More on Entrepreneurship/Creators

Sanjay Priyadarshi
3 years ago
A 19-year-old dropped out of college to build a $2,300,000,000 company in 2 years.
His success was unforeseeable.
2014 saw Facebook's $2.3 billion purchase of Oculus VR.
19-year-old Palmer Luckey founded Oculus. He quit journalism school. His parents worried about his college dropout.
Facebook bought Oculus VR in less than 2 years.
Palmer Luckey started Anduril Industries. Palmer has raised $385 million with Anduril.
The Oculus journey began in a trailer
Palmer Luckey, 19, owned the trailer.
Luckey had his trailer customized. The trailer had all six of Luckey's screens. In the trailer's remaining area, Luckey conducted hardware tests.
At 16, he became obsessed with virtual reality. Virtual reality was rare at the time.
Luckey didn't know about VR when he started.
Previously, he liked "portabilizing" mods. Hacking ancient game consoles into handhelds.
In his city, fewer portabilizers actively traded.
Luckey started "ModRetro" for other portabilizers. Luckey was exposed to VR headsets online.
Luckey:
“Man, ModRetro days were the best.”
Palmer Luckey used VR headsets for three years. His design had 50 prototypes.
Luckey used to work at the Long Beach Sailing Center for minimum salary, servicing diesel engines and cleaning boats.
Luckey worked in a USC Institute for Creative Technologies mixed reality lab in July 2011. (ICT).
Luckey cleaned the lab, did reports, and helped other students with VR projects.
Luckey's lab job was dull.
Luckey chose to work in the lab because he wanted to engage with like-minded folks.
By 2012, Luckey had a prototype he hoped to share globally. He made cheaper headsets than others.
Luckey wanted to sell an easy-to-assemble virtual reality kit on Kickstarter.
He realized he needed a corporation to do these sales legally. He started looking for names. "Virtuality," "virtual," and "VR" are all taken.
Hence, Oculus.
If Luckey sold a hundred prototypes, he would be thrilled since it would boost his future possibilities.
John Carmack, legendary game designer
Carmack has liked sci-fi and fantasy since infancy.
Carmack loved imagining intricate gaming worlds.
His interest in programming and computer science grew with age.
He liked graphics. He liked how mismatching 0 and 1 might create new colors and visuals.
Carmack played computer games as a teen. He created Shadowforge in high school.
He founded Id software in 1991. When Carmack created id software, console games were the best-sellers.
Old computer games have weak graphics. John Carmack and id software developed "adaptive tile refresh."
This technique smoothed PC game scrolling. id software launched 3-D, Quake, and Doom using "adaptive tile refresh."
These games made John Carmack a gaming star. Later, he sold Id software to ZeniMax Media.
How Palmer Luckey met Carmack
In 2011, Carmack was thinking a lot about 3-D space and virtual reality.
He was underwhelmed by the greatest HMD on the market. Because of their flimsiness and latency.
His disappointment was partly due to the view (FOV). Best HMD had 40-degree field of view.
Poor. The best VR headset is useless with a 40-degree FOV.
Carmack intended to show the press Doom 3 in VR. He explored VR headsets and internet groups for this reason.
Carmack identified a VR enthusiast in the comments section of "LEEP on the Cheap." "PalmerTech" was the name.
Carmack approached PalmerTech about his prototype. He told Luckey about his VR demos, so he wanted to see his prototype.
Carmack got a Rift prototype. Here's his May 17 tweet.
John Carmack tweeted an evaluation of the Luckey prototype.
Dan Newell, a Valve engineer, and Mick Hocking, a Sony senior director, pre-ordered Oculus Rift prototypes with Carmack's help.
Everyone praised Luckey after Carmack demoed Rift.
Palmer Luckey received a job offer from Sony.
It was a full-time position at Sony Computer Europe.
He would run Sony’s R&D lab.
The salary would be $70k.
Who is Brendan Iribe?
Brendan Iribe started early with Startups. In 2004, he and Mike Antonov founded Scaleform.
Scaleform created high-performance middleware. This package allows 3D Flash games.
In 2011, Iribe sold Scaleform to Autodesk for $36 million.
How Brendan Iribe discovered Palmer Luckey.
Brendan Iribe's friend Laurent Scallie.
