There were multiple executives making $10m/yr+
There were board members
There were shareholders
Why did all of them not stop this headcount increase if it's as easily reduced as "too much headcount bad, smaller headcount good"? These are paid professionals who are supposedly wealthy, good at their jobs, smart, informed, etc.
How can us commenters on HackerNews sit from our armchair and say "ah, goofballs should've just not let headcount get so high!"
These qualified people thought at the time it was a good idea to get up to 7.5k people. How were they all wrong?
Organizations tend to bloat.
Random, rapid cuts might not be the fix here, but headcount was too high.
Say I'm an engineer. And I write code all day. And I get paid by a company to do it. And it blows up in production. And I tell my boss "code tends to blow up".
Or I tell my boss "code tends to take longer than estimated to deliver".
I wouldn't be given lots of promotions/bonuses with that outlook.
We're talking about a Twitter CEO with $30m/yr+ in total compensation.
There's no way his/her view was "shrug, organizations tend to bloat" while racking in extremely competitive + good pay as somebody whose main job is to drive a company towards maximum growth/profitability.
There's no way the CEO was able to convince a majority of people responsible for paying him (the board), to pay award him $30m/yr in stock options, while he was also "bad at his job enough" to let the organization bloat without as much as an afterthought to it.
We, the people on the outside looking in, have to be missing something.
> There's no way the CEO was able to convince a majority of people responsible for paying him (the board), to pay award him $30m/yr in stock options, while he was also "bad at his job enough" to let the organization bloat without as much as an afterthought to it.
Why not? Why would those board members have ever called him out? The more they're paying him, the more they can pay themselves too.
Elon himself is a CEO with a better track record than Parag, why is he not more legitimate if we are pretending leaders can't make mistakes
There's a clear correlation between org size and CEO pay, even when not in the company's interests. Some CEOs and managers also love the power. Politics is also at work.
> Or I tell my boss "code tends to take longer than estimated to deliver".
I've used variations of that phrase throughout my career. I'm very well paid, partly because I account for this and make certain that other stakeholders are aware.Jack, who was once the CEO of Twitter, has said that they hired too many people too fast.
Elon, who is "paid" way more than $30 million/year to run several companies, also apparently thinks it was very bloated.
I'm not necessarily saying the billionaires are right and the millions are wrong. I'm just pointing out the clear counterexamples to your appeal to authority. I honestly don't understand why you would be so surprised to find out that millionaires also make plenty of mistakes. The Twitter stock price to a degree is one indicator that the Twitter executives were making mistakes.
The cliche HN comment on sites like Twitter (and many, many others, any time headcount comes up) has always been "why do they need so many people?" I've mostly dismissed it the same way I dismiss "I could build Uber in a weekend," but with every other tech giant laying people off, maybe I shouldn't. Maybe the effect of all that extra money sloshing around in the system was to incentivize hiring everyone to make sure you didn't accidentally get a false negative, and not all of those hires were good ones.
If you watch interviews with famous developers like John Carmack, they'll mention that working alone scales to about the equivalent of 5x developers. That is, adding 1-3 extra people might slow you down because of the overheads of communication and coordination. It's only around 5+ in a team that there is a definite advantage.
But what are the chances of putting together a team of 5 rockstar developers that all agree on language, style, and vision? Basically zero. So you have to settle for mediocrity. Popular languages, simple approaches, established design patterns.
If you're an experienced "rockstar" developer coding by yourself and use a fancy language like F#, you can outperform a team of 10+ people. If you're replicating a system you've seen already, 20-50 might not be out of the question, especially if you're smart enough to avoid "tarpits" and instead rely on good quality libraries and CotS components like databases, PaaS, and the like.
OTOH, at non tech companies, all the research interviews and surveys I have done recently continue to show a talent shortage and fears of losing tech staff, so maybe it is just that Tech companies are saturated and have too much capital for their creativity.
I wonder if any science fiction writer could have predicted silliness like Snapchat having fewer outages than serious government websites because Snapchat is better at hiring engineers. Tech hiring is so bizarre.
