
               | situation, but for large parts of industry it's
               | unequivocally false. There's a huge amount of value add
               | that the machinery of an engineering organisation adds.
               | In the more creative spaces, anyone who's operated in a
               | truly high performing culture will have observed that a
               | lot of the culture of building comes from the grouping of
               | people who've been very, very carefully hired for, who've
               | been carefully placed on team together, where memetic
               | techniques have been used to proliferate certain positive
               | behaviours, raising people up. We succeed as a team and
               | fail as a team. You can see this over and over in so many
               | testimonials - the stories from those who worked at Xerox
               | PARC, stories from the MIT LISP hackers, back 50 years,
               | all the way through hearing about the work the M1 team
               | was doing, seeing the companies that spawn hundreds of
               | startups from their alumni. And that's not to talk about
               | the companies who specifically use process and ritual to
               | ensure that engineers are consistently at the bar across
               | massive orgs, from Google's exacting bars for code
               | quality all the way to the consulting arms of Oracle,
               | CapGemini etc who can approach repeated problems and get
               | the most out of their engineers in a space where it's
               | arguably harder to hire talent. And this is totally
               | forgetting the huge non-SWE parts of orgs required to
               | enable success - sales, finance, marketing, etc etc.
               | 
               | - Tech workers are still underpaid - think there'll be a
               | rude awakening coming for you I guess. People across the
               | world get paid based on how much they can get in the
               | market (and if you're already at the company, the
               | switching cost). There's room for places that do it
               | differently, but not much room. If a large number of
               | qualified people join the labour pool, you can bet that
               | the practical market comp goes down.
               | 
               | - Paper losses are not true losses and you can just wait
               | for the price to go back up: Honestly, that's wrong on
               | like every level. Firstly, at the company level, there's
               | a very real risk for many of these companies that they go
               | bankrupt. Spotify has something like $2.8B in cash
               | equivalents, has revenue of $9B and expenditure of about
               | $9B. If their revenue dips by 20% due to e.g. a global
               | recession, that cash supply will last them about 18
               | months. Before they get there, they have to raise more
               | money. If raising via equity, they're going to be raising
               | at their new and lower valuation, so their investors take
               | a huge haircut. If they raise via debt, they'll be
               | getting charged a lot on interest (because their risk of
               | default is nontrivial). My brief but non-zero insider
               | knowledge of some of these debt deals make it very much
               | sound like a sellers market. A smaller company might
               | expect to see 15% interest demanded - if you need $150M,
               | you're in trouble. The staff who Spotify are dropping
               | today likely represent $300M over that same 18 month
               | period. You can bet that they'll be making this cut after
               | scraping the barrel everywhere else.
               | 
               | Now, for the actual investors - if you take a massive
               | paper loss, you're basically not getting that money back
               | on a reasonable timeframe.
               | https://danluu.com/norstad/risk-time/ is a good article
               | on this topic. The simple way to think about it is that
               | if in the good years you get 4% a year ROI across your
               | portfolio and then you take a 50% haircut once, it will
               | take you _18 years_ to make that difference back. The
               | people who invest in tech companies are in large part not
               | rich billionaires looking to pay for their next yacht -
               | they 're institutional investors, mutuals, pension funds
               | who are looking to maximise returns for their members.
        
               | dbingham wrote:
               | I appreciate your reasoned and detailed response. I
               | disagree with you and I'll take it point by point. In
               | some cases I think the disagreement is based more in a
               | [reasonable] misunderstanding of the point I'm actually
               | making, or where I didn't make my point as clearly as I
               | should have.
               | 
               | > Information imbalance
               | 
               | I have been that Director level manager responsible for
               | scaling and hiring with out the full scope of
               | information. When I said "people responsible" I mean, the
               | people with the information. And yes, it is a smaller
               | pool than many people might thing. But it is also a much
               | more highly compensated pool. Those are the people who
               | are ultimately responsible, and the people who should
               | face consequences and accountability. I would include the
               | investors (at the very least those who sit on the board
               | and take an active role in the running of the
               | organization) in that pool.
               | 
               | > There's no physical machine the company is adding
               | 
               | Here I fumbled my words. I should have said "capital" or
               | the "investors". Yes, absolutely, the organization itself
               | provides value. But that organization is almost entirely
               | composed of workers and could be run entirely by the
               | workers with out capital. Traditionally, in a factory
               | setting, the value capital has been said to provide - and
               | the reasoning for capital taking the returns - is the
               | physical machinery necessary for workers to do their
               | work. In a tech company, there is no such machinery.
               | 
               | The organization of a tech company is entirely composed
               | of, and run by, workers. In the vast majority of cases,
               | they don't need any physical machinery to do their work
               | except for consumer grade electronics they probably
               | already own or could trivially acquire. In the case of a
               | fully distributed company, this is even more true.
               | 
               | NOTE: I am including management in the workers here. I'm
               | using workers, as it is used in the context of worker
               | cooperatives or employee owned business, as a synonym of
               | employees. This is different from the traditional union
               | or labor organizing context which separates "line
               | workers" from "managers".
               | 
               | > Tech workers are still underpaid
               | 
               | In a traditional capitalist labor market, I think you can
               | reasonably make this argument. This views workers as
               | replaceable cogs and looks at how cheaply they could be
               | purchased on the market.
               | 
               | But I'm looking at it from the perspective of "what does
               | it actually take to produce the value the company
               | produces". And all it takes is the workers time, skills,
               | and knowledge. As I made in other points, capital brings
               | very little to the table. In that case, the workers
               | produce _the entire value of the company_. And from that
               | perspective, many workers at tech companies (which,
               | remember, I 'm using as a synonym for "employee" here)
               | are still compensated less than the value they create. In
               | some cases by significant amounts.
               | 
               | > Paper losses are not true losses and you can just wait
               | for the price to go back up
               | 
               | I'll grant you the wait for them to go back up point.
               | That was a bit glib and not well formed, but also
               | somewhat tangential to my larger point which I didn't
               | make very clearly: which is that while those losses might
               | hurt _on paper_ if they represent wealth that is on paper
               | then they have no immediate economic impact on the person
               | losing it. There 's no risk of hunger from a paper loss.
               | No risk of homelessness. No risk of exposure to the
               | elements.
               | 
               | And I will grant you, yes, there are some investors who
               | do expose themselves that much with their investments.
               | But they are a tiny outlier. For the vast majority of
               | investors, their investment is surplus far above and
               | beyond what they need to live a comfortable life to a
               | reasonable standard of living. In other words, they can
               | afford to lose it while suffering no unreasonable impact
               | to their quality of life. (Note, I would consider going
               | from "can afford a private yatch" to "have to live an
               | upper middle class life" a reasonable impact.")
               | 
               | To your point about institutional investors, the vast
               | majority of those assets (80 - 90%) are owned by the top
               | 10%. Who are, by definition, the middle upper class and
               | above. They are perfectly comfortable. And they can
               | afford a loss.
               | 
               | My larger point is about the risk actually being taken -
               | not in terms of paper wealth - but in terms of real
               | impact on quality of life. Investors aren't taking much.
               | Workers are.
        
               | iancmceachern wrote:
               | These details are not often not apparent to workers, and
               | many times the folks doing the hiring actively hide this
               | kind of thing from applicants. So it is not the workers
               | fault.
        
               | willcipriano wrote:
               | > people who say that investors are the ones taking the
               | risk
               | 
               | Those same people will tell you how the "free money era"
               | is over. Take a look a labors share of the economy, if
               | capitals share is so large due to capital risk, and
               | capital is easier to get, why didn't investors share of
               | the pie shrink?
        
           | lotsofpulp wrote:
           | > If you want to destroy productivity, firing people is a
           | sure proof way of doing that.
           | 
           | In Spotify's case, the business not making money, and hence
           | not having a stock price that keeps up with the market, is
           | also a way to destroy productivity. Higher productivity
           | people are probably not going to want to work at a charity.
        
             | bobkazamakis wrote:
             | >Higher productivity people are probably not going to want
             | to work at a charity.
             | 
             | Have you seen the things people create in minecraft
             | entirely for free?
        
               | lotsofpulp wrote:
               | Replace with "higher productivity people in an
               | organization like Spotify", which I doubt many people are
               | "passionate" about like they would be Minecraft.
        
             | qikInNdOutReply wrote:
             | Have you ever seen some of the heavy hitters, programing
             | game engines for open source? These guys do that, cause
             | they want to recover some sanity after programing crap for
             | companies all day. Sorry to say it, but great works will
             | never flourish in some monpolistic mega cooperation with
             | tribal infighting.
        
               | WeylandYutani wrote:
               | Spotify problem is that they are not a monopoly.
               | Competition is brutal in music streaming.
               | 
               | I have no idea if Apple or Google are more profitable?
               | Maybe someone can give an insight.
        
             | bastardoperator wrote:
             | So I guess you really dislike people in the OSS space who
             | are considered the most productive of us all and
             | essentially give all their work away for free, kind of like
             | a charity.
             | 
             | Spotify is a jukebox. You put money in and music plays.
             | It's not a new concept in the slightest capacity. If they
             | haven't figured out how to turn a profit now will they
             | ever?
        
               | mikhael28 wrote:
               | OSS is amazing. But needs to figure out how to make
               | money, otherwise it's not sustainable.
               | 
               | You ever hear the phrase 'theres no such thing as a free
               | lunch'?
        
               | floor2 wrote:
               | > If they haven't figured out how to turn a profit now
               | will they ever?
               | 
               | The corporate entity Spotify will never turn a major
               | profit, but that's by design.
               | 
               | Spotify made a deal with the devil to come to terms with
               | the record labels, and is now fully baked into a
               | "Hollywood Accounting" set of terms
               | (https://en.wikipedia.org/wiki/Hollywood_accounting)
               | which ensure the real money goes to the power players of
               | RIAA cartel.
               | 
               | It turns out, if you have good lawyers, you can structure
               | a set of entities such that neither the artists nor the
               | public shareholders of the streaming service get the
               | money, but rather, the opaque production company or
               | record label that sits in between it all.
        
               | lotsofpulp wrote:
               | No, it was badly phrased. Rephrase it to mean that the
               | proportion of people that are at Spotify who care a
               | decent amount about competitive compensation is probably
               | pretty high, and so they will be paying more attention to
               | the business's prospects when evaluating their options.
        
           | chitowneats wrote:
           | > If you want to destroy productivity, firing people is a
           | sure proof way of doing that.
           | 
           | Not as sure proof as paying people to do nothing. Or worse,
           | paying people who are actively working against the interests
           | of the company, intentionally or otherwise.
        
             | bastardoperator wrote:
             | If I pay someone to do nothing, who is at fault? The person
             | who shows up ready to work everyday or the person who made
             | a bad hiring decision and doesn't have the work for that
             | person? I'm not arguing against layoffs, I'm arguing that
             | the people making the hiring mistakes are not accountable.
             | If I as a CFO give the green light to increase the
             | company's workforce by 10% and two years later make a full
             | reverse, that CFO/Board should be let go too or since
             | they're all about taking "personal responsibility" should
             | step down.
             | 
             | Most companies employ a board of narcissists that only care
             | about themselves and their wallet and they get paid the
             | most so I'm not sure your analogy is hitting with me.
        
               | alldayeveryday wrote:
               | > Most companies employ a board of narcissists that only
               | care about themselves and their wallet
               | 
               | My read is a bit different, in that the board optimizes
               | to the stock price above all, which yes they benefit from
               | but that just means their personal interests are in
               | alignment with the interests of stock holders. I do not
               | blame the leaders so much as I blame the model. Leaders
               | who do not optimize the stock price are quickly expelled.
               | When the stock market was flush with covid stimulus cash,
               | and even before that whilst the market was hot, the name
               | of the game was showing growth. Companies were
               | incentivized to show growth even at the cost of burning
               | cash. Companies took on massive debt and in many cases,
               | either did stock buybacks and/or hired rapidly in an
               | effort to scale their organization for growth. When the
               | market fundamentals changed, and money started swinging
               | back towards safer bets (cash flow positive companies),
               | suddenly the game had changed and leaders needed to react
               | accordingly.
               | 
               | I guess in summary, hate the game not the player.
        
               | bastardoperator wrote:
               | I think you can dislike the behaviors being exhibited and
               | the game simultaneously. I hear you, it's the reality of
               | the situation we live in now, but it's not a good system
               | for the vast majority of people.
        
               | deltree7 wrote:
               | This is extremely naive take. No one can predict the
               | future.
               | 
               | If I hire a bunch of construction workers expecting to
               | sell 100 homes and suddenly the housing market collapse
               | and I need to only build 50 homes that I have contract
               | for, I need to fire some construction workers.
               | 
               | It is as simple as that.
               | 
               | No one can predict business cycles and that is the
               | fundamental driver of sales and input costs. If one can
               | successfully predict business cycles, they can be a
               | superior macro investor and make billions.
               | 
               | The entire HN crowd talks about as though they never made
               | any bad future decisions.
               | 
               | How many of you invested in stocks in 2021 that is down
               | 50%? Did you cut down on subscriptions? Why don't you
               | fire yourself for making stupid decisions?
        
               | bluedino wrote:
               | > I need to only build 50 homes that I have contract for,
               | I need to fire some construction workers.
               | 
               | Just like during a boom when a carpenter can charge 3x
               | his hourly rate, pick and choose his jobs, and anyone
               | with a pulse can walk onto a construction site and get a
               | paycheck.
        
               | [deleted]
        
               | buffington wrote:
               | Since people predict the future all the time, I'll assume
               | you mean that it's a lot more difficult to make
               | predictions in complicated systems like housing markets.
               | 
               | Assuming that's what you meant, let's consider the "I" in
               | "If I hire..."
               | 
               | If you're hiring someone, whether it's for your home
               | building business, or your tech company, you're not doing
               | it unaware of the market you're operating in.
               | 
               | No real estate developer is ignoring potential futures.
               | Those that do fail fast. That someone is hiring is
               | evidence of that someone is making predictions. They're
               | predicting at least one potential future where the person
               | they hire helps the company achieve their goals.
               | 
               | Speaking from experience, when I hire people, I am most
               | definitely thinking of the potential future that person
               | helps steer a company towards. I'm also very aware of
               | what will happen if I can't afford to hire someone.
               | Sometimes it's worth risking potential market effects
               | that'd make it so I can't afford to pay that person, but
               | usually it's not.
               | 
               | > No one can predict business cycles
               | 
               | Happens all the time, and people frequently make accurate
               | predictions.
               | 
               | > they can be a superior macro investor and make
               | billions.
               | 
               | Tell me, how did the current crop of billionaires become
               | billionaires? Certainly not by deciding that no one can
               | predict the future.
        
               | deltree7 wrote:
               | Have you built a Billion $$$ company? If so your comment
               | about your own hiring is worthless. Anyone can run a
               | small business. There are literally millions of SMBs
               | 
               | For large companies with public investors, there is a
               | risk of not scaling at the right time.
               | 
               | History is filled with failed companies that didn't scale
               | during 2012-2022 and were conservative.
               | 
               | History is also filled with idiots who claimed bubble and
               | predicting crash every year.
               | 
               | If I have limited ambition of staying a $10 Million
               | company, I can absolutely play it safe and hire very
               | conservatively.
               | 
               | Scaling is a Risk/Reward play and that's what the
               | investors pay the premium and expect rewards
        
             | [deleted]
        
           | ss48 wrote:
           | In this respect, I think that they're hoping that if they get
           | enough experienced and higher income people laid off, that
           | can compensate for the loss in productivity and the reduced
           | workload with whoever remains.
        