Laurent told Iribe about a potential opportunity.
Laurent promised Iribe VR will work this time. Laurent introduced Iribe to Luckey.
Iribe was doubtful after hearing Laurent's statements. He doubted Laurent's VR claims.
But since Laurent took the name John Carmack, Iribe thought he should look at Luckey Innovation. Iribe was hooked on virtual reality after reading Palmer Luckey stories.
He asked Scallie about Palmer Luckey.
Iribe convinced Luckey to start Oculus with him
First meeting between Palmer Luckey and Iribe.
The Iribe team wanted Luckey to feel comfortable.
Iribe sought to convince Luckey that launching a company was easy. Iribe told Luckey anyone could start a business.
Luckey told Iribe's staff he was homeschooled from childhood. Luckey took self-study courses.
Luckey had planned to launch a Kickstarter campaign and sell kits for his prototype. Many companies offered him jobs, nevertheless.
He's considering Sony's offer.
Iribe advised Luckey to stay independent and not join a firm. Iribe asked Luckey how he could raise his child better. No one sees your baby like you do?
Iribe's team pushed Luckey to stay independent and establish a software ecosystem around his device.
After conversing with Iribe, Luckey rejected every job offer and merger option.
Iribe convinced Luckey to provide an SDK for Oculus developers.
After a few months. Brendan Iribe co-founded Oculus with Palmer Luckey. Luckey trusted Iribe and his crew, so he started a corporation with him.
Crowdfunding
Brendan Iribe and Palmer Luckey launched a Kickstarter.
Gabe Newell endorsed Palmer's Kickstarter video.
Gabe Newell wants folks to trust Palmer Luckey since he's doing something fascinating and answering tough questions.
Mark Bolas and David Helgason backed Palmer Luckey's VR Kickstarter video.
Luckey introduced Oculus Rift during the Kickstarter campaign. He introduced virtual reality during press conferences.
Oculus' Kickstarter effort was a success. Palmer Luckey felt he could raise $250,000.
Oculus raised $2.4 million through Kickstarter. Palmer Luckey's virtual reality vision was well-received.
Mark Zuckerberg's Oculus discovery
Brendan Iribe and Palmer Luckey hired the right personnel after a successful Kickstarter campaign.
Oculus needs a lot of money for engineers and hardware. They needed investors' money.
Series A raised $16M.
Next, Andreessen Horowitz partner Brain Cho approached Iribe.
Cho told Iribe that Andreessen Horowitz could invest in Oculus Series B if the company solved motion sickness.
Mark Andreessen was Iribe's dream client.
Marc Andreessen and his partners gave Oculus $75 million.
Andreessen introduced Iribe to Zukerberg. Iribe and Zukerberg discussed the future of games and virtual reality by phone.
Facebook's Oculus demo
Iribe showed Zuckerberg Oculus.
Mark was hooked after using Oculus. The headset impressed him.
The whole Facebook crew who saw the demo said only one thing.
“Holy Crap!”
This surprised them all.
Mark Zuckerberg was impressed by the team's response. Mark Zuckerberg met the Oculus team five days after the demo.
First meeting Palmer Luckey.
Palmer Luckey is one of Mark's biggest supporters and loves Facebook.
Oculus Acquisition
Zuckerberg wanted Oculus.
Brendan Iribe had requested for $4 billion, but Mark wasn't interested.
Facebook bought Oculus for $2.3 billion after months of drama.
After selling his company, how does Palmer view money?
Palmer loves the freedom money gives him. Money frees him from small worries.
Money has allowed him to pursue things he wouldn't have otherwise.
“If I didn’t have money I wouldn’t have a collection of vintage military vehicles…You can have nice hobbies that keep you relaxed when you have money.”
He didn't start Oculus to generate money. His virtual reality passion spanned years.
He didn't have to lie about how virtual reality will transform everything until he needed funding.
The company's success was an unexpected bonus. He was merely passionate about a good cause.
After Oculus' $2.3 billion exit, what changed?
Palmer didn't mind being rich. He did similar things.
After Facebook bought Oculus, he moved to Silicon Valley and lived in a 12-person shared house due to high rents.
Palmer might have afforded a big mansion, but he prefers stability and doing things because he wants to, not because he has to.
