Video game union workers rally against $55B private acquisition of EA

313 pointsposted 15 hours ago
by ksec

277 Comments

ryandrake

15 hours ago

> "EA is not a struggling company," the statement reads. "With annual revenues reaching $7.5 billion and $1 billion in profit each year, EA is one of the largest video game developers and publishers in the world."

Seems to be a common theme in 2025: Actually-healthy companies cosplaying as struggling companies, as an excuse to justify layoffs and other activities that transfer wealth and power from employees to management and shareholders. Like, does anyone think any of these BigTech (and MediumTech) companies who are all doing layoffs are really "struggling" and "vulnerable"? It's always just an unbelievable excuse.

bko

14 hours ago

I don't think you need to "justify layoffs". If a company feels an employee is not being productive, they should be allowed to let them go. Same way if an employee feels he is getting underpaid or wants to work somewhere else, they should be allowed to leave.

I've actually always liked working for companies in which the objective was straight forward. None of this "we're a family" stuff. You should be kind, and all the places I was at were kind. But layoffs are a reality and reducing headcount at times is part of that. You need a way to get rid of dead wood, otherwise you would be too afraid to grow and hire when you need to.

screye

13 hours ago

I have changed my opinion on professional warmth.

In demanding industries, people spend 2/3rds of their waking hours around their coworkers. That's practically their whole life. It's cruel to encourage coldness in such an environment. You aren't family. But, you can be comrades. Your friendships can be forged through shared struggles, shared spaces and convenience.

It's a unique trait of tech companies to encourage cold but polite relations with your coworkers. Other industries have layoffs, politics and capitalistic competition. That doesn't stop coworkers from becoming friends.

The new generation is more isolated than ever before. The workplace is one of the few remaining mandatory social spaces. We should encourage the organic warmth that builds up between coworkers. It's cliche. But we're social animals.

jazzyjackson

13 hours ago

> It's a unique trait of tech companies to encourage cold but polite relations with your coworkers.

I don't know how you can assert this, among any other "stuck in a cubicle" office environment. Opportunities to be social are brief anyway. I'm on the side of 'give people time off enough to develop relationships outside of work'. 4 day work weeks would go a long way to helping people get the socializing we need.

nxor

12 hours ago

I agree with the first sentence, but not the rest: even 4 days of work and 3 days of weekend means I am still around work friends more than I am around outside-of-work friends.

I'm also wondering if a 4 day work week would only then make it easier to work two jobs, since there will be people who don't want to be 'idle' for three days, and others who will not use that time to be more social.

mschuster91

12 hours ago

The problem is the lack of "everyday" socializing, and commute is the cause of that. In ye olde heavy industry days, workers lived relatively near to their workplace, and often gathered for a beer after work - just visit any of the old heavy industry towns here in the Ruhrpott, there's so damn many pubs situated closely to the mines, pits and smelters. That also was the prerequisite for why and how unions got popular - the employer could ban unions from entering the workplace itself, but they could not restrict political activity on third party places such as beer halls.

Today, all of that is gone. Average commute times tend to be measured in hours, so with regular "overtime" you're looking at 12 hours of being away from home for work purposes - eight hours of working , two hours of commute, one hour of lunch break, one hour of overtime. And on top of that, work is condensed ever more by everything being tracked, can't even take a piss any more as a call center worker before the supervisor gets a notification that you haven't picked up a call in 60 seconds.

nxor

12 hours ago

Here in the US, urban sprawl is still the norm, and attempts to criticize it seem to be outweighed by "but more houses -> more money" :(

gadflyinyoureye

11 hours ago

Let's be a bit gracious. A big issue is how much value is destroyed forcing people who don't necessarily want to live in a big city to live in a big city. Take Dallas. If you condense it into a 10 mile super city, you lose the sprawl. You gain a short commute, maybe? But you now have people sitting on top of each other. Is this good? No more sprawl, sure. But good?

amiga386

10 hours ago

> But you now have people sitting on top of each other. Is this good?

Yes, it's good. The US seems to have either massively spaced out single family housing, or high density skyscrapers. That's not good.