         | [deleted]
        
         | nytesky wrote:
         | The layoffs aren't about actually saving the cost of those
         | specific employees.
         | 
         | Instead, the threat of being laid off is being used as a stick
         | to bring the remaining employees in line -- productivity has
         | been lower the last few years, and leadership has no real way
         | to measure on an individual level or how to improve it, so
         | putting the pressure on employees is a tried and true tactics.
         | 
         | Further, they can make lower TC offers to future employees, and
         | give lower raises, pointing to the "need" to do so as
         | demonstrated by earlier layoffs.
         | 
         | So you lay off 6% but freeze the wages of the remaining 94%
         | (who are grateful to have a job rather than carping about wages
         | not tracking inflation) -- big savings.
        
           | MuffinFlavored wrote:
           | > productivity has been lower the last few years
           | 
           | Any statistics to back that up? I've read both narratives
           | (this one and the one that conflicts it) countless times over
           | the Internet the past few years. I have no idea what is true.
           | 
           | A lot of people defend work from home and say it makes people
           | more productive/work more overall. If that were the case, why
           | are some of the brightest companies like Google/Apple against
           | it?
        
             | nytesky wrote:
             | Not sure about stats, but it's definitely the impression of
             | companies leadership.
             | 
             | https://www.washingtonpost.com/business/2022/10/31/producti
             | v...
        
               | mattgreenrocks wrote:
               | It's hard to be surprised by this.
               | 
               | The pandemic may have acted like a reset on how work
               | could fit into one's life. There's no going back from a
               | perspective like that. I suspect that the idea of a
               | career ladder simply doesn't work as well on younger
               | generations as it may once have, for it may assume that
               | growth occurs (making room for people).
               | 
               | It also assumes that people trust institutions to take
               | care of them.
        
           | abeppu wrote:
           | A bunch of the recent layoffs aren't considering individual
           | performance as a primary factor. Whole teams get cut if that
           | project is no longer a priority. Roles get cut as part of a
           | reorg.
           | 
           | When this happens, this doesn't push employees to do anything
           | better; it sends the message that even if you're great at
           | your job, you may be cut because the company changed its mind
           | about what's worth pursuing.
        
           | disruptiveink wrote:
           | Pretty sure layoffs decrease productivity of the remaining
           | employees, unless you're a H-1B visa worker, no one "works
           | harder" after layoffs. Morale is low, resentment over "now I
           | have to do X as well" grows and productivity gets hit.
        
             | phamilton4 wrote:
             | This is my main point from personal experience. I worked at
             | a company that had almost yearly layoffs (caused by a late
             | transition to the online world and competition). I knew
             | whole teams that were reduced to a single person. Now that
             | person has to do support 24x7, new feature requests,
             | general information requests etc. Thank god I did not have
             | to deal with that. Also it's very difficult to hire when
             | people know the company is/has been doing layoffs.
        
               | anon84873628 wrote:
               | I always assumed the rationale was this:
               | 
               | That employee now doing extra work accepts it because
               | they are either scared of being laid off themselves, know
               | they can't find a better job elsewhere, have irrational
               | loyalty to the company, whatever. In any case the company
               | benefits by exploiting the person.
               | 
               | If instead the person leaves, then the process fails and
               | the issue rolls up the org hierarchy. Now the leadership
               | evaluates if this process was actually necessary anyway.
               | If not, let it die or let the shit roll downhill
               | elsewhere. If it was important, invest in the refactor
               | that everyone knew was probably necessary anyway.
               | 
               | For corporate leadership it's an easy way to either
               | squeeze more out of the peasants, or force a reevaluation
               | of priorities.
        
             | nsxwolf wrote:
             | I don't stay after a big round of layoffs for the same
             | reason I'd rather buy stocks when they look like they're
             | going up, not down.
             | 
             | The company is signaling that it is not doing well - why
             | shouldn't I leave for a company that is doing well?
             | 
             | The only way I'll stay is if you want me to be part of a
             | real plan to turn things around. And my involvement in that
             | has to be rewarded - not just at the successful end of that
             | process, but immediately.
        
               | myth_drannon wrote:
               | The thing is there is no important signal about a
               | specific company here, everyone is doing layoffs, the
               | same as in previous years that everyone was in a hiring
               | spree ignoring the actual company fundamentals. You can't
               | just leave a company which is laying off people because
               | everyone around you is also doing layoffs!
        
               | [deleted]
        
               | type-r wrote:
               | Nearly all major tech companies have announced layoffs in
               | the last few months. Which companies would you say are
               | "doing well" right now?
        
               | pm90 wrote:
               | I'm assuming that with the major tech companies all
               | laying off it becomes difficult to find another gig.
        
               | nsxwolf wrote:
               | I'm hoping I don't have to find that out any time soon,
               | but I prefer staying in the space of unknown enterprisey,
               | line-of-business backend orgs. FAANG/MAANG and adjacents
               | seem to be allergic to these roles and I never see their
               | resumes.
        
           | deltree7 wrote:
           | Bingo! Not many people realize some firings actually increase
           | productivity.
        
             | esel2k wrote:
             | Source? Because there is actually research beeing put into
             | these results, that it decreases productivity:
             | 
             | https://www.gsb.stanford.edu/insights/why-copycat-layoffs-
             | wo...
        
         | achiang wrote:
         | You need to use the fully loaded cost of an employee when
         | estimating opex savings, which includes health care costs,
         | retirement funding, etc.
         | 
         | Rule of thumb is that fully loaded cost for US employees is
         | approximately 2x yearly salary (although people who've actually
         | run a company can correct my potentially stale or incorrect
         | understanding).
        
           | CydeWeys wrote:
           | 2X is my understanding as well. Whatever you think an
           | employee costs based on TC, double it to get the rough cost
           | to the employer. Some other big employer costs related to
           | employees you forgot include employment taxes,
           | hardware/software expenses and licenses, and office space and
           | related perks.
           | 
           | Also I suspect that $150k as the mean TC of those being let
           | go is low. Spotify might be saving up to $500k all-in per
           | employee let go.
        
             | WastingMyTime89 wrote:
             | > Also I suspect that $150k as the mean TC of those being
             | let go is low.
             | 
             | Probably not low. It's an enormous salary for a developer
             | outside of the Valley and Spotify has plenty of employees
             | which are not in the USA.
        
               | phamilton4 wrote:
               | TBH I think the average Sr. Developer is ~130k in the US.
               | Of course this varies so much depending on the role and
               | company.
        
               | bumby wrote:
               | The average software developer (not sure that it's
               | pertinent to constrain it to "senior" devs) is $120k in
               | the US. In San Francisco, the median is $161k [1]
               | 
               | [1] https://www.onetonline.org/link/summary/15-1252.00
        
               | CydeWeys wrote:
               | Spotify pays significantly above the average, though. Not
               | as high as the top-tier FANGs, but still high.
        
               | pc86 wrote:
               | I applied for an "entry-level" EM role with Spotify in
               | 2021 and the base was 260-275, plus a generous bonus
               | target and stock. TC would have been pushing $400k, for a
               | fully remote USCAN-based role. I say that strictly as a
               | calibration point - it's unlikely engineers are pushing
               | half a million (maybe at the Staff+ level) but there's
               | also not likely any engineers before $150k TC. I'd expect
               | even mid-levels to be in the $200-225 ballpark but could
               | be wrong.
               | 
               | I think $150k median is probably on the lower side of
               | correct, but not enough to meaningfully impact any of the
               | numbers anyone is discussing here. It's close enough.
        
               | lotsofpulp wrote:
               | The stock price has more then halved since 2021, and
               | based on their business model and history of profit, as
               | an employee, I would not value the stock portion of
               | compensation much.
               | 
               | As far as I can tell, Apple/Google/Amazon will always
               | provide the ceiling price for how much Spotify can charge
               | its customers, hence capping revenue, and the 3 record
               | labels will always extract just enough to keep Spotify
               | operating.
               | 
               | In a similar situation to Netflix, Spotify's play would
               | have to be to create their own content to lower their
               | costs, but that is much easier said than done.
        
               | sarchertech wrote:
               | That's what they attempted with podcasts.
        
               | CydeWeys wrote:
               | Levels.fyi supports me at least:
               | https://www.levels.fyi/companies/spotify/salaries
        
               | phamilton4 wrote:
               | I commented above, whether the salary is 150k, 250k,
               | 500k... the impact doesn't change 0.1%, 0.2%, 0.33%. Not
               | sure it really matters. Again I'm not defending lazy
               | employees or saying employers are bad for doing this. I
               | feel there is a hidden cost of layoffs from my own
               | experience of being at a company doing round after round
               | of layoffs.
        
               | CydeWeys wrote:
               | Agreed it doesn't matter much in this case, but it is a
               | common misconception that employees don't cost nearly as
               | much to employers as they actually do, so I wanted to
               | step in and correct that.
        
             | hello_moto wrote:
             | > Whatever you think an employee costs based on TC, double
             | it to get the rough cost to the employer.
             | 
             | Hardware/Software expenses, office spaces, health insurance
             | are fixed cost.
             | 
             | $150k employee vs 200k employee will have the same amount
             | of fixed cost (assuming both are in the same function).
        
           | phamilton4 wrote:
           | Understand 2x, I was also looking across all the jobs at
           | spotify. There are some that go as low as 70k salary, a
           | majority seem to be 170k+. It was just for ease of
           | calculation. even if we take 500k that's still 0.033% of
           | revenue -_-
        
             | DeRock wrote:
             | You aren't using percentages correctly, I think you mean
             | 3.3% (and 1% in your original comment). Also, as pointed
             | elsewhere, revenue is not really relevant, majority of that
             | cash flows directly to artists/labels.
        
             | thehappypm wrote:
             | Again, revenue is not really all that relevant for this
             | kind of business. They're a low margin business because
             | they must pay huge bills to record labels. R&D doesn't cut
             | record label costs.
        
               | pc86 wrote:
               | I'm having trouble understanding why 'revenue is not
               | really all that relevant.'
               | 
               | If you're burning $40M a year, and you press a button to
               | save $90M a year, yes your label costs are the same but
               | how are you not now at +$50M a year?
        
               | thehappypm wrote:
               | Payroll is a cost, so it's more relevant to think about a
               | layoff in terms of its impact to profit (your example)
               | than revenue. Lots of companies sell at a tight margin,
               | so tiny cost savings as a percent of revenue can be a big
               | difference in profit.
        
         | voisin wrote:
         | I think companies are doing it to tilt the balance of power
         | back toward companies so they can force people back into the
         | office. WFH is going to shrink back to a minority of the
         | workforce.
        
         | baby-yoda wrote:
         | Broadly speaking, my opinion is alot of businesses are getting
         | the feeling that the next 6-12 months are going to be bad.
         | Layoffs, decreased consumer spending, rates continuing to rise,
         | banks tightening with lending, ad spending dries up. A vicious
         | cycle is starting to accelerate. Some companies are just going
         | to follow the trend, sure, but I just think there is probably
         | alot of internal data suggesting a slowdown and its too much to
         | ignore.
         | 
         | Spotify in particular, their revenue is Ads and subscriptions.
         | Consumers can very easily cut a streaming subscription if money
         | starts to dry up, same with companies purchasing ad space. They
         | do have lots of cash on hand so I don't think they are anywhere
         | near risk of going bankrupt. I'm curious to see their earnings
         | release next week and any changes in cash flow.
         | 
         | Another thing to consider is the opportunity cost of spending
         | 90 million, there might be other internal priorities in the
         | short term like acquisitions or paying down debt that supersede
         | any potential "brain drain". Not to downplay the layoffs of
         | course but the dynamic of competing priorities and larger
         | headwinds is just difficult to navigate.
        
         | [deleted]
        
         | leokennis wrote:
         | While I can't speak to the numbers, in general I think
         | companies that so casually abandon employees by immediately
         | announcing layoffs when times are tough cannot expect any
         | loyalty or flex from the people that remain in times the
         | economy picks up again.
         | 
         | Maybe they're fine with that, and it's all good. But if you
         | sack people on a whim don't be surprised if they walk out on
         | you on a whim if some better opportunity comes along.
        
         | matt_s wrote:
         | I think what we don't see talked about is the avoidance of
         | continuing to take on debt when interest rates are much higher
         | than in recent past. Companies can issue bonds to raise money
         | instead of loans but both are based on interest rates.
         | 
         | Companies pulling back on growth investments will help their
         | bottom line sooner. For tech companies their greatest cost is
         | employees which also is where they invest for more growth in
         | new products/services.
         | 
         | Cash flow is king when interest rates are high.
        
           | hef19898 wrote:
           | Cash flow is always king, as positive cash flow is what keeps
           | a company default alive like forever, or rather as long as
           | cash flow is positive.
           | 
           | And yes, I think high interest rates play role. Either
           | because credit lines become more expensive or because
           | investor and VC money is harder to come by.
        
         | iovrthoughtthis wrote:
         | this is partially about wage depression
        
         | overgard wrote:
         | Considering how generous the severance is (a good thing), I
         | wonder if it will even save them much money this year (granted,
         | there will probably be some resignations from people that
         | disagree with the direction).
        
           | mason55 wrote:
           | > _I wonder if it will even save them much money this year_
           | 
           | They also get to account for it differently. The severance
           | payments can be written off as a one-time charge, so from
           | that perspective they get to take the GAAP benefits this
           | year.
           | 
           | Even though the cash flow is ~the same between letting people
           | work for a year and then laying them off with no severance,
           | doing it this way makes the business immediately look better.
        
           | phamilton4 wrote:
           | Edit: I'm wrong looks like they can write it off.
        
         | eloisant wrote:
         | The saving isn't that obvious because they might need to hire
         | contracters (sometimes even the same worker) to make up for the
         | lost workforce.
         | 
         | Also severance packages are expensive! In addition to all the
         | costs associated with a big layoff plan like this one.
        
           | marginalia_nu wrote:
           | Probably more about sending a message to anxious tech-
           | shareholders than anything else. 2023 is not the right year
           | for a tech investment to appear to hemorrhage money.
        
         | ren_engineer wrote:
         | if you expect a multi year recession it makes sense, especially
         | when you aren't profitable and interest rates are rising
        
         | apercu wrote:
         | If the end game is suppress salaries and increase control (by
         | forcing people back to offices), maybe the morale hit is worth
         | it over a couple years.
        
         | isitmadeofglass wrote:
         | [dead]
        
         | michaelbuckbee wrote:
         | My presumption is that it's both signaling to wall st to keep
         | the stock price up (and for the C levels to keep their jobs)
         | and also that companies did over hire in all sorts of weird
         | ways in the last couple of years.
        
       | woeirua wrote:
       | This is an unpopular opinion, but history from the DotCom crash
       | tells us that the layoffs are just getting started. Turns out you
       | can't run at a loss forever, and when the going gets rough the
       | fastest way to increase profitability is to cut costs.
       | 
       | Say what you will about Elon and Twitter, but he definitely
       | proved that the majority of the engineers at Twitter were adding
       | no value to the company. That is probably true at _all_ of the
       | large tech companies.
       | 
       | If you work at a tech company make sure you have at least 6
       | months of liquid savings set aside for a rainy day.
        