“Taco Bell is never tasted so good as when you know you could afford to never eat taco bell again.”
Palmer's leadership shifted.
Palmer changed his leadership after selling Oculus.
When he launched his second company, he couldn't work on his passions.
“When you start a tech company you do it because you want to work on a technology, that is why you are interested in that space in the first place. As the company has grown, he has realized that if he is still doing optical design in the company it’s because he is being negligent about the hiring process.”
Once his startup grows, the founder's responsibilities shift. He must recruit better firm managers.
Recruiting talented people becomes the top priority. The founder must convince others of their influence.
A book that helped me write this:
The History of the Future: Oculus, Facebook, and the Revolution That Swept Virtual Reality — Blake Harris
*This post is a summary. Read the full article here.

Khoi Ho
3 years ago
After working at seven startups, here are the early-stage characteristics that contributed to profitability, unicorn status or successful acquisition.
I've worked in a People role at seven early-stage firms for over 15 years (I enjoy chasing a dream!). Few of the seven achieved profitability, including unicorn status or acquisition.
Did early-stage startups share anything? Was there a difference between winners and losers? YES.
I support founders and entrepreneurs building financially sustainable enterprises with a compelling cause. This isn't something everyone would do. A company's success demands more than guts. Founders drive startup success.
Six Qualities of Successful Startups
Successful startup founders either innately grasped the correlation between strong team engagement and a well-executed business model, or they knew how to ask and listen to others (executive coaches, other company leaders, the team itself) to learn about it.
Successful startups:
1. Co-founders agreed and got along personally.
Multi-founder startups are common. When co-founders agree on strategic decisions and are buddies, there's less friction and politics at work.
As a co-founder, ask your team if you're aligned. They'll explain.
I've seen C-level leaders harbor personal resentments over disagreements. A co-departure founder's caused volatile leadership and work disruptions that the team struggled to manage during and after.
2. Team stayed.
Successful startups have low turnover. Nobody is leaving. There may be a termination for performance, but other team members will have observed the issues and agreed with the decision.
You don't want organizational turnover of 30%+, with leaders citing performance issues but the team not believing them. This breeds suspicion.
Something is wrong if many employees leave voluntarily or involuntarily. You may hear about lack of empowerment, support, or toxic leadership in exit interviews and from the existing team. Intellectual capital loss and resource instability harm success.
3. Team momentum.
A successful startup's team is excited about its progress. Consistently achieving goals and having trackable performance metrics. Some describe this period of productivity as magical, with great talents joining the team and the right people in the right places. Increasing momentum.
I've also seen short-sighted decisions where only some departments, like sales and engineering, had goals. Lack of a unified goals system created silos and miscommunication. Some employees felt apathetic because they didn't know how they contributed to team goals.
4. Employees advanced in their careers.
Even if you haven't created career pathing or professional development programs, early-stage employees will grow and move into next-level roles. If you hire more experienced talent and leaders, expect them to mentor existing team members. Growing companies need good performers.
New talent shouldn't replace and discard existing talent. This creates animosity and makes existing employees feel unappreciated for their early contributions to the company.
5. The company lived its values.
Culture and identity are built on lived values. A company's values affect hiring, performance management, rewards, and other processes. Identify, practice, and believe in company values. Starting with team values instead of management or consultants helps achieve this. When a company's words and actions match, it builds trust.
When company values are beautifully displayed on a wall but few employees understand them, the opposite is true. If an employee can't name the company values, they're useless.
6. Communication was clear.
When necessary information is shared with the team, they feel included, trusted, and like owners. Transparency means employees have the needed information to do their jobs. Disclosure builds trust. The founders answer employees' questions honestly.
Information accessibility decreases office politics. Without transparency, even basic information is guarded and many decisions are made in secret. I've seen founders who don't share financial, board meeting, or compensation and equity information. The founders' lack of trust in the team wasn't surprising, so it was reciprocated.
The Choices
Finally. All six of the above traits (leadership alignment, minimal turnover, momentum, professional advancement, values, and transparency) were high in the profitable startups I've worked at, including unicorn status or acquisition.
I've seen these as the most common and constant signals of startup success or failure.
These characteristics are the product of founders' choices. These decisions lead to increased team engagement and business execution.