Most other part of the world, and even older US cities before the urban sprawl started, have reasonable densities where you share a wall or a ceiling/floor with only one other family, or not that many. It's sociable, especially if the housing offers a third space (such as a shared green or a courtyard), and the density is such that amenities are no more than a few minutes walk.

https://en.wikipedia.org/wiki/Missing_middle_housing

underlipton

8 hours ago

So many neighborhoods could be fixed by adding front/backyard ADUs, converting a handful of houses into commercial amenities tuned for the local community (cafes, small convenience/grocery stores, small libraries/coworking spaces, with minimal parking), and car-inaccessible passthroughs to nearby neighborhoods. There's way too much of a focus on building walkable communities, and not enough on converting existing ones with these small changes that don't disrupt the character in the way huge developments might (and in some cases might lend character to cookie-cutter sprawl that has none).

screye

10 hours ago

On the contrary.

Increasing density within the core allows people to switch to walking, cycling and transit. It reduces road traffic and those who want to commute from the burbs gain a faster commute. New housing isn't zero sum. Increasing housing in the core doesn't reduce housing in the outskirts.

The new Caltrains are a good model for transit as a valid mode for suburban commuting. A table, chair and wifi allows commuting to be a productive period to get work done. Boston's commuter rail & NYC's LIRR routes are also excellent, though they could use technological (wifi, charging, tables) upgrades. It doesn't make the commute shorter, but allows you to leave early and continue work on the train.

nxor

9 hours ago

Definitely. Are you in the US? Here in the suburbs things are just awful. Massive houses with 1 to 2 people, massive yards, many suburbanites grow no plants at all. It's very different from both rural neighborhoods and urban neighborhoods. But suburbanites tend to like it, and recent urban sprawl decisions in my area have been approved despite voices against them. And again to your question, people aren't happy with commutes now ... to get _anywhere_ in American suburbs you have to drive constantly. It's a draining way of life, that I can't even begin to describe well.

hombre_fatal

10 hours ago

The US has already experimented with the theory that nobody wants to live in a dense city: urban sprawl is ubiquitous and also why all of our cities have the same problems.

It would be nice to have other options more like the dense cities in other parts of the world that Americans vacation to because they are far more pleasant to be in.

One single east asian style metropolis in the US would be nice.

dangus

10 hours ago

Not everyone wants to be required to purchase and operate a 5-figure transportation device where you must be abled to operate it, it depreciates to dust and might kill you in a crash, etc. Why is that the standard of “freedom” but “living on top of each other” is a bad thing?

Comfortable suburbs do not have to be wasteful of land, purposefully difficult to walk around, and built so that you must own a car to get around. You can live in a single family home without consuming an excessive amount of land. There are many examples of single family homes suburbs and neighborhoods within city limits where land isn’t wasted like crazy and residents are confined to living life in their vehicles.

Americans literally spend thousands of dollars on vacations to the great cities of the world (and Disney World) where people gladly “live on top of each other” in order to enjoy the benefits of walkable urban fabric.

I will also point out that sprawl is horrendous for the natural environment. Dense cities are better for the planet and our long-term survival. Replacing fertile farmland and natural habitats with development has negative consequences. Your preferences to live in sprawl don’t outweigh humanity’s collective needs.

xp84

10 hours ago

> Your preferences to live in sprawl don’t outweigh humanity’s collective needs.

What is the benefit of having this type of argument with people? It sounds like you're saying that you'd prefer to live in a fascist dictatorship that just bulldozes insufficiently-dense neighborhoods as it builds large, dense apartment blocks downtown to forcibly relocate the residents into, for the "good of humanity." Setting aside logistics of this (such as who's going to pay for that project, how many gestapo do you need to force people out of their homes) you first would need absolute dictatorial powers -- and I bet you will say you don't want that. You just want all of the non-city people to all change their minds at once and move to the city. Not really a proposal that's going to be very impactful, because that's never going to happen. For one thing, because most of the people who already live in the city hate the idea of building any new housing anywhere at any time. They hate low-income housing because it's wildly unfair to give it to a lucky few while everyone else struggles, and they hate market rate housing, because (eat the rich/hate those gentrifiers/etc). And everyone agrees they would hate for Transit System or the streets to become more congested.

It's better to focus, instead of on shame, on making the cities that already exist more attractive to people you think should want to live there. Work on crime, work on transit that makes people be glad to not be driving, rather than miserable that they can't afford to park a car there as they watch a full bus bypass their stop or wait 25 minutes for one to come. But also, cities would need to have a lot more high quality housing large enough for families, which again isn't something the suburbanites can fix for cities.

nxor

9 hours ago

Are you terminally online? There is no need to bring up fascism, dictators, and Gestapo.

dangus

2 hours ago

I never said non-city people all need to move to cities. In fact, small towns predate automobiles by thousands of years, and are not examples of urban sprawl. Furthermore, there are examples of suburbs and small towns that are well-served by transit, don't waste land wildly, and don't force you to own a car. [1]

I'm just saying that American zoning and regional planning should be adjusted to use land better and be more focused on humans than vehicles. I'm not saying that everyone needs to live in a studio apartment, nor that the government should use eminent domain to re-develop vast swaths of land and displace people. But simple things like zoning law changes can impact the direction of the future.