         | mjr00 wrote:
         | I don't think "the majority of the engineers at Twitter were
         | adding no value to the company" is a fair statement: one
         | because it's not clear that it was the majority, two because it
         | wasn't necessarily "no value" as much as "not as much value as
         | other product areas", and three because it wasn't just
         | engineering, it's product managers, sales, marketing, community
         | managers, everyone.
         | 
         | That being said I _do_ think Elon 's bold moves at Twitter sent
         | a shock through the industry. It made executives reevaluate
         | their company's business strategies and if the non-core-
         | business functions actually even made sense. Why is Google
         | making a cloud gaming service, much less funding a video game
         | studio? Why is Twitter employing people to debunk climate
         | change? Why is Amazon employing a team of people to write jokes
         | for their unprofitable smart home device?
         | 
         | Corporate bloat has been common forever, but it's been
         | especially common over the past decade with zero interest
         | rates. There's been basically zero focus on expenses and 100%
         | focus on growth at all costs.
         | 
         | Scary part is we might just be getting started. Maybe we _will_
         | see 50% cuts at Google /Meta/Amazon by the end of the year.
        
           | woeirua wrote:
           | I think Elon was stupid in cutting the account managers and
           | salespeople, but clearly there has been no noticeable
           | difference in the service now that all those engineers are
           | gone. Hence the comment about not adding value.
           | 
           | And if you read the whistleblower report you might seriously
           | question what they were doing before Elon reset everything.
           | 
           | I wouldn't be surprised if 2023 marks the start of another
           | tech recession. The era of outrageous tech salaries is over.
        
         | rurp wrote:
         | > Say what you will about Elon and Twitter, but he definitely
         | proved that the majority of the engineers at Twitter were
         | adding no value to the company.
         | 
         | Unless you care about revenue, which has been crushed due to
         | Elon's actions. The company is less healthy than a year ago and
         | still coasting on reserves of previous work and network
         | effects. Musk is spending billions, and refusing to pay valid
         | debts, just to keep the lights on. He admits that the company
         | might end up bankrupt.
         | 
         | It blows my mind that anyone could be touting this as a well
         | run business that others should emulate.
        
           | woeirua wrote:
           | I never said it was a well run business. You're also going to
           | have to untangle Elons antics, laying off the account
           | managers and laying off the engineers from the downturn in
           | revenue.
        
         | impossiblefork wrote:
         | It's pretty funny though, that people so recently talked of
         | labour shortages, but are now, saying, not with their mouths,
         | but with money, the opposite-- across both Google, Spotify and
         | some others, that there are a whole 6% too many.
         | 
         | It's even funnier in Swedish, because the word for
         | redundancies, is arbetsbrist, 'shortage of work'.
        
         | RomanPushkin wrote:
         | What did he prove? First, the effect is going to be visible
         | long-term. Second, they're hiring as hell. For example, they
         | have reached out to me, and I spoke with recruiters just to
         | understand what's going on a little bit better. So yes, they're
         | hiring people now. What he proved is that when you fire, you
         | hire immediately (but secretly).
        
         | Loughla wrote:
         | Outside looking in - it appeared that large tech companies were
         | hiring a billion engineers just so they had them. Like safety
         | in redundancy, and if you were employing the best and the
         | brightest, they couldn't make a product that undercut you.
         | 
         | I guess now's the time to start undercutting?
        
         | qbasic_forever wrote:
         | The companies like Google, Microsoft, Amazon, etc. also having
         | major layoffs are not and have not been running at a loss for a
         | long time.
         | 
         | Most of these layoffs are driven by shareholder demand. I
         | suspect this will be a bit like 2008 where tech companies
         | pulled back and then realized it was a huge mistake and went on
         | hiring sprees again after a year.
         | 
         | Twitter just posted a 40% or so reduction in income this
         | quarter. It seems way too early to say they didn't need all the
         | people they laid off. From everything I see their ad revenue is
         | cratering from poor targeting, reliability, etc.
        
         | mardifoufs wrote:
         | This has absolutely nothing to do with the dotcom bubble. You
         | can't seriously look at the balance sheets and revenue flows of
         | tech corporations now and still think there is any comparison
         | to be made with what happened 20 years ago.
         | 
         | Big tech generates insane amounts of money, which is why they
         | have been pretty resilient to the massive fall in stock prices
         | in early 2022 while still ending the year with a net increase
         | in headcount.
         | 
         | Allusions to a pending "dotcom bubble burst 2.0" have also been
         | common in every "downturn" since then and have never really
         | materialized.
        
       | [deleted]
        
       | RSHEPP wrote:
       | Sounds like a great time to reduce my monthly payments to Spotify
       | by 100%. I overspent during the past two years and based on the
       | macro economic conditions I need to increase my personal finance
       | efficiency.
        
         | whymauri wrote:
         | But do you take full accountability?
        
       | Ekaros wrote:
       | Lot of talk about productivity. But I really wonder with
       | companies like Spotify. Shouldn't they be at this point pretty
       | mature? And is there really value looking for the next moonshot
       | or big win? Did they actually even need the pool of engineers
       | they had? There is always maintenance and keeping things running,
       | making them better, but how much greenfield work would there be
       | in short term?
        
       | mikhael28 wrote:
       | Spotify is overrated. Apple Music is the same, in the aggregate,
       | and Apple's family plan allows you to share it with everyone.
       | 
       | Spotify also sells all your previously 'private' public playlists
       | to other platforms and advertisers.
        
       | flohofwoe wrote:
       | > Ostroff helped shape Spotify's podcast business...
       | 
       | If that means that they're paddling back on shoving that podcast
       | bullshit into your face and return to focusing on music
       | streaming, then there's at least a silver lining. Reading how
       | podcasts have higher "engagement" that's probably wishful
       | thinking though.
        
       | capableweb wrote:
       | As a long time user of Spotify (almost two decades in a couple of
       | years...), this is my biggest gripe with Spotify:
       | 
       | https://i.imgur.com/wfSka2H.png
       | 
       | More and more playlists are starting to look like this, which is
       | starting to piss me off. I don't really care if it's the record
       | companies fault or whoever, and I blame 100% myself for getting
       | into this situation in the first place.
       | 
       | Started to use Bandcamp more and more lately, and feel a lot
       | safer because of it. I'm hopeful Bandcamp won't ever need to do
       | layoffs either, as they are not trying to take over the world
       | with their SaaS or pivot to focusing on Podcasts, or stuff like
       | that.
       | 
       | But Spotify was really useful for a long time and still discovery
       | is second to none.
        
         | dmitriid wrote:
         | > I don't really care if it's the record companies fault or
         | whoever, and I blame 100% myself for getting into this
         | situation in the first place.
         | 
         | Interestingly that in a situation where it's 100% copyright
         | holders who are at fault, you say that you 100% blame yourself,
         | but in reality you blame Spotify be cause that's your biggest
         | gripe with it.
         | 
         | Somehow no one ever blames the three-four companies (see
         | https://en.wikipedia.org/wiki/Music_industry#Consolidation)
         | that hold 90% of the world's recorded music hostage.
        
         | yawnr wrote:
         | Well they're owned by Epic now, so that may not be up to them
         | anymore.
        
       | type0 wrote:
       | Can they compete with Deezer for audio quality or will they also
       | be reducing that by 6%?
        
       | krono wrote:
       | No mention of who is taking full responsibility for the
       | situation!
       | 
       | Edit: The CEO takes full "accountability" instead, further down
       | the original announcement[0]
       | 
       | [0]:
       | https://web.archive.org/web/20230123124201/https://newsroom....
        
         | PragmaticPulp wrote:
         | Given how much all of the accountability statements are getting
         | sneered at and used for media/social media outrage bait, I
         | wouldn't blame companies for going back to simple just-the-
         | facts announcements.
         | 
         | In the current climate where every word and every sentence is
         | picked apart, saying as little as possible might be the only
         | strategy that minimizes outrage, ironically.
        
           | halgir wrote:
           | I think just dropping the free accountability statement would
           | help. It's not so much the lack of responsibility, it's the
           | accompanying false humility that annoys people.
           | 
           | Or even better, back your words with actions. Like the
           | Nintendo executive team did a decade ago.
        
         | [deleted]
        
         | CydeWeys wrote:
         | They're all meaningless buzzy catchphrases. Until a CEO takes
         | responsibility by resigning themselves, or forfeiting their
         | pay, or something else meaningful, it's all just words.
        
           | xyzelement wrote:
           | I disagree, adults speak in language of responsibility which
           | doesn't imply throwing yourself on the sword.
           | 
           | When you get a speeding ticket, do you blame the cop, the
           | car, the state, anyone but yourself? Or do you say "yup, I am
           | the one behind the wheel so I am responsible"
           | 
           | It doesn't mean you will never allow yourself to drive again
           | or to only go 10mph from now on as self punishment. It just
           | means you acknowledge your part like an adult instead of
           | finding a way to appear blameless.
           | 
           | or: We had a prod outage, I was the code reviewer. "yup, I am
           | the one who fucked up. It's my responsibility". Doesn't mean
           | I am going to forego salary for the next 10 years to make the
           | company whole for the outage.
           | 
           | I wonder if people confused by the 'responsibility' language
           | themselves take responsibility for things in their lives,
           | because they seem literally confused about what it means.
        
             | CydeWeys wrote:
             | > When you get a speeding ticket, do you blame the cop, the
             | car, the state, anyone but yourself? Or do you say "yup, I
             | am the one behind the wheel so I am responsible"
             | 
             | If you admit you're the one who was behind the wheel and
             | thus responsible, then you DEAL WITH THE PENALTY, which
             | includes paying a fine, points on your license, potential
             | driver's ed, etc.
             | 
             | These CEOs aren't facing any actual consequences here.
             | They're just parroting the empty words "I take
             | responsibility".
             | 
             | > or: We had a prod outage, I was the code reviewer. "yup,
             | I am the one who fucked up. It's my responsibility".
             | Doesn't mean I am going to forego salary for the next 10
             | years to make the company whole for the outage.
             | 
             | Complete red herring. I'm struggling to believe that you're
             | arguing in good faith here, actually. You really can't see
             | any difference between thousands of people being laid off
             | and making a bug in a code review??
        
               | xyzelement wrote:
               | >> you really can't see any difference between thousands
               | of people being laid off and making a bug in a code
               | review??
               | 
               | Thank you for engaging. I intentionally picked something
               | small like a production outage because - unlike
               | hiring/firing 10k+ people - it's something more of us can
               | relate to.
               | 
               | The topic at hand is - what does it mean to say "I am
               | responsible?" I am using the relatable examples to
               | explain it - it means as an adult I am saying "I am not
               | blaming someone else, I am the one in charge here, and
               | this happened on my watch / I made the decision."
               | 
               | This is in contrast to saying things like "the market is
               | forcing our hand, I am powerless here" or "people under
               | me made bad hiring decisions, I had no idea" - you are
               | acknowledging that what happens on your watch, good or
               | bad, is ultimately on you.
               | 
               | It's a separate concept from punishment. If you keep
               | making bad decisions, your employees can chose to punish
               | you by quitting, your boss (the board/shareholders) can
               | punish you by asking you to resign, etc. Acknowledging
               | responsibility over the decision doesn't imply you have
               | to fire yourself.
        
           | deltree7 wrote:
           | Sure, next time you introduce a bug in your code, you'll
           | immediately resign, right?
        
           | juve1996 wrote:
           | CEOs will never really take the same responsibility. They're
           | all rich. Even if they resign they'll have another job
           | easily.
           | 
           | The problem is the system. With an adequate social safety
           | net, these layoffs matter much, much less.
        
         | fleddr wrote:
         | In the tech sector, "taking responsibility" means admitting
         | your decisions led to the situation yet you'll externalize the
         | consequences to employees.
         | 
         | In other words, it means nothing.
         | 
         | Taking actual responsibility could include stepping down,
         | canceling bonuses, reduced compensation for leadership. It
         | could include steps to become better at forecasting rather than
         | randomly guessing. It could include ironing the business model
         | to become less dependent on the whims of advertisers. It could
         | include re-education and internal placement of the excess
         | employees or reducing their hours rather than firing them.
         | 
         | Why would you do that though when not only can you get away
         | with doing nothing, the market rewards it.
        
           | expazl wrote:
           | > yet you'll externalize the consequences to employees.
           | 
           | If a F1 driver admits his driving led to them loosing the
           | race even though engineering did everything right, it's still
           | the entire team that doesn't get the price. And if the entire
           | team doesn't get enough funds in from their endeavor they
           | might have to carry out layoffs. And you can be sure they'll
           | lay off one of the 40 engineers before they lay off the
           | driver.
           | 
           | That does not mean the driver can't mean it when he says he's
           | sorry and taking responsibility. Trust me, he would rather be
           | on the podium than loosing.
           | 
           | The mob mentality of "fire the driver first" will only leave
           | you with 40 engineers starring at a car in a lot. You might
           | say they need to change the driver, and that's certainly
           | what's going to happen if management sees an opportunity for
           | a better driver, but they can't just switch drivers between
           | every race, imagine the spectators outrage at this team
           | that's completely unpredictable and only ever keeps a driver
           | for multiple races when he's first on the podium. And what
           | driver would ever want to sign such a contract? Leave which
           | ever team they are on for the chance at a higher pay,
           | conditioned on getting 1 every time, otherwise the contract
           | is void.
        
           | deltree7 wrote:
           | I'm sure you took responsibility for your bad stock markets
           | returns in 2022 by saying you'll never make investment
           | decision ever again and hand everything to your partner,
           | right?
        
           | cryptos wrote:
           | You nailed it! I'm always wondering how someone takes
           | responsibility and then absolutely nothing changes for him
           | personally.
        
           | rchaud wrote:
           | Tim Cook had his compensation cut, and Reid Hoffman left the
           | CEO role (becoming exec chairman). AFAIK, all other bigco
           | CEOs did the 'taking responsibility' thing of doing
           | absolutely nothing.
           | 
           | I can see why Spotify is reluctant to dump the CEO. Theirs is
           | a business model that's never been profitable anyway, so
           | keeping the founder on couldn't make things any worse.
        
         | halgir wrote:
         | The actual statement by Ek contains: "I take full
         | accountability for the moves that got us here today."
         | 
         | Interestingly, responsibility is usually used as a get-out-of-
         | jail-free phrase, while accountability literally means that you
         | will take consequences. Maybe I'm just reading too much into
         | the literal meaning of otherwise similar words.
        
           | rchaud wrote:
           | It is a get-out-of-jail free card only if you've squared it
           | with the board of directors beforehand.
        
           | jungong wrote:
           | [dead]
        
           | michaelmior wrote:
           | The dictionary definition of accountable says nothing about
           | consequences.
           | 
           | From Merriam-Webster
           | 
           | 1) subject to giving an account : answerable 2) capable of
           | being explained : explainable
        
             | marcosdumay wrote:
             | It sure does imply consequences. Click on that link in
             | "answerable".
        