Here's something to consider for startup employees and want-to-bes. 90% of startups fail, despite the allure of building something new and gaining ownership. With the emotional and time investment in startup formation, look for startups with these traits to reduce your risk.
Both you and the startup will thrive in these workplaces.

Alex Mathers
2 years ago
How to Produce Enough for People to Not Neglect You
Internet's fantastic, right?
We've never had a better way to share our creativity.
I can now draw on my iPad and tweet or Instagram it to thousands. I may get some likes.
With such a great, free tool, you're not alone.
Millions more bright-eyed artists are sharing their work online.
The issue is getting innovative work noticed, not sharing it.
In a world where creators want attention, attention is valuable.
We build for attention.
Attention helps us establish a following, make money, get notoriety, and make a difference.
Most of us require attention to stay sane while creating wonderful things.
I know how hard it is to work hard and receive little views.
How do we receive more attention, more often, in a sea of talent?
Advertising and celebrity endorsements are options. These may work temporarily.
To attract true, organic, and long-term attention, you must create in high quality, high volume, and consistency.
Adapting Steve Martin's Be so amazing, they can't ignore you (with a mention to Dan Norris in his great book Create or Hate for the reminder)
Create a lot.
Eventually, your effort will gain traction.
Traction shows your work's influence.
Traction is when your product sells more. Traction is exponential user growth. Your work is shared more.
No matter how good your work is, it will always have minimal impact on the world.
Your work can eventually dent or puncture. Daily, people work to dent.
To achieve this tipping point, you must consistently produce exceptional work.
Expect traction after hundreds of outputs.
Dilbert creator Scott Adams says repetition persuades. If you don't stop, you can persuade practically anyone with anything.
Volume lends believability. So make more.
I worked as an illustrator for at least a year and a half without any recognition. After 150 illustrations on iStockphoto, my work started selling.
With 350 illustrations on iStock, I started getting decent client commissions.
Producing often will improve your craft and draw attention.
It's the only way to succeed. More creation means better results and greater attention.
Austin Kleon says you can improve your skill in relative anonymity before you become famous. Before obtaining traction, generate a lot and become excellent.
Most artists, even excellent ones, don't create consistently enough to get traction.
It may hurt. For makers who don't love and flow with their work, it's extremely difficult.
Your work must bring you to life.
To generate so much that others can't ignore you, decide what you'll accomplish every day (or most days).
Commit and be patient.
Prepare for zero-traction.
Anticipating this will help you persevere and create.
My online guru Grant Cardone says: Anything worth doing is worth doing every day.
Do.
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B Kean
2 years ago
To prove his point, Putin is prepared to add 200,000 more dead soldiers.
What does Ukraine's murderous craziness mean?
Vladimir Putin expressed his patience to Israeli Prime Minister Naftali Bennet. Thousands, even hundreds of thousands of young and middle-aged males in his country have no meaning to him.
During a meeting in March with Prime Minister Naftali Bennett of Israel, Mr. Putin admitted that the Ukrainians were tougher “than I was told,” according to two people familiar with the exchange. “This will probably be much more difficult than we thought. But the war is on their territory, not ours. We are a big country and we have patience (The Inside Story of a Catastrophe).”
Putin should explain to Russian mothers how patient he is with his invasion of Ukraine.
Putin is rich. Even while sanctions have certainly limited Putin's access to his fortune, he has access to everything in Russia. Unlimited wealth.
The Russian leader's infrastructure was designed with his whims in mind. Vladimir Putin is one of the wealthiest and most catered-to people alive. He's also all-powerful, as his lack of opposition shows. His incredible wealth and power have isolated him from average people so much that he doesn't mind turning lives upside down to prove a point.
For many, losing a Russian spouse or son is painful. Whether the soldier was a big breadwinner or unemployed, the loss of a male figure leaves many families bewildered and anxious. Putin, Russia's revered president, seems unfazed.
People who know Mr. Putin say he is ready to sacrifice untold lives and treasure for as long as it takes, and in a rare face-to-face meeting with the Americans last month the Russians wanted to deliver a stark message to President Biden: No matter how many Russian soldiers are killed or wounded on the battlefield, Russia will not give up (The Inside Story of a Catastrophe).
Imagine a country's leader publicly admitting a mistake he's made. Imagine getting Putin's undivided attention.