You've done a lot of talking about freedom, facscism, and dictatorship of being forced to live in close quarters. I would submit that the opposite has its own aspects of this "dictatorship." For example, you are forced to buy an automobile from a corporation (and most of them sold today track your every move and sell data to insurance companies [2]). You are forced to risk personal injury to drive that vehicle on the road rather than a safer alternative like walking, biking or transit. You are forced to change your job or lifestyle or home if you ever lose the ability to drive yourself by age or disability.

You say that the non-city people will never move to the city, but that has literally already been happening in the past 20 years or so.

Finally, I will point out that cities are already making themselves more attractive in exactly the way you describe. Crime has been plummeting in the last 30 years, city streets are being reconfigured to favor livability, blight is being redeveloped, and more housing is being built. For example, downtown Cleveland, Ohio has more people living downtown now than at any point in history, since before urban flight and regional population decline ever occurred.

I would also submit the idea that it's something of a misconception that cities don't have any family-friendly housing. Sure, NYC isn't a great example, but many other cities have plenty of suitable dwellings at affordable prices. Just because they aren't square footage maxxing doesn't mean they are inadequate.

I also think that many suburbanites visualize themselves as living in "small towns" when they really live in somewhat large cities in their own right that really could be entirely traversed by walking, cycling or taking financially sustainable transit like a modest bus system if they weren't made up of haphazardly parceled off farmland with winding streets rather than an easily traversed grid that has some level of long-term planning rather than a haphazard piecemeal development plan based on which farmers are selling.

[1] https://www.youtube.com/watch?v=ztpcWUqVpIg

[2] https://www.mozillafoundation.org/en/blog/privacy-nightmare-...

nxor

9 hours ago

This is a great comment. And don't forget, small towns can be walkable too. Old small towns anyway. So it's not just cities that are dense, rather it's modern suburbs aren't dense.

But how will we ever solve this when people don't seem to care?

screye

10 hours ago

Yep, Dense urban neighborhoods and aggressively increasing net-new-housing production would solve some of these issues.

The housing theory of everything really is a theory of everything.

Lammy

12 hours ago

Caused by commute sure is a funny way to say caused by lack of housing near jobs, like it's the roads' and rails' fault? :p

swiftcoder

11 hours ago

'commute' seems like a decent proxy for all the various intentional decisions in urban planning and transit investment that got us into this mess

Lammy

11 hours ago

I strongly disagree, because that argument just becomes an attack on people's freedom of movement rather than an attack on the structural issues which led to long commutes being the least-worst option for many people.

This is evident in the way people immediately screech “induced demand!!!!1” the second anyone talks about widening a road, like the point of building _anything_ isn't for people to use it. Nobody ever says induced demand when we build houses and people want to live in them lol

BolexNOLA

10 hours ago

I’d say it’s the roads and parking lots/spaces faults in a lot of way. Less rails’.

Lammy

10 hours ago

That makes no sense because the original issue is everyone living so far from work that they never make time to gather near work with coworkers because that time is spent commuting. How they get to and from has absolutely nothing to do with it.

BolexNOLA

10 hours ago

Have you tried walking in Houston? Everything is so far apart on a block by block level (crossing the street) and people are flying down the roads while parking gobbles up real estate everywhere.

cperciva

11 hours ago

In demanding industries, people spend 2/3rds of their waking hours around their coworkers.

If you sleep 8 hours/night, this means you're spending 75 hours/week with your co-workers. That seems... a bit excessive?

screye

11 hours ago

Should've clarified. I meant for the 5 working days. 10/16 hours.

swiftcoder

11 hours ago

That doesn't seem all that unusual for the Silicon Valley darlings. The days of FAANG employees playing table-tennis all day and heading home at 4:30 ended a while ago

theragra

9 hours ago

I agree, but my mind only changed when I got to the company with good working conditions.

Until you have no decent work life balance, benefits and compensation, speaking of friendship and family looks like an sarcastic insult.

But to be true, most of my current friends are through work. Some are from hobbies or university, but nobody is from school.