               | michaelmior wrote:
               | The most relevant definition seems to be "1: liable to be
               | called to account : responsible"
               | 
               | I still don't see any implication of consequences.
        
             | halgir wrote:
             | You're right. Though checking their synonym guide [1],
             | there is this:
             | 
             | > accountable suggests imminence of retribution for
             | unfulfilled trust or violated obligation.
             | 
             | [1] https://www.merriam-webster.com/dictionary/accountable
        
         | niij wrote:
         | Do we have to have this same conversation on every single one
         | of these threads?
        
           | krono wrote:
           | My comment was posted mostly in jest - my stance on it is
           | mostly neutral, but considering the level of engagement it
           | still generated even though this meme is admittedly getting
           | old, there is or was clearly more to be said on the subject.
        
       | jzb wrote:
       | I dunno, maybe if Spotify wasn't spending hundreds of million on
       | podcast deals and actually focusing on what its users want, they
       | wouldn't need to lay people off.
       | 
       | Any way you slice it, there's no way that the Rogan deal pays for
       | itself. Spotify is stingy AF with the artists that drove people
       | to the service, and then firehoses Rogan with cash and tries to
       | shove podcasts down people's throats. I was a happy Spotify
       | subscriber for a long time but they just kept making the service
       | worse while ratcheting up prices.
        
         | selfawareMammal wrote:
         | Sorry but how's Spotify's service worse?
        
         | waylandsmithers wrote:
         | Not to mention their podcast deals are bad for the consumer-
         | Spotify was and is great because people _wanted_ to pay a
         | monthly fee for access to (nearly) unlimited music instead of
         | buying albums.
         | 
         | Podcasts on the other hand already worked great before Spotify
         | started taking them exclusive.
        
         | mjr00 wrote:
         | > I dunno, maybe if Spotify wasn't spending hundreds of million
         | on podcast deals and actually focusing on what its users want,
         | they wouldn't need to lay people off.
         | 
         | One of the people specifically called out is Chief Content
         | Officer Dawn Ostroff, who "decided to depart," which is how you
         | phrase C-level firings when they coincide with layoffs.
         | 
         | I imagine that the disastrous podcast deals with the royals and
         | Obamas had something to do with that.
        
           | jzb wrote:
           | That's good but hardly good enough. No way they drove those
           | deals without the CEO's buy-in.
        
           | ghaff wrote:
           | I confess I don't get the big ticket podcast exclusives. But,
           | then, I basically never listed to any of the "big name" talk
           | radio shows either (and even actively avoided them).
        
             | Reimersholme wrote:
             | What's weirder to me is how I can't remember even seeing
             | them advertised within Spotify. I know there are some
             | really need content Spotify is producing, but the ones I'm
             | aware off I've generally found by accident somewhere on the
             | Internet, never through their own UI.
        
               | pc86 wrote:
               | Can we switch accounts?
               | 
               | I have listened to exactly 1/2 of one episode of a
               | podcast on Spotify and now have to actively navigate away
               | from the main page of the app if I want to do what I do
               | the other ~99.9% of the time, which is listen to one of a
               | handful of playlists or try to find other similar music.
        
         | nivenkos wrote:
         | But Spotify doesn't pay the artists directly, the deals are
         | with the record companies.
         | 
         | The real issue here seems to be over-hiring and a lot of
         | acquisitions for all sorts of marginal stuff like video
         | podcasts, audiobooks, etc.
        
         | scarface74 wrote:
         | Streaming music has always been a very bad business. No matter
         | how much Spotify grows, it will only make 30% gross margins.
         | Almost the definition of a tech company is one that has high
         | fixed costs and low to almost 0 marginal cost and can take
         | advantage of scale. Spotify doesn't have that.
         | 
         | At least with podcasts, they don't have to pay a third party
         | for each additional user.
         | 
         | Spotify suffers from the "Dropbox problem". Streaming music is
         | a feature not a product.
        
           | saurik wrote:
           | Anyone can build and add Dropbox-like functionality to their
           | product suite (and I was even involved in a couple such
           | efforts a while back)... but Spotify is not at all like that,
           | in that not only is having the music licenses they have more
           | than just some engineering work, people bring their music _to
           | Spotify_ , and so you can't even have a few ins and a major
           | investor and then try and quickly get the same licenses to
           | have the same service as you would still be missing
           | essentially all of the music I listen to on Spotify.
        
             | scarface74 wrote:
             | That's not the concept behind "a feature not a product".
             | The entire idea is that a major company can add streaming
             | as a bullet point to their ecosystem - like Apple and
             | Amazon - and doesn't need to be profitable by itself.
             | 
             | That is the "DropBox problem". DropBox is trying to be a
             | sustainable company while Apple, Microsoft, Google, Adobe
             | and Amazon just throw it in as a feature in their
             | portfolios.
             | 
             | This is the same with the movie studios in 2023. In 2006
             | when Apple first approached the movie studios, the idea of
             | VOD digitally was new. Now the studios have a standardized
             | process for it. There are a dozen VOD services with the
             | same library because the industry has standardized
             | licenses.
             | 
             | VOD = Video on Demand where you pay to rent or buy each
             | individual film.
             | 
             | There are only three major record labels and if you can get
             | deals with those, you cover most of the music people care
             | about.
             | 
             | The smaller labels will come along
        
               | saurik wrote:
               | The business of Spotify isn't "streaming music": it is
               | "music licensing"; and, even there, it isn't like most of
               | the music was due to Spotify going out of their way to
               | contact people and get their music on their service:
               | people--not even "labels", but _people_ --upload their
               | music directly to Spotify.
               | 
               | You _can_ compete with that, but it is a _massive_ uphill
               | battle; it is similar to trying to create a new app
               | market competitor from scratch and assuming that all of
               | the apps which exist on someone else 's platform--many of
               | which might not even be maintained by people who give a
               | shit anymore--are somehow going to appear on your
               | platform.
               | 
               | > There are a dozen VOD services with the same library
               | because the industry has standardized licenses.
               | 
               | This is entirely untrue... hell: _Apple_ doesn 't even
               | have a lot of the content that exists out there anymore,
               | as numerous titles now can only be purchased from Amazon,
               | as it was essentially uploaded directly. I _wish_ I could
               | obtain all of the movies /TV I consume from Apple, but
               | that just isn't how this industry operates.
               | 
               | > There are only three major record labels and if you can
               | get deals with those, you cover most of the music people
               | care about.
               | 
               | This wouldn't be sufficient to cause most users to switch
               | from Spotify. It certainly wouldn't get me to switch from
               | Spotify, and I don't even like Spotify!
               | 
               | > The smaller labels will come along
               | 
               | The long tail of music doesn't even involve "labels" :/.
        
               | scarface74 wrote:
               | Why are you even arguing this? There already exist two
               | major competitors that are treating streaming music as
               | just an insignificant portion of a multibillion dollar
               | business - Amazon and Apple. Also to a lesser extent
               | Google/YouTube.
               | 
               | As far as the content that's unavailable - it doesn't
               | matter.
               | 
               | The long tail theory has been debunked decades ago
               | (https://mackinstitute.wharton.upenn.edu/2018/long-tail-
               | theor...). You can't make money at scale with out having
               | the most popular content.
               | 
               | > This wouldn't be sufficient to cause most users to
               | switch from Spotify. It certainly wouldn't get me to
               | switch from Spotify, and I don't even like Spotify!
               | 
               | You're a geek posting to HN (as am I) you don't represent
               | the mainstream and it doesn't matter if people switch or
               | not. Spotify needs to be profitable as an ongoing concern
               | and it isn't and will never be extremely profitable. Its
               | competitors don't have to have a profitable streaming
               | service.
               | 
               | > Amazon, as it was essentially uploaded directly. I wish
               | I could obtain all of the movies/TV I consume from Apple,
               | but that just isn't how this industry operates.
               | 
               | Again, a successful business doesn't depend on the long
               | tail - that's been debunked by every single market - app
               | stores, music, movies, etc. the vast majority of money is
               | made from hits.
               | 
               | You're also failing to realize that Spotify's issue of
               | trying to be profitable just streaming music while its
               | competitors can sell at cost to prop up other businesses.
        
               | saurik wrote:
               | > Why are you even arguing this? There already exist two
               | major competitors that are treating streaming music as
               | just an insignificant portion of a multibillion dollar
               | business - Amazon and Apple. Also to a lesser extent
               | Google/YouTube.
               | 
               | Amazon, Apple, and Google (to their lesser extent due to
               | YouTube) are also in the content licensing business...
               | the same business Spotify is in. Are you saying that
               | iTunes, or Amazon.com, is also a shitty business? I'm
               | betting you aren't. If you are, I recommend looking at
               | how much money Apple makes on iTunes: it is sufficient to
               | have let them _subsidize_ sales of the iPod.
               | 
               | The reason Spotify is in a bad place is because they have
               | bad contracts for their core content (vs. Apple) and a
               | lack of vision for how to change up their business model
               | (maybe by having a feature similar to Amazon Prime / Hulu
               | where you have to pay for add-on subscriptions for
               | various artists), not because "music streaming is a
               | feature": their business isn't "music streaming".
               | 
               | > Again, a successful business doesn't depend on the long
               | tail - that's been debunked by every single market - app
               | stores, music, movies, etc. the vast majority of money is
               | made from hits.
               | 
               | I am not saying the vast majority of revenue comes from
               | the long tail, I am saying having access to a large
               | catalog matters and prevents even large companies from
               | being able to just shut you off as I do believe that
               | people--yes, actual people, like my customers--actually
               | care about _access to_ the long tail, even if it isn 't
               | most of their usage or where you book your revenue.
               | 
               | > You're also failing to realize that Spotify's issue of
               | trying to be profitable just streaming music while its
               | competitors can sell at cost to prop up other businesses.
               | 
               | They aren't, though! iTunes is profitable. It has tried
               | (and succeeded!) to add Spotify as a feature, but Spotify
               | can and should respond by adding track sales or artist-
               | specific subscriptions as a feature. There are tons of
               | things they could be doing--because their business is not
               | music streaming: their business is content licensing--to
               | become profitable. Why don't they at least have a built-
               | in Patreon mechanism where people can pay arbitrarily
               | more for their subscription and have it (after they take
               | a cut) doled out to their streamed artists?! They are
               | just dumb.
               | 
               | They _certainly_ aren 't Dropbox: Dropbox's entire
               | business is just a technological feature and
               | fundamentally continued to be a feature forever. There is
               | no real reason to use their feature over someone else's
               | implementation of that feature except code quality (and I
               | have a queued article to write about how Dropbox is
               | broken ;P). There absolutely is a moat that Spotify has
               | here, and to ignore that is extremely strange. They may
               | be squandering their ability to compete, but they aren't
               | "just a feature". Being a dumb company that needs better
               | leadership to establish a better business model is not
               | the same as being a feature.
        
               | scarface74 wrote:
               | > Are you saying that iTunes, or Amazon.com, is also a
               | shitty business? I'm betting you aren't.
               | 
               | Yes, it is a shitty _standalone_ business. The purpose of
               | iTunes was to sell more iPods - the whole "commoditize
               | your complements".
               | 
               | The purpose of Apple Music was to be a "feature" to sell
               | high margin Apple Watches, AirPods, HomePods, to
               | integrate tightly with Siri, etc.
               | 
               | > If you are, I recommend looking at how much money Apple
               | makes on iTunes: it is sufficient to have let them
               | subsidize sales of the iPod.
               | 
               | That's not what happened. SJ himself said that the
               | purpose of iTunes was just to break even to sell iPods.
               | iPods were high margin businesses. By the time Apple paid
               | the labels 70% and then paid the credit card processing
               | fees, it wasn't make much selling 99 cent songs.
        
             | ben7799 wrote:
             | Very few actually feel good about bringing their music to
             | spotify.
             | 
             | Other than the very few giant artists getting the
             | sweetheart deals with guaranteed payouts most feel like
             | they're forced to bring their music to spotify even though
             | they know the whole thing is just bad.
        
               | saurik wrote:
               | I don't understand how this detail changes anything: you
               | still can't just build a competitor to Spotify and
               | magically have all of its music.
        
               | scarface74 wrote:
               | You don't need all of its music.
               | 
               | You need the three major music producers and the rest
               | will come.
               | 
               | But that's not the point. The "feature not a product"
               | saying means that a major company has your entire reason
               | for existing as a feature in their product.
               | 
               | Streaming music is already just a feature for Apple and
               | Amazon.
               | 
               | Just like today, you wouldn't create a separate spell
               | checker application like in the 80s.
        
               | saurik wrote:
               | > You need the three major music producers and the rest
               | will come.
               | 
               | This isn't how the market works. I know musicians, and
               | they don't care that you are playing licensing
               | monopoly/bingo and have 3 key squares and now they
               | clearly are going to waste their time uploading their
               | music to your service. You need to essentially already
               | have the subscriber count to provide them a new revenue
               | source that is greater than the pain of dealing with
               | you... which forms a brutal catch-22.
               | 
               | This is similar to why live video also isn't just a
               | feature and YouTube is having to go to war with them to
               | bring streamers to their platform (though as Twitch isn't
               | really about a "back catalog", Spotify is actually in a
               | much better position than Twitch). Social networking is
               | another example of a thing that isn't just a feature you
               | can throw together, even if it looked like that to a lot
               | of companies.
               | 
               | Essentially, anywhere there is either a catalog or a
               | network effect to be had (these are related concepts),
               | you have to provide something that isn't just equivalent
               | but fundamentally _new_ to build a user base that can
               | pull in the new market participants, or people are going
               | to keep using the old service _even if they hate it_
               | because it has a better library.
               | 
               | (The alternative is you have to do something explosively
               | better for the content producers, enough that they want
               | to get on the ground floor. The most obvious way to do
               | that is by just handing them free money with massive
               | subsidies due to VC raises, which was certainly a lot
               | easier a few years ago than it is today.)
               | 
               | I was the developer behind a major content marketplace
               | that had tens of millions of users and which was able to
               | operate for over a decade despite tons of people trying
               | to build competitors. Hell: my software was open source!
               | I only shut it down because the entire market I was in
               | stopped being technologically viable (resulting in my
               | lawsuit against Apple), and it still took years for the
               | content to become stale enough for people to move on
               | (which doesn't happen as quickly for music). I am
               | speaking from direct experience.
               | 
               | > Just like today, you wouldn't create a separate spell
               | checker application like in the 80s.
               | 
               | Spell checking, like Dropbox, has no network effect and
               | no first mover advantage.
        
               | scarface74 wrote:
               | > This isn't how the market works. I know musicians, and
               | they don't care that you are playing licensing
               | monopoly/bingo and have 3 key squares and now they
               | clearly are going to waste their time uploading their
               | music to your service. You need to essentially already
               | have the subscriber count to provide them a new revenue
               | source that is greater than the pain of dealing with
               | you... which forms a brutal catch-22.
               | 
               | You keep acting as if there aren't two trillion dollar
               | market cap companies that don't already have streaming
               | services that don't have to be profitable.
               | 
               | You also act like the day that Apple announced "Apple
               | Music" every musician wasn't scrambling to get on the
               | platform.
               | 
               | > Spell checking, like Dropbox, has no network effect and
               | no first mover advantage.
               | 
               | If Facebook announced tomorrow that they were going to
               | release "Facebook Streaming" they already have an
               | audience. We aren't talking about Joe Bobs Music
               | streaming service.
        