So, I underestimated Ukrainians. I can't allow them make me appear terrible, so I'll utilize as many drunken dopes as possible to cover up my error. They'll die fulfilled and heroic.
Russia's human resources are limited, but its willingness to cause suffering is not. How many Russian families must die before the curse is broken? If mass protests started tomorrow, Russia's authorities couldn't stop them.
When Moscovites faced down tanks in August 1991, the Gorbachev coup ended in three days. Even though few city residents showed up, everything collapsed. This wicked disaster won't require many Russians.
One NATO member is warning allies that Mr. Putin is ready to accept the deaths or injuries of as many as 300,000 Russian troops — roughly three times his estimated losses so far.
If 100,000 Russians have died in Ukraine and Putin doesn't mind another 200,000 dying, why don't these 200,000 ghosts stand up and save themselves? Putin plays the role of concerned and benevolent leader effectively, but things aren't going well for Russia.
What would 300,000 or more missing men signify for Russia's future? How many kids will have broken homes? How many families won't form, and what will the economy do?
Putin reportedly cared about his legacy. His place in Russian history Putin's invasion of Ukraine settled his legacy. He has single-handedly weakened and despaired Russia since the 1980s.
Putin will be viewed by sensible people as one of Russia's worst adversaries, but Russians will think he was fantastic despite Ukraine.
The more setbacks Mr. Putin endures on the battlefield, the more fears grow over how far he is willing to go. He has killed tens of thousands in Ukraine, leveled cities, and targeted civilians for maximum pain — obliterating hospitals, schools, and apartment buildings while cutting off power and water to millions before winter. Each time Ukrainian forces score a major blow against Russia, the bombing of their country intensifies. And Mr. Putin has repeatedly reminded the world that he can use anything at his disposal, including nuclear arms, to pursue his notion of victory.
How much death and damage will there be in Ukraine if Putin sends 200,000 more Russians to the front? It's scary, sad, and sick.
Monster.

Karo Wanner
3 years ago
This is how I started my Twitter account.
My 12-day results look good.
Twitter seemed for old people and politicians.
I thought the platform would die soon like Facebook.
The platform's growth stalled around 300m users between 2015 and 2019.
In 2020, Twitter grew and now has almost 400m users.
Niharikaa Kaur Sodhi built a business on Twitter while I was away, despite its low popularity.
When I read about the success of Twitter users in the past 2 years, I created an account and a 3-month strategy.
I'll see if it's worth starting Twitter in 2022.
Late or perfect? I'll update you. Track my Twitter growth. You can find me here.
My Twitter Strategy
My Twitter goal is to build a community and recruit members for Mindful Monday.
I believe mindfulness is the only way to solve problems like poverty, inequality, and the climate crisis.
The power of mindfulness is my mission.
Mindful Monday is your weekly reminder to live in the present moment. I send mindfulness tips every Monday.
My Twitter profile promotes Mindful Monday and encourages people to join.
What I paid attention to:
I designed a brand-appropriate header to promote Mindful Monday.
Choose a profile picture. People want to know who you are.
I added my name as I do on Medium, Instagram, and emails. To stand out and be easily recognized, add an emoji if appropriate. Add what you want to be known for, such as Health Coach, Writer, or Newsletter.
People follow successful, trustworthy people. Describe any results you have. This could be views, followers, subscribers, or major news outlets. Create!
Tell readers what they'll get by following you. Can you help?
Add CTA to your profile. Your Twitter account's purpose. Give instructions. I placed my sign-up link next to the CTA to promote Mindful Monday. Josh Spector recommended this. (Thanks! Bonus tip: If you don't want the category to show in your profile, e.g. Entrepreneur, go to edit profile, edit professional profile, and choose 'Other'
Here's my Twitter:
I'm no expert, but I tried. Please share any additional Twitter tips and suggestions in the comments.
To hide your Revue newsletter subscriber count:
Join Revue. Select 'Hide Subscriber Count' in Account settings > Settings > Subscriber Count. Voila!
How frequently should you tweet?
1 to 20 Tweets per day, but consistency is key.
Stick to a daily tweet limit. Start with less and be consistent than the opposite.
I tweet 3 times per day. That's my comfort zone. Larger accounts tweet 5–7 times daily.