AlexandrB

13 hours ago

There's a difference between professional warmth and "we're a family". The latter usually comes top-down, from management and is fundamentally disingenuous. It's often a self-serving way of trying to get you to treat the company as your family, while company leadership still won't hesitate to lay you off in a mass zoom meeting. It's fine to be friends with co-workers or managers, but don't let companies obscure the fundamental nature of the relationship.

ToucanLoucan

12 hours ago

Agreed wholeheartedly. I'm not certain it's the company encouraging it, though. IMHO it's far more the economic realities we find ourselves in, where holding onto the same job for an extended period of time is basically, according to all casual career advice, fucking yourself over in terms of compensation.

My generation has been encouraged by this reality since we entered the workforce to change jobs every few years, because companies are so stingy with raises. If you're planning to do that, you naturally keep distance with your coworkers; they're probably leaving before you are, and even if not, you are planning to.

Companies see no value in their existing workforce and it's honestly quite self-defeating and stupid. "Losing" any worker be it to their choice, or layoffs, or whatever it might be is a genuine LOSS to your team. It's however many months or years of experience not just with code, but with your code-base, your business, and your products going out the door. The fact that so many companies lose so many good people because they simply refuse to let an employee have a bit more money is honestly mind-bending; and once they're gone, they'll happily list their job online, often with a salary range even higher than the employee they just fired wanted.

Absolute corporate idiocy.

gspencley

10 hours ago

> It's cruel to encourage coldness in such an environment.

You're straw-manning. The person you're replying to never once mentioned being cold, let alone encouraged it.

They simply expressed a preference for companies that don't try to pretend that their mission and purpose is something other than what it is.

I've worked in tech exclusively my entire 25+ year career. And I've worked for way more companies that try to put on a front of "we're a family" than the opposite.

As someone who has worked as an employee and owned businesses (often simultaneously), I'm on board with the parent. I don't want coldness in the workplace. But I also don't want employees or co-workers who don't respect that we're here to build something that we're offering for sale on the marketplace either, least of all in a highly competitive landscape where we're under constant threat of going out of business if we don't get productivity and efficiency right.

I want my businesses to be enjoyable places to work. But at the end of the day, if I'm paying money for someone who isn't pulling their weight then I am extremely resentful of anyone who tries to get in the way of me correcting the fact that they are effectively ripping me off and, by doing so, hurting every single one of their co-workers by hurting their employer.

Succeeding in business is hard. And while there are a lot of shady businesses out there, and a lot of big corps do things we take issue with, 99.9% of businesses are making the world a better place for you to live by producing everything from the concrete that paves your sidewalks, to the shippers that get food from farm to your table. The anti-business, anti-capitalism attitudes that are so prevalent in the west are truly disturbing.

By all means be pro-worker. But there really ought not be a conflict between business and employee since, at the end of the day, it is a mutually beneficial relationship. Business can't succeed without its employees, employees don't earn a cent if the business doesn't earn a profit. And lets not forget that what a business can afford is irrelevant. The business doesn't exist to employee people. It exists to produce the goods or services that it set out to in order to turn a profit. And there is nothing wrong with that. An employee that hates the profit motive is one I don't want working for me. You're hopefully profiting by being employed. Otherwise I don't know what you're doing with your life. So stop the hypocrisy and double standards. We're not a family, and we don't need to be cold to each other, but we're in this shit show together so let's act like reasonable, rational actors and do our fucking jobs so we can all take home money and feed our families and savings.

qwery

13 hours ago

The term 'layoffs' in this context is simply not what you're describing. These layoffs occur at such scale that it's unreasonable to assume any individual employee being "let go" has even been evaluated as an individual.

And, yes, of course layoffs are something that need to be justified, just as with firing an individual employee, as you know -- the "employee is not being productive" is a justification.

gruez

13 hours ago

>These layoffs occur at such scale that it's unreasonable to assume any individual employee being "let go" has even been evaluated as an individual.

Isn't that most layoffs? Think of the layoffs post GFC. Did the subprime mortgage crisis suddenly make everyone incompetent, or are companies simply trying to trim budgets and need to hit some number? If it's actually due to poor performance, it would be through a PIP or similar.

wholinator2

13 hours ago

Yes but the GP used poor individual performance as their only positive reason of layoffs not needing justification. So the reply was that individual performance is almost never a factor in actual layoffs, a point which you and I agree with. Thus, poor employee performance is not a monolith that can be used to explain all layoffs, and these companies should have to give better reasons that align with actual reality.

It's about the immense asymmetry of power here. Yes, a person can leave just like a company can fire. But a single person quitting is nearly never a massive disruption to the business, but the business firing someone is nearly always a catastrophy for that person.