         | overgard wrote:
         | I forget where I heard this, I think it was on Breaking Points,
         | but I think Rogan's audience is bigger than CNN, MSNBC, and Fox
         | News _combined_. I doubt they regret the Rogan deal.
        
         | missedthecue wrote:
         | If they don't have enough work for their workforce, would you
         | still say they're morally obligated to keep writing paychecks?
        
           | sarchertech wrote:
           | What does a recession have to do with the amount of work you
           | have for employees to do? If a recession causes 5% of their
           | subscribers to cancel, it's not like there's 5% less work to
           | do company wide.
           | 
           | If the company hired more people than they have work for, it
           | likely has little to do with a possible recession.
           | 
           | In the case where it is true that they have too many
           | employees, I think there is a moral responsibility to attempt
           | to find profitable work for those employees. Or to at least
           | ride it out and make a smaller profit in the lean years if it
           | doesn't seriously endanger the health of the company.
           | 
           | Corporations aren't merely groups of people, they have been
           | granted additional legal rights like limited liability. I'm
           | fine with laws that say something to the effect that in
           | exchange for limited liability, corporations over a certain
           | size must give some consideration to the employee welfare.
           | Many countries require that workers have board
           | representatives.
        
           | jjulius wrote:
           | >If they don't have enough work for their workforce, would
           | you still say they're morally obligated to keep writing
           | paychecks?
           | 
           | Where does OP say that Spotify is "morally obligated to keep
           | writing paychecks"?
        
             | missedthecue wrote:
             | He didn't, hence why my comment has a question mark.
        
               | jjulius wrote:
               | >He didn't...
               | 
               | >... would you _still_ say...
        
         | randomifcpfan wrote:
         | Blame music publishers. They are the ones raising prices and
         | paying artists pennies. Spotify has no power to change this.
         | 
         | Spotify is/was spending heavily on podcasts to try to create a
         | new revenue stream with better economics.
        
           | jzb wrote:
           | Spotify has plenty of power to change this and it's
           | disingenuous to argue otherwise. Spotify has lobbied hard to
           | affect royalty rates for music / songwriters and keep them
           | low. Certainly the music publishers / labels are _also_ to
           | blame, but Spotify isn 't innocent.
           | 
           | Also - Spotify wanted Podcasts so they went to the podcasters
           | and made deals. Spotify is apparently paying to create
           | royalty free music it can insert into playlists. Spotify
           | could just as easily be making direct deals with, say, indie
           | music artists or wooing bands away from major labels if it
           | wanted to focus on music.
           | 
           | It's not. It's aiming for the streaming service equivalent of
           | reality TV instead but paying _big_ money for them instead of
           | to musicians.
        
         | ohyoutravel wrote:
         | Apropos of little, I cancelled my family Spotify plan because
         | of the Joe Rogan deal and moved to Apple Music. Totally forgot
         | that's the reason I moved us until your comment.
        
           | snird wrote:
           | I moved when Rogan hosted Roger Waters, who kept saying anti-
           | semitic things with no push back at all.
           | 
           | Spotify aligning themselves with content, any content, made
           | them a publisher and not a software company. That's their
           | biggest mistake.
        
         | [deleted]
        
         | Taylor_OD wrote:
         | > Any way you slice it, there's no way that the Rogan deal pays
         | for itself.
         | 
         | Especially when you still get ads on podcasts. Listening to any
         | podcast on Spotify is so frustrating because I pay for the
         | service and STILL get a half dozen ads an episode.
        
         | pm90 wrote:
         | Right, it seemed like a greedy move. Apple podcast app is just
         | fine imo.
        
       | [deleted]
        
       | erdaniels wrote:
       | Unrelated but, does anyone have a good universal solution of what
       | music you "like" or "own"? I want to move off of Spotify but I
       | want to make sure all my music is playable from some platform or
       | locally.
       | 
       | A decade ago I moved off the good iTunes and foolishly lost my
       | complete library of metadata of songs, so I want to avoid that
       | again.
        
         | enjikaka wrote:
         | TIDALs sister company TBD touches on that here
         | https://developer.tbd.website/blog/what-is-web5/
        
         | lunatesi wrote:
         | If you have iOS, there's an app called SongShift. I think some
         | features are paid, but I used it once a few years ago to
         | transfer my Spotify library into Apple Music to try it out. It
         | looks like it can also export to JSON too (that might be a paid
         | feature?).
        
         | skydhash wrote:
         | Scrobbles through Last.fm? But I don't think you can export
         | directly from Spotify (maybe through playlist and one of the
         | music transfer tools? I mostly use Spotify to listen through a
         | recommended album. And ads bother me, so I switched to premium
         | (It's 2.99 for me).
         | 
         | I have a local library of ALAC albums that I like. I used
         | Syncthing to sync it to my home server, where there is a Plex
         | installation (When I want to play via the ATV). And I convert
         | to AAC 256kbps to my iPhone (Bluetooth is lossy anyway). More
         | hassle than playing via Spotify, but the latter's UX is so bad
         | that it's worth it. Also I have some excellent headphones
         | (Hifiman Sundara and Sennheiser 6XX).
        
           | ascagnel_ wrote:
           | While Plex has some shortfalls with handling music (mostly
           | that most tags are applied at the album level, not the track
           | level), it's still the best option I've tried for handling
           | your own streaming setup. The PlexAmp[0] app they developed
           | sands off many of the rougher UX elements from the web app,
           | but it requires a paid version of the Plex server.
           | 
           | [0] https://plexamp.com
        
         | SketchySeaBeast wrote:
         | When you say "own" what do you mean? CD's? Or some digital
         | purchase?
         | 
         | I believe modern iTunes is DRM free so you can keep all your
         | purchases safe that way. Alternatively Youtube Music allows you
         | to upload all your local music so you can their service to
         | stream it. I've bought things on iTunes and then uploaded them
         | to Youtube Music.
        
           | erdaniels wrote:
           | Sorry I should have been more specific. I care less about the
           | actual song content itself than having a synchronized list of
           | the names (i.e. metadata) of all the songs I like/save/listen
           | to.
        
         | jjav wrote:
         | > A decade ago I moved off the good iTunes and foolishly lost
         | my complete library of metadata of songs, so I want to avoid
         | that again.
         | 
         | Relying on anything that is closed source, or worse, an online
         | service, brings with it the eventual inevitability of losing
         | everything. No product or company lasts forever.
         | 
         | For things that are ephemeral in interest (e.g. movies you only
         | care to watch once), that's fine.
         | 
         | For things that you really like and want to have a strong
         | guarantee you can enjoy them later, the only solution is open
         | formats and have the data in your control.
         | 
         | For all the music (and a few handful movies) that I want to be
         | able to enjoy forever, I keep them locally in a redundant
         | backed up ZFS server. No corporate change of heart can ever
         | take those away from me.
        
       | shadowtree wrote:
       | The core question is how many employees do you need run a stable
       | internet business?
       | 
       | Stable means no massive new product lines, growth, etc.
       | 
       | Spotify is what it is. An app across a handful platforms,
       | streaming infrastructure, and a legal/purchasing dept for music
       | rights.
       | 
       | Does this need 7000 people? Zero chance. Is it 1000? 700? 250? No
       | ones knows yet, but everyone remembers WhatsApp at acquisition
       | and watches Twitter to kind of continue without 80% of its former
       | employee base.
        
         | that_guy_iain wrote:
         | I would be surprised if there tech team was larger than 2000
         | people. Majority of those people will be marketing, sales,
         | legal, talent/content, etc.
        
         | MontyCarloHall wrote:
         | >legal/purchasing dept for music rights
         | 
         | I would imagine this is where the majority of their staff are.
         | Spotify's catalog is huge, and record labels are constantly
         | renegotiating extremely granular contracts with the streaming
         | services (i.e. at the individual song level). For example, I've
         | seen particular songs on albums disappear for a few weeks (the
         | rest of the album can still be played), then mysteriously
         | return (or not), all because of some cryptic licensing shift
         | from the record label. There is no easy way to automate this; a
         | human interaction must occur between the label and streaming
         | service every time a weird licensing shift causes a particular
         | song/album/artist to be removed. Given the size of Spotify's
         | catalog, there are probably thousands of such licensing changes
         | each day.
        
           | shadowtree wrote:
           | Pretty sure the DRM process in YouTube is heavily automated -
           | why wouldn't Spotify do the same? Give the labels an API,
           | then they can dynamically maintain all that crap themselves.
        
         | higeorge13 wrote:
         | The majority of saas business is like this: Numerous engineers
         | trying to invent new unnecessary features or sitting idle
         | through irrelevant projects and meetings or doing continuous
         | refactoring and 'let's use the new x
         | tool/process/language/whatever' every x months, numerous
         | managers 'managing' them and managing these managers and
         | fighting about headcount and other irrelevant metrics and so
         | on, numerous product managers having no clue and just copy-
         | pasting features from different saas, ux designers iterating on
         | the designs every year and so on, founders keep founding the
         | same saas with another tens of competitors building the same
         | thing snd so on.
         | 
         | We are really privileged to be in such an industry, gaining so
         | much money (depending on location) compared to other
         | professions and doing so meaningless job. IMO the majority of
         | saas business would operate decently with at least half of
         | their staff or they shouldn't exist at all. Most of them just
         | facilitate invented features for other saas anyway.
        
         | steviesands wrote:
         | If your goal is maintenance mode for the company, milk profits
         | for 10 years, and to be eventually replaced by competitors then
         | I think you can run a company very slim. The other question
         | would be, if you have captured a large market share (100s of
         | M/yr to Billions in revenue), how many employees do you need to
         | prevent an upstart from overtaking you through improved tech,
         | product, or strategy?
         | 
         | For example, if FB never invested in ML they would have had
         | even larger margins (fewer GPUs and ML engineers), but now that
         | investment may pay off by fending off tiktok through copycat
         | products and also rebuilding ad attribution after ATT. To
         | complicate matters, before it happens, you don't know in what
         | area your competitor will arise (ML? Product? Paradigm shift?).
         | Similar examples with Google vs. OpenAI, ~2010s Kubernetes wars
         | between cloud providers, Snap vs. FB/Twitter, etc.
        
           | shadowtree wrote:
           | If you compete with startups with tens of employees -
           | shouldn't you use tens of employees to counter their
           | strategies too?
           | 
           | Do you need endless hanger ons in HR, PR, all kinds of non-
           | producing departments?
           | 
           | Crappy CEOs, which is not the same as a crappy founder, have
           | grown companies without any sense and purpose. Daniel is a
           | great founder and rode great luck. But, he should have been
           | replaced with a Eric Schmidt operator figure a while ago.
           | 
           | I think the founder clings to company forever is coming to an
           | end, in most cases going public should mean a new CEO.
        
       | nrook wrote:
       | The tide is turning; tech owners are attempting to curtail the
       | high costs of labor in the software industry.
       | 
       | The only way for labor to fight back is to stand together and
       | form a union.
        
         | gfdsgfsdgfs wrote:
         | Unions often have coasters and quiet quitters. As an
         | experienced developer I would never work with people like that.
        
           | MAGZine wrote:
           | you'd rather work harder and for less money than work with
           | people who phone it in?
           | 
           | I don't really buy the meritocracy argument that 'good devs
           | get paid more'. It hasn't really panned out in my experience,
           | except for less than 1%, probably closer to .1% of devs who
           | are really, truly exceptional AND will fight aggressively for
           | their keep.
        
             | renewiltord wrote:
             | Well, that's rather obvious, isn't it? I prefer working in
             | smaller organizations. Growth there is a factor of personal
             | growth and the company succeeding strongly enough that you
             | have something bigger to grow into. It's not enough for me
             | to work for $x for 2 years, have the company go under, and
             | then go work somewhere else for $x for another 2 years,
             | rinse and repeat with some number of coasters killing off
             | firms.
             | 
             | I want what I got: company goes through hyper-growth and my
             | own personal growth has some meaty problems to latch onto
             | so I can apply myself. You can put my Ducati on a frozen
             | lake and it's not going anywhere. Powerful engine wasted on
             | frictionless surface. What I got when I was young was that
             | if I applied myself I got better. And the company got
             | better around me. And that meant I got bigger
             | responsibilities which I could actually do.
             | 
             | Plus the obvious factor that I want my peer group as bought
             | in as I am. My morale is high. Every idea I bounce off gets
             | improved. Mistakes I'd make are caught. I am improved
             | tenfold.
        
             | andsoitis wrote:
             | I don't want to work with people who consistently let me
             | down nor would I want to work with jerks.
        
             | SpicyLemonZest wrote:
             | I would rather, yes. Working with people who phone it in
             | means my projects will unpredictably grind to a halt for
             | weeks, and getting them to work at all requires an
             | obnoxious and overbearing management style that I really
             | don't enjoy being around. I don't think it's _wrong_ to be
             | a  "phone it in" person, they're just trying to earn a
             | living so they can focus on what they care about, but that
             | doesn't mean I want to work with them.
        
           | t-writescode wrote:
           | Reminder that "quiet quitting" is a term for people who do
           | what they have been asked to do by their position. It's a
           | smear-word for a good thing.
        
         | birdymcbird wrote:
         | this misguided and only purpose it serve to make these company
         | die sooner.
         | 
         | Main problem these company took benefit of cheap interest rates
         | and overhired. hiring for promotion and ego. hiring not sake of
         | true business growth.
         | 
         | Saw entire teams and orgs at two big tech companies sitting
         | idle..senior and staff engineers have no commit in over a year.
         | ok..maybe they doing design work or something else to drive
         | efficiency or cross org optimization.
         | 
         | but no, even college level hires have no commit or other
         | meaningful work. reasonable question: what they do? especially
         | when team own no critical service and even have no support
         | burden..why 7 engineers plus 3 managers?
         | 
         | meanwhile managers getting increasing hc and fighting territory
         | battle.
         | 
         | this was massive grift. a union only make the grift last
         | longer. real solution: remove dead weight.. massive
         | bureaucracy..go back to entreprenurial root of company and what
         | it vision.
        
         | kypro wrote:
         | I don't want to sound unsympathetic, but a lot of these
         | companies massively over hired over the last couple of years.
         | While others were losing their jobs during the pandemic tech
         | employees were in higher demand than ever. In fact, I'd argue
         | the demand for tech workers has been so high over the last
         | couple of years that a lot of people who really shouldn't have
         | got a job based on their experience were able to do so.
         | 
         | I'd also note that the severance packages most tech companies
         | have been offering their employees have been very fair, and
         | with tech skills being almost universally valuable across
         | industries it's not hard for good tech workers to quickly find
         | tech jobs if they're happy to work outside of the tech sector.
         | 
         | If people want to form a union then fine, but I'm not sure what
         | you expect. Spotify isn't profitable. With the cost of capital
         | rising and a potential recession looming they obviously need to
         | be financially cautious otherwise everyone at the company will
         | eventually lose their job.
        
           | matwood wrote:
           | It's a meme at this point that Google is probably developing
           | 5 new chat apps to replace the 10 they recently killed. But
           | then everyone gets up in arms when Google trims it's
           | workforce by 6%, one which as grown by 100+% since 2016. If
           | everyone wasn't looking for anything to signal 'recession!',
           | no one would bat an eye at these big tech companies doing
           | small staffing course corrections.
        