Do what works for you and that is the right amount.
Twitter is a long-term game, so plan your tweets for a year.
How to Batch Your Tweets?
Sunday batchs.
Sunday evenings take me 1.5 hours to create all my tweets for the week.
Use a word document and write down your posts. Podcasts, books, my own articles inspire me.
When I have a good idea or see a catchy Tweet, I take a screenshot.
To not copy but adapt.
Two pillars support my content:
(90% ~ 29 tweets per week) Inspirational quotes, mindfulness tips, zen stories, mistakes, myths, book recommendations, etc.
(10% 2 tweets per week) I share how I grow Mindful Monday with readers. This pillar promotes MM and behind-the-scenes content.
Second, I schedule all my Tweets using TweetDeck. I tweet at 7 a.m., 5 p.m., and 6 p.m.
Include Twitter Threads in your content strategy
Tweets are blog posts. In your first tweet, you include a headline, then tweet your content.
That’s how you create a series of connected Tweets.
What’s the point? You have more room to convince your reader you're an expert.
Add a call-to-action to your thread.
Follow for more like this
Newsletter signup (share your link)
Ask for retweet
One thread per week is my goal.
I'll schedule threads with Typefully. In the free version, you can schedule one Tweet, but that's fine.
Pin a thread to the top of your profile if it leads to your newsletter. So new readers see your highest-converting content first.
Tweet Medium posts
I also tweet Medium articles.
I schedule 1 weekly repost for 5 weeks after each publication. I share the same article daily for 5 weeks.
Every time I tweet, I include a different article quote, so even if the link is the same, the quote adds value.
Engage Other Experts
When you first create your account, few people will see it. Normal.
If you comment on other industry accounts, you can reach their large audience.
First, you need 50 to 100 followers. Here's my beginner tip.
15 minutes a day or when I have downtime, I comment on bigger accounts in my niche.
My 12-Day Results
Now let's look at the first data.
I had 32 followers on March 29. 12 followers in 11 days. I have 52 now.
Not huge, but growing rapidly.
Let's examine impressions/views.
As a newbie, I gained 4,300 impressions/views in 12 days. On Medium, I got fewer views.
The 1,6k impressions per day spike comes from a larger account I mentioned the day before. First, I was shocked to see the spike and unsure of its origin.
These results are promising given the effort required to be consistent on Twitter.
Let's see how my journey progresses. I'll keep you posted.
Tweeters, Does this content strategy make sense? What's wrong? Comment below.
Let's support each other on Twitter. Here's me.
Which Twitter strategy works for you in 2022?
This post is a summary. Read the full article here

Andy Walker
2 years ago
Why personal ambition and poor leadership caused Google layoffs
Google announced 6% layoffs recently (or 12,000 people). This aligns it with most tech companies. A publicly contrite CEO explained that they had overhired during the COVID-19 pandemic boom and had to address it, but they were sorry and took full responsibility. I thought this was "bullshit" too. Meta, Amazon, Microsoft, and others must feel similarly. I spent 10 years at Google, and these things don't reflect well on the company's leaders.
All publicly listed companies have a fiduciary duty to act in the best interests of their shareholders. Dodge vs. Ford Motor Company established this (1919). Henry Ford wanted to reduce shareholder payments to offer cheaper cars and better wages. Ford stated.
My ambition is to employ still more men, to spread the benefits of this industrial system to the greatest possible number, to help them build up their lives and their homes. To do this we are putting the greatest share of our profits back in the business.
The Dodge brothers, who owned 10% of Ford, opposed this and sued Ford for the payments to start their own company. They won, preventing Ford from raising prices or salaries. If you have a vocal group of shareholders with the resources to sue you, you must prove you are acting in their best interests. Companies prioritize shareholders. Giving activist investors a stick to threaten you almost enshrines short-term profit over long-term thinking.
This underpins Google's current issues. Institutional investors who can sue Google see it as a wasteful company they can exploit. That doesn't mean you have to maximize profits (thanks to those who pointed out my ignorance of US corporate law in the comments and on HN), but it allows pressure. I feel for those navigating this. This is about unrestrained capitalism.
When Google went public, Larry Page and Sergey Brin knew the risks and worked hard to keep control. In their Founders' Letter to investors, they tried to set expectations for the company's operations.