Our total headcount was under 10 000. Most of that was logistics and call centres (taking retail orders). Our IT dept was literally about 200 ish. All our office staff fit within a few floors of a medium sized building. IT was less than a single floor.
I’d say our software, whilst serving fewer users, was completing tasks orders of magnitude more complex than Twitter. We didn’t have much down time, in fact almost zero beyond physical damage to our networks and the once every few years disaster. Our critical support team was a handful of greybeards who spent much of the time playing solitaire. Code reviews were tight and access to production strictly controlled.
What we did have was a very lean culture, carefully managed over a long time. The company was over 100 years old.
I do not understand how, with far more sophisticated tech, companies like Twitter need so many staff. We could have run Twitter with a thousand folks, including sales. From an engineering standpoint a few hundred would do. And most of us weren’t great engineers. There were a few very experienced freelancers, though. We all worked 0900-1730, but we worked 7 full hours every single day, every minute of those 7 hours. No beanbags. Most of that time was sat quietly coding in a very cleverly designed open plan office (no cubicles) that was like a library.
Looking back, I think the key insight was that we were very cost driven and absolutely kept everything as simple as possible. We had all the usual project overrun problems, usually because things turned out to be more complex than previously imagined. But it baffles me when I hear engineering head count at places like Twitter. If you had given us 1000 engineers, we wouldn’t have known what to do with them.
Cue a team of engineers working for a year+ to build a complicated data pipeline to bring all that data back together into a graph DB (not a clue why a graph DB) and build a DSL to write the code to make these decisions.
That's where the engineers go. It's complexity that is introduced setting off a chain reaction of increased complexity to account for the complexity introduced. Then you need complexity to account for that complexity and so on.
Not that it's all self inflicted wounds. Running a site that counts 1/10 of humanity as active users is a hard thing to do
Come on, just look at the tech industry. When rates were low and stock prices kept going up, "headcount" was used as an indicator of future growth. Grow headcount, investors are happy. After all, the promise of tech stocks was "growth". Usually you're not looking to cut costs until you think growth is over. Of course, Twitter was a dog and did nothing useful for years, no innovation, no new products, nothing. But tech investors definitely saw rising headcount as a good thing...
And the leads installed by the acquiring company seem to be highly intelligent - the company continues helicoptering in their brightest minds to fix this mess. It just so happens they are forced out every 12-24 months because it’s almost impossible to deliver anything there.
For example, last year they introduced SAFe. That caused an exodus which basically equaled a brain drain (still ongoing). Most people I valued for their straightforwardness and ability to cut through BS there have left or are leaving. The person pushing for SAFe introduction has resigned already.
The founders of that company have all left ofc, and are basically trying to restart the same company (or variations) with their own money. And their products are already picking up speed, becoming threats to the original one.
For the same reason that colleges and universities have seen their administrative bloat skyrocket at 10x the rate of student enrollment. Administrative bloat inevitably creeps into all large organizations. Many of the people in the trenches making hiring decisions weren't considering the overall financial performance of Twitter as a company. They were making hiring decisions based on what was happening in their own department, or how that decision would help advance their own agenda, or increase their budget, or increase manpower on a favored project. When you further consider that many at Twitter openly conceded (and in many cases, bragged about) that they viewed their role at Twitter as moral arbiters of society, crucial to policing the discourse of the public, it is not hard to see how enlisting as many true believers as possible to the cause would be seen as desirable, regardless of the larger financial implications.
> These are paid professionals who are supposedly wealthy, good at their jobs, smart, informed, etc.
Wealth is not a valid indicator of ability.
I'm not judging the execs and board members individually but rather questioning your assumption. I have read you mention "supposedly", yet it can be read as a rhetorical term.
Hiring often isn't done because of current requirements. Senior execs come and go and with them so do strategic objectives. You accumulate people and they're often not laid off when the thing they work on becomes redundant. Large scale layoffs are awful for morale and usually only come after a 'crisis' occurs.