           | jlarocco wrote:
           | There's another way to look at it, though.
           | 
           | Without unions, employees are disposable. Companies hire them
           | when money is plentiful and throw them away when it's
           | convenient. It clearly benefits the employers and investors
           | to operate that way.
           | 
           | With a union, employees aren't so dispensable, and companies
           | have to take a longer term view when hiring because they
           | can't get rid of employees on a whim. Despite being more
           | stable for everybody, it's extra difficulty for the company
           | and it balances out their power over employees.
        
             | gedaxiang wrote:
             | > companies have to take a longer term view when hiring
             | because they can't get rid of employees on a whim
             | 
             | that would make it harder to find a new job, right?
             | tradeoffs to consider
        
               | nayuki wrote:
               | Yup. Hard to fire = hard to hire. Why should an employer
               | take a chance on hiring you, if in case it doesn't work
               | out, they need to spend considerable time and money to
               | fire you?
        
             | f6v wrote:
             | You don't need a union. It's enough to have a long notice
             | period required by law.
        
         | nivenkos wrote:
         | Outside the US, labour costs are already quite low though.
         | 
         | Although I agree, they're going to get even lower. To quote
         | Neal Stephenson:
         | 
         | > the Invisible Hand has taken all those historical inequities
         | and smeared them out into a broad global layer of what a
         | Pakistani brickmaker would consider to be prosperity
        
         | paulcole wrote:
         | Isn't it possible that the high costs just aren't sustainable
         | for businesses that just don't make any money?
        
         | overgard wrote:
         | I'm not sure that collective bargaining would be helpful for
         | most tech workers -- there's such a large diversity in
         | individual skills and productivity that negotiating for
         | yourself seems to make more sense.
        
         | [deleted]
        
       | mkl95 wrote:
       | Worth noting that Spotify has less than 7000 employees so that 6%
       | will be ~400 employees. Terrible news for those affected, but it
       | would take many more to affect the industry the way FAANG layoffs
       | do.
        
       | theusus wrote:
       | Jesus fucking christ
        
       | mercwear wrote:
       | 12.184B in revenue for 2022 and they are still cutting headcount,
       | another tech company who could not care less about it's
       | employees.
        
         | survirtual wrote:
         | They do it because they can. Because most employees are
         | spineless and will fall in line.
         | 
         | People making the money we make in the tech industry should be
         | living well below their means, saving, and supplanting the tech
         | giants with worker-owned coops and guilds. If all tech workers
         | united into guilds the corps would come begging us for
         | technical contributions, and we would collectively charge up
         | the ass for it -- and all make 100% of the profits.
        
           | jstx1 wrote:
           | > most employees are spineless and will fall in line.
           | 
           | I don't get this. It's a layoff - what do you think not
           | spineless and not falling in line looks like?
        
             | survirtual wrote:
             | "If you layoff Bob, I quit"
             | 
             | "If you do these layoffs, all of us will strike"
             | 
             | In other words, unified action among the workers that costs
             | the business significantly more funds than the savings from
             | laying people off.
             | 
             | That is one example of having a spine. There are countless
             | others.
        
           | coldpie wrote:
           | I agree. However, it's easy to post on HN, and much harder to
           | do in practice. Do keep us posted if you make some progress
           | in this direction. (This isn't sarcasm, I'm genuinely
           | interested in that model.)
        
             | survirtual wrote:
             | Agreed.
             | 
             | Generally, I think that the strategy will be some
             | combination of technology, coop ownership, and worker
             | insurance.
             | 
             | Technology, for making corporation killers. Making
             | alternative tech stacks that make existing corporate
             | offerings irrelevant and requiring a sort of ransom to keep
             | the licenses non-competitive. This provides nuclear
             | leverage.
             | 
             | Cooperative ownership to align the organizations objectives
             | with individual workers. The profit is distributed in a
             | relatively fair way without these 100x pay differences, in
             | a manner members can all agree with, and planets away from
             | only caring about enriching investors.
             | 
             | Worker insurance where the coop offers healthcare and
             | minimum income guarantees between jobs with corps. When a
             | member is working for a corp, it is expected the corp pays
             | for their insurance etc. If the member leaves the corp,
             | they seamlessly continue to have healthcare etc.
             | 
             | I think the first step to making something like this happen
             | is creating an extremely valuable piece of tech that
             | society cannot do without. That acts as a beacon to attract
             | workers and provides leverage. With the appropriate legal
             | framework around that, it would cascade from there.
        
           | twobitshifter wrote:
           | A union would force these layoffs to be justified well beyond
           | what we see in these PR releases, however, the severance
           | packages offered are very good for non-unionized labor. It
           | makes me suspect that the loose association of programmers
           | has latent power even if it's not in a guild or union.
        
             | htrp wrote:
             | More like if you cheap out on severance.... no one will
             | ever come work for you without a significant comp premium
        
           | htag wrote:
           | In the days-of-old to gain a skill you needed an
           | apprenticeship. To gain an apprenticeship you can to become a
           | guild member. This created a moat, where only guild members
           | were highly skilled.
           | 
           | How do you purpose to market guild labor over non-guild
           | labor, especially at a time when anyone can earn a CS degree,
           | publish open source, and right to work laws pepper the
           | country.
        
             | survirtual wrote:
             | Guild-owned technology, created with human-aligned
             | intentions (as opposed to greed-aligned). Human-centric
             | tech is superior to capital-centric tech.
             | 
             | Open source is basically this in a naive and unorganized
             | way, especially when MIT licensed (a giant con in my
             | opinion). GNU does much better. But if there existed a
             | guild license connected to tech and patents that are must
             | haves, it would tip the balance.
             | 
             | The guild would offer objective security to a worker --
             | health insurance, income insurance, and legal backing, with
             | intentions aligned entirely with the worker. It provides a
             | behemoth aligned with maximizing the rights and income of a
             | worker. That would do a whole lot in attracting people to
             | join.
        
               | htag wrote:
               | What is this guild license, and how does it differ from
               | the current system of having private companies own
               | software licenses, tech patents, and trade secrets?
               | 
               | It sounds to me like you're just describing a tech
               | company.
        
               | survirtual wrote:
               | It is a tech company but it is owned by specialized,
               | skilled workers. It is a guild because tech workers are
               | professional artisans. Guilds are an organization of
               | skilled professionals which have quality certification
               | for work, often times integrated with legal frameworks in
               | a government.
               | 
               | Software needs to be elevated, credentialed, regulated,
               | and more respected. This is what a guild would enable.
               | But I think merging benefits of unions with the prestige
               | of a guild would provide some needed innovation in that
               | space.
               | 
               | Providing skilled professionals with an army of lawyers,
               | professional insurance, income guarantees, healthcare,
               | lead management, all with cooperative ownership, profit
               | sharing, etc is a drastically different incentive
               | structure than existing organizations.
        
           | allochthon wrote:
           | Over the last decade I've had a similar thought and hope. Or
           | at least the idea of working for an employee-owned and
           | directed tech business (maybe on the model of REI?). Curious
           | whether anyone knows of any successes in this area with
           | respect to the tech industry?
        
         | expazl wrote:
         | "We're loosing money on every sale, how will we ever survive?"
         | 
         | "Don't worry, we'll make up for it in volume"
        
         | PragmaticPulp wrote:
         | Profit is what matters, not revenue. You can't look at revenue
         | numbers alone.
         | 
         | Regardless, you shouldn't assume that any company's first
         | priority is to continue employing and paying everyone. A
         | business is a business, and the employees are hired to do a
         | job. The working world makes a lot more sense when you accept
         | that jobs are jobs and not a benevolent source of guaranteed
         | income.
        
           | Frost1x wrote:
           | The problem is, once you adopt this mentality, there's often
           | pushback that you should also consider labor just like a
           | business acting in self interest. Labor should focus on their
           | profits (comp vs time vs benefits of concern) and optimize on
           | those, just as businesses do in terms of employment.
           | 
           | Labor should aim to do the least work possible for the most
           | compensation and only do what gets by. Labor too is not a
           | benevelot source of resources for a business to leverage,
           | it's a two way street.
           | 
           | Instead I often hear a mixture of inconsistent arguments
           | where after all moral and ethical lip service is exhausted,
           | we fall back to the "business is business and not charity
           | argument." That's fine (and I agree with it) but if we're
           | going to strip away morals and ethical obligations in society
           | from business, we need to do the same for labor and not
           | chastise labor with morals and ethics to prevent double
           | standards.
           | 
           | If we do want labor to follow moral and ethical social
           | obligations that aren't focused on pure self interest at all
           | times, then we should also talk about how businesses should
           | also have some sort of loyalty and societal obligations as
           | well.
           | 
           | We sort of need to pick one option, not pick and choose a
           | mixture that benefits business entities above all else. Not
           | that this specific post makes any such claims.
        
             | zajio1am wrote:
             | I would say that both sides have social obligations to
             | fulfill their part of a contract according to their best
             | effort while the contract is active, but also both sides
             | are free to change / terminate contract (with respect to
             | contract terms and laws) - both employer doing layoffs, or
             | employee asking for raise or leaving the job.
        
               | coldpie wrote:
               | The equation isn't equal, though. A company losing an
               | employee has a very different impact on that company than
               | an employee losing their employment has on that employee.
        
             | PragmaticPulp wrote:
             | > The problem is, once you adopt this mentality, there's
             | often pushback that you should also consider labor just
             | like a business acting in self interest. Labor should focus
             | on their profits (comp vs time vs benefits of concern) and
             | optimize on those, just as businesses do in terms of
             | employment.
             | 
             | As someone who has managed a lot of tech teams over the
             | years across multiple companies and including remote teams
             | in different countries, I can confidently say that people
             | already act exactly like this.
             | 
             | > Labor should aim to do the least work possible for the
             | most compensation and only do what gets by. Labor too is
             | not a benevelot source of resources for a business to
             | leverage, it's a two way street.
             | 
             | This is how most people operate, especially in the tech
             | world in recent years. Usually when people go above and
             | beyond, it's for promotion and advancement opportunities or
             | to build their resume to move to another job.
             | 
             | The thing is, if either side takes these positions too far
             | then the other side is going to want to cut ties. A company
             | doing a 6% layoff into an obvious global downturn isn't
             | exactly unreasonable. An employee who actively tries to do
             | as little as possible and requires more management
             | oversight than their peers is being unreasonable, though,
             | and will find themselves at the top of the list for layoffs
             | (with good reason).
             | 
             | Neither companies nor employees should be adopting extreme
             | positions. I don't see Spotify doing anything unreasonable
             | here.
        
           | fleddr wrote:
           | Yes, that is a core truth, but doesn't excuse the current
           | behavior. There's a lot of middle ground between "employment
           | for life" and "you're a disposable object".
           | 
           | For sure you can treat employees as disposable objects, but
           | this zero trust situation surely will backlash in one way or
           | another.
        
         | dunreith wrote:
         | All of these layoff announcements, regardless of high profits
         | or otherwise, are quickly eroding any sense of loyalty I have
         | toward my company - and it should do the same for all of the
         | tech workers out there.
         | 
         | You have to do what's best for you and those that you support.
         | Do not accept anything less; your company certainly will not.
         | 
         | Until it becomes apparent that the constant turnover of tech
         | workers hits the bottom line, these companies will do less than
         | nothing to make things better for their employees.
        
       | gadders wrote:
       | I got asked to do a survey when I opened the Spotify app last
       | week. All the questions were of a "What would you do if this
       | price rise happened?" and most of the varieties had the family
       | plan going to PS20.99.
       | 
       | I don't know what they are smoking to think that they're worth
       | more than a Netflix subscription. Video > audio. If they put the
       | family plan price up I'll cancel it and use Prime Music or
       | something.
        
         | wittycardio wrote:
         | [dead]
        
         | wefarrell wrote:
         | Netflix doesn't have all films and shows whereas Spotify has
         | pretty much every song. For video I have Netflix, Amazon Prime,
         | HBO, Disney plus and Hulu but for music I only have Spotify.
        
         | rchaud wrote:
         | > _Video > audio_
         | 
         | This is why they're now offering video and podcasts. They want
         | to be valued the same way Netflix and YouTube are, and they
         | can't do it with an audio-only offering.
        
         | plaidfuji wrote:
         | > video > audio
         | 
         | Agreed, but keep in mind this is "access to virtually all
         | available audio" vs "access to one particular channel/library
         | of video"
        
         | lucsky wrote:
         | > I don't know what they are smoking to think that they're
         | worth more than a Netflix subscription. Video > audio.
         | 
         | Hard disagree, video streaming platforms are a gigantic hot
         | mess where movies and shows _constantly_ appear and expire, you
         | never know where to look, if something is available or not
         | anymore or for how long.
         | 
         | Spotify and friends are constantly _growing_ libraries, where
         | everything is available, at all time, always (modulo the
         | expected lawyer temper tantrums here and there). It boggles my
         | mind how people can feel so entitled that they wouldn 't accept
         | paying a bit more for _sixty million_ tracks available
         | everywhere every time all the time.
         | 
         | Spotify is a shit company, with garbage mobile and desktop
         | clients, but the service is absolutely insanely cheap for what
         | it is, I personally would gladly pay double and still be happy
         | about it.
         | 
         | They are worth way more than a stupid Netflix subscription in
         | my book. Vastly.
        
         | jillesvangurp wrote:
         | Netflix has been doing the same thing by cracking down on
         | sharing of accounts between family members not living in the
         | same house, etc. I'd probably sooner cancel Netflix or Amazon
         | Prime than Spotify. I've actually been thinking about that
         | lately because they seem to be putting out less nice content
         | lately.
         | 
         | I might just start subscription hopping for a while. Binge on a
         | bunch of HBO things. Cancel that, move on to Prime, pay for a
         | few months of Netflix, Apple TV, and so on. The issue is that
         | none of them have enough quality content to keep me there
         | permanently and they all have some content that is at least
         | tempting. There are a couple of shows per year on each that I
         | really enjoy and then just a lot of filler content that I don't
         | really care as much about. I actually watch more free content
         | on Youtube at this point then Netflix.
         | 
         | There are a few alternatives to Spotify. I'd say Prime Music is
         | probably the least polished of them. AWS for all their success
         | as a retailer just never figured out how to do decent UX. Prime
         | video is pretty bad for example.
         | 
         | I've heard good things about Tidal and I kind of like their
         | focus on artist revenue. But for now, I'm pretty happy with
         | Spotify and the switching is not really worth the trouble to
         | me. In terms of cost most of these things are pretty close
         | together.
        
           | halgir wrote:
           | > I might just start subscription hopping for a while.
           | 
           | Aren't you worried about how this will look on your resume?
        
             | imchillyb wrote:
             | > I might just start subscription hopping for a while.
             | 
             | >> Aren't you worried about how this will look on your
             | resume? @halgir
             | 
             | You jest, but this type of censorship is coming to a
             | business near you in the very-near future.
        
           | imchillyb wrote:
           | When Spotify threatened to cancel my account for sharing with
           | my sister, I cancelled Spotify instead.
           | 
           | Spotify removed password sharing first.
        