Our long-term focus as a private company has paid off. Public companies do the same. We believe outside pressures lead companies to sacrifice long-term opportunities to meet quarterly market expectations.
The company has transformed since that letter. The company has nearly 200,000 full-time employees and a trillion-dollar market cap. Large investors have bought company stock because it has been a good long-term bet. Why are they restless now?
Other big tech companies emerged and fought for top talent. This has caused rising compensation packages. Google has also grown rapidly (roughly 22,000 people hired to the end of 2022). At $300,000 median compensation, those 22,000 people added $6.6 billion in salary overheads in 2022. Exorbitant. If the company still makes $16 billion every quarter, maybe not. Investors wonder if this value has returned.
Investors are right. Google uses people wastefully. However, by bluntly reducing headcount, they're not addressing the root causes and hurting themselves. No studies show that downsizing this way boosts productivity. There is plenty of evidence that they'll lose out because people will be risk-averse and distrust their leadership.
The company's approach also stinks. Finding out that you no longer have a job because you can’t log in anymore (sometimes in cases where someone is on call for protecting your production systems) is no way to fire anyone. Being with a narcissistic sociopath is like being abused. First, you receive praise and fancy perks for making the cut. You're fired by text and ghosted. You're told to appreciate the generous severance package. This firing will devastate managers and teams. This type of firing will take years to recover self-esteem. Senior management contributed to this. They chose the expedient answer, possibly by convincing themselves they were managing risk and taking the Macbeth approach of “If it were done when ’tis done, then ’twere well It were done quickly”.
Recap. Google's leadership did a stupid thing—mass firing—in a stupid way. How do we get rid of enough people to make investors happier? and "have 6% less people." Empathetic leaders should not emulate Elon Musk. There is no humane way to fire 12,000 people, but there are better ways. Why is Google so wasteful?
Ambition answers this. There aren't enough VP positions for a group of highly motivated, ambitious, and (increasingly) ruthless people. I’ve loitered around the edges of this world and a large part of my value was to insulate my teams from ever having to experience it. It’s like Game of Thrones played out through email and calendar and over video call.
Your company must look a certain way to be promoted to director or higher. You need the right people at the right levels under you. Long-term, growing your people will naturally happen if you're working on important things. This takes time, and you're never more than 6–18 months from a reorg that could start you over. Ambitious people also tend to be impatient. So, what do you do?
Hiring and vanity projects. To shape your company, you hire at the right levels. You value vanity metrics like active users over product utility. Your promo candidates get through by subverting the promotion process. In your quest for growth, you avoid performance managing people out. You avoid confronting toxic peers because you need their support for promotion. Your cargo cult gets you there.
Its ease makes Google wasteful. Since they don't face market forces, the employees don't see it as a business. Why would you do when the ads business is so profitable? Complacency causes senior leaders to prioritize their own interests. Empires collapse. Personal ambition often trumped doing the right thing for users, the business, or employees. Leadership's ambition over business is the root cause. Vanity metrics, mass hiring, and vague promises have promoted people to VP. Google goes above and beyond to protect senior leaders.
The decision-makers and beneficiaries are not the layoffees. Stock price increase beneficiaries. The people who will post on LinkedIn how it is about misjudging the market and how they’re so sorry and take full responsibility. While accumulating wealth, the dark room dwellers decide who stays and who goes. The billionaire investors. Google should start by addressing its bloated senior management, but — as they say — turkeys don't vote for Christmas. It should examine its wastefulness and make tough choices to fix it. A 6% cut is a blunt tool that admits you're not running your business properly. why aren’t the people running the business the ones shortly to be entering the job market?
This won't fix Google's wastefulness. The executives may never regain trust after their approach. Suppressed creativity. Business won't improve. Google will have lost its founding vision and us all. Large investors know they can force Google's CEO to yield. The rich will get richer and rationalize leaving 12,000 people behind. Cycles repeat.
It doesn’t have to be this way. In 2013, Nintendo's CEO said he wouldn't fire anyone for shareholders. Switch debuted in 2017. Nintendo's stock has increased by nearly five times, or 19% a year (including the drop most of the stock market experienced last year). Google wasted 12,000 talented people. To please rich people.