         | soupfordummies wrote:
         | I get what you're saying but I also want to clarify that an
         | equivalent analogy would be if Netflix had nearly EVERY film/TV
         | show that was ever released.
        
         | orra wrote:
         | > I don't know what they are smoking to think that they're
         | worth more than a Netflix subscription
         | 
         | Don't worry, I am sure Netflix will put up their prices again.
        
         | twobitshifter wrote:
         | SiriusXM costs from $18-$23/month for ad free streaming. That's
         | channels instead of on demand playback. The prices that are
         | being asked for make me wish we just had a better successor to
         | FM radio.
        
         | halgir wrote:
         | > Video > audio
         | 
         | I get what you mean, but I wouldn't accept that as a universal
         | truth. I spend considerably more time listening to music on
         | Spotify than I do watching video on Netflix. The content I
         | consume on Netflix may have cost more to produce, but the
         | content I consume on Spotify gives me subjectively more value.
        
           | SketchySeaBeast wrote:
           | I agree with you - music keeps me entertained all day, it has
           | far more value to me. But isn't there an argument to be made
           | that the infrastructure requirements for video is huge
           | compared to music? The requirements to store and stream
           | enough 4k video all day every day to satisfy millions of
           | users is monstrous and that has to factor into the cost. I
           | wouldn't expect streaming audio to be nearly that costly.
        
             | halgir wrote:
             | The only reason music streaming is so cheap is because it's
             | a commodity. There's several multi-billion dollar
             | corporations all competing with largely identical products.
             | There's not much else than price to compete on.
             | 
             | Video services compete on exclusive content, so they can
             | make subjective value considerations around how valuable
             | certain content is to certain groups.
        
               | ghaff wrote:
               | And, related is that there's a royalty/copyright
               | structure in music that means those multi-billion dollar
               | companies can stream almost anything they want for a
               | known low dollar amount.
               | 
               | There's also an almost infinite supply of good music--
               | past and present--out there. There just isn't a lot of
               | incentive for most audio streaming services to invest in
               | exclusive content--the odd podcast notwithstanding.
        
           | ghaff wrote:
           | If streaming got too expensive, I'd just buy more music now
           | and then. I managed fine before streaming and I'd manage
           | without it. But then I have a big library.
        
         | Terretta wrote:
         | Apple One which includes Apple Music, family app sharing,
         | family storage, and family privacy (essentially TOR for
         | everyday browsing, except through a privacy preserving tango
         | between Apple and CloudFlare) is a surprisingly good value
         | relative to the standalone music offerings.
         | 
         | https://www.apple.com/apple-one/
         | 
         | Family is $22.95 a month, with 5 other people:
         | 
         | - Apple Music
         | 
         | - Apple TV+
         | 
         | - Apple Arcade
         | 
         | - iCloud+ (with photos and video sharing, email/cal hosting
         | with family domain name, hide my email, private browsing)
        
           | rxyz wrote:
           | Apple Music is very clunky, much worse experience than
           | spotify. I tried twice to switch. I would recommend paying a
           | dollar for icloud+ and ignoring the rest.
        
             | Terretta wrote:
             | One is for people who like collecting music and discovering
             | things you wouldn't have discovered. The other is for
             | people who like radio, and hearing more things like the
             | things they already like.
             | 
             | They're only superficially the same, in fact they're wildly
             | different. Each will be a "worse experience" if your
             | preferred experience is the other.
        
         | canucklady wrote:
         | Spotify is dumping tons of resources into live streaming video
         | podcasts, I guess they heard "people pay for videos" and didn't
         | realize the video had to be good
        
       | dataengineer56 wrote:
       | The Spotify app constantly frustrates me and I miss the old
       | Google Play Music app.
       | 
       | - I listened to 5 minutes of one episode of a podcast once,
       | decided it wasn't for me and stopped, but ever since then I have
       | an entire pane on my homepage dedicated to my apparent love for
       | that podcast.
       | 
       | - The first 4 sections of the homepage recommend me exactly the
       | same things - I have the last 6 albums I listened to at the top,
       | then "Jump back in", then "Recently played" and then "Recommended
       | for today". There's no "here's some stuff you haven't listened to
       | lately". I regularly enjoy an album, burn myself out on it
       | (because it's always presented to me), don't listen to it for a
       | week and then completely forget about it because Spotify never
       | mentions it again.
       | 
       | - The queuing functionality is horrible. There's way to add a new
       | album to the end of the current queue. That means I have to
       | consciously realise that I'm listening to the last song of an
       | album and then queue up what I want to listen to next. It
       | regularly gets confused especially if I connect it to a Bluetooth
       | device mid-album, and will sometime decide to truncate my queue,
       | chopping off the last few songs of an album or repeating a middle
       | few songs that I've already listened to.
       | 
       | How can such a simple concept (listen to music) get so many
       | basics so wrong and have such glaring bugs?
        
         | jerpint wrote:
         | The most frustrating for me is the way the "offline" feature
         | works. On my android, even though I had downloaded
         | songs/podcasts/etc. I had to dig in settings and set it
         | explicitly to offline mode to enable offline playback.
         | 
         | Another grievance: I love music and podcasts and use Spotify
         | for both. It would be great to have a podcast tab and a music
         | tab. Instead, if you switch from one to the other, you'll have
         | to dig out the previous episode you were listening to. Very
         | user unfriendly
        
           | MonkeyMalarky wrote:
           | The whole offline / no data experience is absolutely terrible
           | if you live anywhere like Canada where mobile data rates are
           | small and expensive. The #1 complaint I've heard about
           | Spotify for years is "I set it to not download music on data
           | then didn't notice I was listening to a new playlist and now
           | I'm out of data till next month". Also taking public transit
           | like a subway without cell service was a pain. Hold on, let
           | me open the settings in advance and flip the offline switch
           | so I can keep listening to music on my commute. Ugh.
        
           | jamil7 wrote:
           | Offline is also weird on iOS, you often have to turn on
           | airplane mode to get it into its offline state reliably.
        
           | disruptiveink wrote:
           | Don't forget the part that you now have to "love" a song or
           | an album in order to download it because there's no "Add to
           | Library" anymore, completely ruining the concept of "likes".
           | How would I know if I like something or not if I have to say
           | I "love" it in order to download it so I can listen to it
           | later? Do I really "love" every single song of an album or
           | was I just forced to say so in order to download the whole
           | album? There is no possible way you're getting the correct
           | data points out of me like this.
           | 
           | There's three things I want out of Spotify:
           | 
           | * Browse the albums of a particular artist and play it - this
           | is becoming harder and harder;
           | 
           | * Find and play one song in particular by title - this is the
           | only thing Spotify still does right;
           | 
           | * Download an album / playlist and be able to listen to it
           | later on regardless of my internet connection status -
           | besides the requirement to "love" it stupidity, the UI just
           | hangs until it timeouts if you have a spotty connection. If
           | you have the content, just display and play it! It's actually
           | slightly better now when you have no connection, a while ago,
           | if you were on a plane in Airplane Mode, it would hang for a
           | few seconds "loading" until it gave up and displayed the
           | album art it had downloaded - why?!
           | 
           | I just want Winamp with a search engine and a downloader
           | built in. Is that really so hard? Is Electron really adding
           | any value here, or just making problems far harder to solve
           | than they should be across every single platform?
        
             | nikole9696 wrote:
             | "Browse the albums of a particular artist and play it -
             | this is becoming harder and harder"
             | 
             | So much agreement here - of the most annoying things to me
             | is that I can't just click on an artist and have an easy
             | way to list every song by that artist.
        
         | conradfr wrote:
         | I use Deezer instead of Spotify, I don't know if it's better or
         | worse, but what I can tell you is that I miss Google Play Music
         | everyday.
        
           | Aisen8010 wrote:
           | Deezer has a lot of interface problems too.
           | 
           | I think that Deezer is better because there is a button to
           | 'don't recommend this track/artist'. I can filter the things
           | that I dislike.
           | 
           | Another positive thing about Deezer is that it shows less
           | popups and notifications than Spotify.
        
         | fleddr wrote:
         | "How can such a simple concept (listen to music) get so many
         | basics so wrong and have such glaring bugs?"
         | 
         | Spotify internally has a model where they have a large number
         | of small teams where each is responsible for only a tiny part
         | of the experience. Possibly this leads to a lack of a coherent
         | experience. The other factor may be the constant
         | experimentation.
         | 
         | Frankly, 20-30 year old media players were better. So what the
         | point of it all is...I have no idea.
         | 
         | Quite similar experience with the Netflix app where it seems
         | every single day I have to wonder where they put my currently
         | watching series.
         | 
         | Ironically, we look up to these companies for their engineering
         | culture. We really shouldn't. It's a hot mess. Toy tech. Deeply
         | unserious about quality and customers.
        
           | rpep wrote:
           | The most frustrating one for me is that saving an album
           | doesn't add the Artist to your artists list in your Library.
        
             | Slow_Hand wrote:
             | You have to 'follow' the artist by going to their profile
             | and clicking 'follow'. I much prefer this functionality
             | because liking an album or a song does not mean I want to
             | be exposed to all new music by the artist.
        
           | zajio1am wrote:
           | > Frankly, 20-30 year old media players were better. So what
           | the point of it all is...I have no idea.
           | 
           | I would say that Spotify does not compete with traditional
           | media players, it competes with radio.
           | 
           | If i want to listen to my favorite songs, there is no reason
           | to use Spotify for that. But if i want something different-
           | but-similar and i do not really know what, because i am not
           | very interested in music, then discoverability of new music
           | by Spotify is game-changing.
        
             | xiwenc wrote:
             | Spotify should serve both audiences: consistency and
             | discover new ones.
             | 
             | I think Apple Music got it right. I like how you can start
             | a radio of any song. Or just play your own favorites.
        
               | TingPing wrote:
               | Spotify has always had "Song Radio".
        
               | calebh wrote:
               | For me song radio simply plays songs that I've already
               | listened to but are similar to the current song.
               | Completely useless for discovering new music.
        
           | dataengineer56 wrote:
           | The constant moving of the Netflix "currently watching" pane
           | is a huge annoyance for me, especially because it looks the
           | same as every other pane ("horror films", "British comedy"
           | etc). My grandma can't figure it out, she needs to be able to
           | press the same buttons every time she goes on the app and
           | Netflix doesn't let her do that.
        
             | fleddr wrote:
             | Not even episode syncing works (for me). I clearly finished
             | watching an episode yet regularly on another device the
             | next episode would be the one I already watched. Just one
             | of many basic things that doesn't work.
             | 
             | I forgot to add that not only will they change "currently
             | playing" every 3 secs, also the cover art of each series
             | changes, as an A/B test. So if you use that as a visual
             | confirmation, well tough luck.
             | 
             | In the case of Netflix, there's a reason for all of this.
             | They don't really want you to go and sniff around the
             | catalog in easy ways. You might discover its not great.
             | Best to throw a bunch of random stuff in your face to give
             | you the illusion of a fabulously rich and "dynamic"
             | experience.
             | 
             | The distraction UX of Netflix is intentional. In the case
             | of Spotify it's mostly incompetence.
        
             | MandieD wrote:
             | "She needs to be able to press the same buttons every time
             | she goes on that app and [insert app name here] doesn't let
             | her do that" must sum up at least 90% of user problems.
        
           | bfeynman wrote:
           | Anecdotally I disagree. I think I have a pretty eclectic
           | taste, and spotify has helped me discover tons of new songs,
           | but also still keeps my daily mixes coherent. I find myself
           | listening to their autogenerated ones most of the time since
           | they are very easy to craft and extend.
        
           | pc86 wrote:
           | > _Spotify internally has a model where they have a large
           | number of small teams where each is responsible for only a
           | tiny part of the experience. Possibly this leads to a lack of
           | a coherent experience._
           | 
           | Which is particularly surprising since they have multiple
           | teams of highly compensated product people who are supposed
           | to be guiding the overall product direction and preventing
           | just that kind of incoherence.
        
         | randomifcpfan wrote:
         | Google Play Music was designed in a pre-streaming world, when
         | albums were much more popular.
         | 
         | Unfortunately, very few people use streaming services to listen
         | to albums.
         | 
         | It is something of a self-fulfilling prophecy, but given the
         | minuscule usage of albums by users, it's not worth Spotify's
         | time to optimize the album playback experience. (Same goes for
         | Classical music.)
         | 
         | Your problem with a static, duplicate list of suggested music
         | sounds like a bug. Somehow Spotify's recommendation algorithm
         | has run out of ideas of what to show you, so it just shows you
         | the same thing several times.
        
         | hef19898 wrote:
         | +1 on Google Music, I really miss that.
        
         | hbn wrote:
         | There are plenty of dedicated podcast apps that offer a better
         | experience with no or very little algorithmic recommendation
         | system.
         | 
         | I've used PocketCasts for years and it's been perfect and doing
         | exactly what it needs to do and no more. The main page is just
         | a grid of podcasts I'm subscribed to, and I can go into a list
         | of all unplayed episodes of all my podcasts sorted
         | chronologically. There is a "discover" tab that has
         | featured/trending podcasts, but I never touch that other than
         | to use the search (which doubles as an entry field where you
         | can paste an RSS link to subscribe that way)
        
         | traveler01 wrote:
         | It's algorithm is really dumb. That's why these companies need
         | to stop with these so called "algorithms", we should only
         | select the genres of music we like and our front page should be
         | a reflection of it.
         | 
         | I still remember when my girlfriend searched for a fart noise
         | podcast as a joke and then I kept getting suggestions based on
         | it for weeks.
        
         | aequitas wrote:
         | I just went back to Spotify after trying a 6 month Apple Music
         | trial for only 3 weeks. Apple Music is even worse. First of all
         | they don't support handoff between my mac and iPhone. A feature
         | that Spotify supports a lot better. There is no way to go back
         | to the previous song. The mac app constantly fails to resume
         | playing a song after a short while paused. And sometimes I have
         | to go to a song or playlist again to get it to start playing
         | music again. Searching for song has horrible ux. I haven't
         | found a way to get to the playlist I'm currently on.
         | 
         | While spotify has its issues I'm now a lot more happy with it
         | after trying an alternative.
        
         | [deleted]
        
         | xenolithis wrote:
         | Songza(https://en.wikipedia.org/wiki/Songza) really brought a
         | lot of value to GPM. RIP
        
         | silveroriole wrote:
         | I think the most amazing mistake Spotify made was that recently
         | all private playlists suddenly became public, because they
         | changed the meaning of private and public to introduce some
         | weird third level of privacy. I now have no idea what the
         | privacy settings do.
         | 
         | Second most amazing was when they made the scrollbar literally
         | two pixels wide and therefore unusable.
         | 
         | It's not even that these are huge errors but it just makes you
         | wonder who drove those change and why? What on Earth are their
         | teams up to when they're prioritising those kinds of changes?
        
           | mikhael28 wrote:
           | It's so they could sell your music preferences. You got got.
        
           | EastSmith wrote:
           | WTF? I just checked all my private playlist are now public!
           | WTF Spotify?!?
        
             | silveroriole wrote:
             | They say that "public" means what "private" used to mean,
             | "added to profile" means what "public" used to mean, and
             | "private" now means that people can't see the playlist at
             | all even if they have a link to it. But it's completely
             | unclear which setting controls whether someone can search
             | for the playlist by name and find it. I found out about
             | this public/private change because I somehow got a
             | subscriber to a playlist I'd thought was completely
             | private, so I'm sure the previously private playlists
             | actually did become more public without my permission...
        
             | mikhael28 wrote:
             | They probably made a good chunk selling your now public
             | playlist music preferences to advertisers.
        
             | puszczyk wrote:
             | WTF!!! Same here, the playlists are now public
        
         | hadrien01 wrote:
         | For your second point, there's a Time Capsule playlist with
         | content you haven't recently listened to.
        
           | dataengineer56 wrote:
           | I listen to albums, not songs, and looking at that playlist
           | then there's a lot of stuff there that I've never listened to
           | and have no desire to listen to. Spotify seems exceptionally
           | bad at metal music and says "oh you listen to prog metal?
           | Then you're definitely going to love us constantly
           | recommending you the exact same Korn, Slipknot and blink-182
           | albums".
        
         | agluszak wrote:
         | > The queuing functionality is horrible. There's way to add a
         | new album to the end of the current queue.
         | 
         | That's precisely why I chose Tidal over Spotify when GPM died
        
         | xtracto wrote:
         | I am just waiting for the personal I formation train to get to
         | include my listening history and like/dislike behaviour.
         | 
         | There should be an XML/JSON standard to store, download and
         | share that information. I've got a listening history in
         | last.fm, another in spotify, another in Tidal an finally in
         | youtube. I should be able to use them together in any platform.
         | My listening habits is also my personal information.
        
         | InCityDreams wrote:
         | And yet, people still pay for crap experiences. For me, even a
         | slight annoyance means I'm out, with a quick email to 'contact
         | us' explaining exactly why. Never heard back from several and
         | they dont receive my $$ anymore.
        
         | bitexploder wrote:
         | You still cant search for a song in your playlists only either.
        
         | nvarsj wrote:
         | After using plexamp for the last year, it just reinforced my
         | impression that the UX of Spotify is cosmically bad. Plexamp
         | feels a lot like winamp, it is a nice pared down experience
         | that just works and is fast.
         | 
         | But I guess I'm just one data point. Spotify has enough users
         | that they have no incentive to make any kind of radical change.
        
         | unglaublich wrote:
         | Podcasts are interesting for Spotify because they keep the
         | listener attached to the service while their (royalty and
         | license) costs are minimal. Just like they inject all kinds of
         | cheap music from unknown artists in your recommendations.
        
       | honeybadger1 wrote:
       | Another company turning off the peacocking and turning on the
       | dominant business practices culture that makes them great to
       | begin with.
        
       | gruez wrote:
       | more discussion (80 comments as of this posting) here:
       | https://news.ycombinator.com/item?id=34488121
        
       | polygotdomain wrote:
       | I think we've gotten into this weird spot where tech companies
       | are almost goading each other into layoffs. I don't doubt that
       | there was some overexpansion during COVID, but it seems to have
       | shifted. Tech companies have signaled to the market that staffing
       | numbers were too high (regardless of profitability), and that
       | investors want to see them brought back down. These layoffs don't
       | really seem to be an indication of company strength, and the
       | golden parachutes that a lot of these companies are offering
       | can't really be that helpful to the bottom line (5mo + unused PTO
       | + benefits in this case for Spotify). It's just playing things up
       | for a certain audience while the general public is largely
       | distracted.
        
         | lamontcg wrote:
         | > These layoffs don't really seem to be an indication of
         | company strength
         | 
         | They never were.
         | 
         | I'm old and completely fucking puzzled by this assertion from
         | Millennials that strong companies wouldn't do layoffs.
        
         | grey-area wrote:
         | This is a bubble imploding, this is serious.
         | 
         | The value of money has shifted for good after a decade of
         | excess, there is rampant inflation and there is a recession
         | incoming.
         | 
         | These companies have seen the writing on the wall and are
         | making the first of many layoffs to address this. This started
         | last year and will last another year at least, possibly a few
         | years.
         | 
         | Apparently most eases of this sore are still in denial about it
         | but the reasons are real and presssing.
         | 
         | The other thing this paradigm shift in rates impacts of course
         | is profitless startups which are now worth zero if they can't
         | turn a profit within a year. Those that can't will go bust and
         | lay off all employees, thus making the recession deeper.
        
           | SpeedilyDamage wrote:
           | My experiences around bubbles popping were substantially more
           | violent and sudden.
           | 
           | This feels a lot more like a normal ebb. I doubt this layoff
           | trend continues past June, and other companies are still
           | hiring.
        
           | type-r wrote:
           | Why do you say it has shifted "for good"? The Fed itself
           | plans to bring interest rates back down actually fairly
           | quickly [0], following a half-year of decreasing inflation
           | rates [1].
           | 
           | [0] https://www.federalreserve.gov/monetarypolicy/fomcprojtab
           | l20...
           | 
           | [1] https://www.statista.com/statistics/273418/unadjusted-
           | monthl...
        
             | grey-area wrote:
             | The Fed is infamous for being wrong, both in projections
             | and in reactions.
             | 
             | In fact a good case could be made for their policy mistakes
             | leading them to this dilemma where they must choose between
             | causing inflation or recession.
        
           | GaryNumanVevo wrote:
           | Okay but if that was true, these companies wouldn't also be
           | issuing massive stock buybacks at the same time. It's normal
           | ebb to someone with decades of time in the industry.
        
         | cbm-vic-20 wrote:
         | If not goading, they're at least providing some cover for each
         | other. If a company is looking to cut some percentage of staff,
         | it's best to tuck that into the news cycle when many of your
         | peers are doing the same thing.
        
         | tootie wrote:
         | I think everyone trying to attribute some kind of 4D chess
         | maneuvers to these actions is massively overestimating tech
         | CEOs.
        
           | ditonal wrote:
           | 100%
           | 
           | People regurgitate "they overhired during COVID and now
           | they're making the prudent decision to cut costs"
           | 
           | The first part of the sentence implies poor decision making
           | by weak leaders, so they lose the benefit of the doubt
           | they're capable of prudent decisions.
           | 
           | You can't have it both ways - they made a stupid copycat
           | decision to overhire but now layoffs are smart and
           | thoughtful.
           | 
           | Occam's razor - they made stupid copycat decisions both times
           | because in both cases execs act with a herd mentality.
           | 
           | I can't tell you the number of times the "leaders" of big
           | tech companies I've worked at cited decisions by researching
           | "peer companies". Management wants to self identify as
           | leaders but their decision making is literally based on
           | following the same decisions of other companies. They think
           | "if company A is doing it, it must be smart " the only
           | problem is that the peer companies they're copying are
           | themselves copying others.
           | 
           | All of these big tech companies have been overtaken by
           | professional politicians incapable of leading , with perhaps
           | Apple as the lone exception.
           | 
           | This is a golden time to launch a startup as the big
           | companies are putting their lunch money on the table and
           | cowering in fear.
        
           | ryandrake wrote:
           | A previous HN article called them "copycat layoffs"[1] which
           | makes the most sense. This is reactive panic from "leaders"
           | looking at each other for hints of what to do. A lot of
           | companies determine their product and engineering strategies
           | this way too. An exercise to the reader: Think about the
           | major decisions your company has made since you've joined...
           | How much of it was simply because competitors or bigger
           | example companies were also doing it?
           | 
           | EDIT: 1: https://news.ycombinator.com/item?id=34480314
        
           | pm90 wrote:
           | It's not a deliberate plan but more like FOMO. It seems
           | reasonable that execs hang out in similar social groups and
           | have similar viewpoints and predictions. Once a specific idea
           | has taken hold, company leadership has to either fight it or
           | give in.
        
       | EastSmith wrote:
       | Just learned that Spotify made all the private playlist (along
       | the playlist' label) public.
       | 
       | Someone posted about it the other thread for the same news.
       | 
       | I am shocked.
        
         | mh- wrote:
         | I don't see them visible on my profile, as of now, but my
         | profile also doesn't seem to be loading reliably.
         | 
         | I _can_ confirm that private playlists are accessible by their
         | link even in an incognito window. That _is_ surprising to me.
         | Has that always been the case?
         | 
         | edit: a quick google suggests that sharing by link is known to
         | allow access to anyone with the link.
        
       | saos wrote:
       | Reminder. You're disposable. I matter how secure you think you
       | may be.
        
       | morgango wrote:
       | At one point I tried to switch to Spotify for my podcast
       | consumption and quickly found it to be unusable as soon as I had
       | to travel.
       | 
       | They simply are not interested in the podcast consumption
       | features, like downloading the latest X episodes and having them
       | easily available offline. I hope they can figure out that podcast
       | episodes are not spoken word songs that go into playlists.
        
       | shantara wrote:
       | It feels like a pure bandwagon action, and not one that was well
       | thought out and came from the organization's needs.
       | 
       | To give one data point, I have a friend who just joined Spotify
       | and had his first working day last week.
        
       | TurkishPoptart wrote:
       | Why does it take 12k people to stream a song on my phone? I'm
       | being kind of sarcastic but kind of not.
        
       | amir734jj wrote:
       | I am a Spotify user for a long time. I don't understand this
       | layoff. They spend millions on podcasts deals ... I just want a
       | music app with good discovery option and offline listening mode.
       | Am I asking too much?
        
         | baguettefurnace wrote:
         | sounds like you'd like Pandora
        
       | hsavit1 wrote:
       | Another "I take full accountability for the moves that got us
       | here today." message from the CEO. What does this accountability
       | mean? Shouldn't he be fired and stripped of all benefits, just as
       | he did for those employees that got axed?
        
         | andsoitis wrote:
         | > What does this accountability mean?
         | 
         | It means to own up to one's mistake and fixing it. It isn't
         | that mysterious.
        
       | [deleted]
        
       | htrp wrote:
       | 50 million charge for 600 jobs, average of 83k for severance....
        
       | Taylor_OD wrote:
       | Weird wording for layoffs.
        
       | netheril96 wrote:
       | When I read the title "Spotify reducing employee base by about
       | 6%", I thought Spotify was reducing the base compensation of all
       | employees instead of laying people off. How wrong I was.
        
       | Dave3of5 wrote:
       | More doom and gloom. Last few years have been terrible.
        
         | nemo44x wrote:
         | Yeah we seem to have had hit our industry peak in November
         | 2021.
        
           | qikInNdOutReply wrote:
           | Strange memories on this nervous night in Palo Alto. Five
           | years later? Six? It seems like a lifetime, or at least a
           | Main Era--the kind of peak that never comes again. San
           | Francisco in the middle twenties was a very special time and
           | place to be a part of. Maybe it meant something. Maybe not,
           | in the long run . . . but no explanation, no mix of words or
           | music or memories can touch that sense of knowing that you
           | were there and alive in that corner of time and the world.
           | Whatever it meant. . . .
           | 
           | History is hard to know, because of all the hired bullshit,
           | but even without being sure of "history" it seems entirely
           | reasonable to think that every now and then the energy of a
           | whole generation comes to a head in a long fine flash, for
           | reasons that nobody really understands at the time--and which
           | never explain, in retrospect, what actually happened.
           | 
           | My central memory of that time seems to hang on one or five
           | or maybe forty nights--or very early mornings--when I left
           | the Fillmore half-crazy and, instead of going home, aimed the
           | big 650 Lightning across the Bay Bridge at a hundred miles an
           | hour wearing L. L. Bean shorts and a Butte sheepherder's
           | jacket . . . booming through the Treasure Island tunnel at
           | the lights of Oakland and Berkeley and Richmond, not quite
           | sure which turn-off to take when I got to the other end
           | (always stalling at the toll-gate, too twisted to find
           | neutral while I fumbled for change) . . . but being
           | absolutely certain that no matter which way I went I would
           | come to a place where people were just as high and wild as I
           | was: No doubt at all about that. . . .
           | 
           | There was madness in any direction, at any hour. If not
           | across the Bay, then up the Golden Gate or down 101 to Los
           | Altos or La Honda. . . . You could strike sparks anywhere.
           | There was a fantastic universal sense that whatever we were
           | doing was right, that we were winning. . . .
           | 
           | And that, I think, was the handle--that sense of inevitable
           | victory over the forces of Old and Evil. Not in any mean or
           | military sense; we didn't need that. Our energy would simply
           | prevail. There was no point in fighting--on our side or
           | theirs. We had all the momentum; we were riding the crest of
           | a high and beautiful wave. . . .
           | 
           | So now, less than five years later, you can go up on a steep
           | hill in Las Vegas and look West, and with the right kind of
           | eyes you can almost see the high-water mark--that place where
           | the wave finally broke and rolled back."
        
             | dbspin wrote:
             | Watched the Gimme Shelter documentary last night and it
             | made me wonder if, when Thompson wrote that piece, he
             | wasn't merely being allegorical. Perhaps he was also
             | referencing the Altamonte Speedway which is North West of
             | Vegas as the crow flies and where in a sense the 'sixties'
             | came to a very definite end.
        
         | mrweasel wrote:
         | There's still a ton of jobs out there, depending on where in
         | the world you're able to work. They might not be as exciting,
         | the companies aren't as well known, but they still pay fairly
         | well and it's stable.
         | 
         | I do feel bad for those who are losing their jobs, it's not
         | their fault. Many of the companies currently firing people
         | simply had too many employees to begin with. Daniel Elk even
         | admits it: "I was too ambitious in investing ahead of our
         | revenue growth".
        
           | nivenkos wrote:
           | It really depends where, outside the US pay is pretty
           | terrible usually.
           | 
           | In Europe for example, as a senior developer you get maybe
           | $70-90k in FAANG and big companies, and $50-70k in smaller
           | companies.
        
             | mrweasel wrote:
             | It's a little hard to compare across countries in Europe,
             | even within a small country. I'm in Denmark, but outside
             | Copenhagen. $90.000 isn't a terrible salary and $100.000 is
             | pretty doable for a senior developer, dev-ops or operation
             | person. You can go a bit higher in Copenhagen. That's not
             | for the FAANGs, that's for the companies that a desperately
             | looking for employees.
             | 
             | Other countries have much lower cost of living, so I don't
             | see the issue with saleries being lower in those countries.
             | 
             | Again very much depending on which country you're in, I'd
             | say that $50.000 is a starting salary, perhaps on the low-
             | end, for a developer fresh out of school.
        
           | danjac wrote:
           | What's weird is that _all_ of these CEOs are saying the same
           | thing:  "I hired too many folks a couple years ago, welp,
           | guess I was wrong".
           | 
           | You would think some companies hired too many, some hired too
           | few, others more or less just stayed the same. Instead we're
           | seeing this groupthink of these so-called geniuses of the
           | industry moving this way and that like a flock of sheep.
        
             | juve1996 wrote:
             | Those CEOs knew what they were doing and what they're doing
             | isn't wrong.
             | 
             | Our entire economy is built on short term gain and rewards
             | that. CEOs are worried about their quarterly numbers and
             | are doing layoffs to lessen the blow.
        
             | mvdwoord wrote:
             | It is almost as if the low interest rate stimulated
             | frivolous spending by investors..
        
           | [deleted]
        
       | noisy_boy wrote:
       | We just sort of came off a pandemic into what seems like another
       | pandemic.
        
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