I don't need to justify quitting because I'm not harming you by doing so. Laying off hundreds of people absolutely requires careful and validated justification as your significantly harming nearly everyone impacted.

Of course these companies do pay well usually, but not all of them do, and not every individual has the privilege of cheap health and rent and a cheap family. Any single significant factor in a persons life can cause that "well paid" factor to mean a lot less, especially if it drags out to 6 months or more like it is known to do

brailsafe

13 hours ago

Ya, it's an easy mistake though, very subtle difference between general dismissal/firing/layoff. They're interpreting layoff to mean the same as "firing" or general dismissal, but as far as I understand it's more like a shortage of work thing due to lack of income on the company side, compared to insufficient productivity on the worker's side.

A subtle difference in terminology, but a bit difference in terms of outcome. In a layoff you'll likely have no issues getting severance if it was ever on the table to begin with, employment insurance, it's not a mark against you on a resume necessarily or socially.

parineum

12 hours ago

> ... individual performance is almost never a factor in actual layoffs

They always are.

High performers aren't getting let go, even if they are in department being cut, they will be moved.

Arainach

11 hours ago

This really isn't true. Take Microsoft, for instance - one of their recent layoffs eviscerated the Principal band including a number of high performers. I'm talking people I personally knew who had climbed the ladder rapidly, were directly working with multiple external partners driving tens of millions in revenue (that is, external partner has problem, threatens to pull spend on product, this employee is one of the first pulled in to engage and get it solved), with visibility all the way to the VP level and higher happy with their work and partner teams trying to poach them away - still laid off.

BeetleB

12 hours ago

> High performers aren't getting let go, even if they are in department being cut, they will be moved.

Wishful thinking. I just survived (yet another) round of layoffs. They are desperate to bring headcount down. If a whole team is being cut, everyone goes.

It's really a question of how flexible upper management is in the numbers they set out. If there's wiggle room - sure. They will try to find a place in an adjacent team. But if the whole department is getting slashed, there is no adjacent team.

fvgvkujdfbllo

12 hours ago

Absolutely, not true.

CTOs don’t care about productivity at IC level. I have seen plenty of high performers getting laid off with rest of their teams.

Retric

12 hours ago

A 20% cut across the entire company isn’t the only form of layoffs. When everyone at a factory is laid off individual performance means absolutely nothing.

Sometimes a company decides a specific market it’s worth it and every single programmer in the company is let go. Sometimes companies decide everything making over X$ in a position isn’t worth keeping etc.

astura

10 hours ago

>High performers aren't getting let go, even if they are in department being cut, they will be moved.

Dude, no. This is just wishful thinking.

I've seen critical employees get laid off without any backup plan or even knowledge of what these employees do. When those critical tasks then don't get performed I've seen laid off employees be called and begged to come back because there's no one left who even knows how to perform those critical tasks.

Layoffs rarely make sense. I've been though multiple rounds of:

"Our administration costs are too high, layoff 20% of them."

"Oh wait, admin work is not getting done. We need more admin staff, hire"

"Our administration costs are too high, layoff 20% of them."

Ad nauseam.

watwut

12 hours ago

They are let go. Frequently who gets fired geta decided from top or by consultants that dont know anything about people.

They you have firings of whole sections.

Aaaand people with highest salaries are let go to save more movey. Some of them are actually high performers.

And then you have layoffs by managers who decides who stays based on printed code people presented ...

terminalshort

12 hours ago

You aren't harming someone by declining to pay them for their work, especially not when there is severance involved.

lovich

11 hours ago

With the way our society is set up to tie a large number of benefits necessary to live to employment, then yes you are actually harming someone by ending their employment.

Severance might outweigh that harm, but it depends on the amount, if any is given. Also I want to point out that the vast majority of companies give 0 severance. I’ve gotten it once in my life and I’m fairly certain it was “shut the fuck up” money as they had done some shady shenanigans to a bonus I was entitled to.

terminalshort

11 hours ago

They aren't necessary to live. They are necessary to live a luxurious first world lifestyle.

Arainach

11 hours ago

Healthcare is necessary to live. Rent is necessary to live.

lovich

10 hours ago

Ah yes, I forgot that surviving treatable diseases is a luxurious first world lifestyle.

If you don’t believe that US regulations and law are set up in a way that pressures people to maintain employment at a company, then you have your head in the sand

terminalshort

8 hours ago

> surviving treatable diseases is a luxurious first world lifestyle

Unironically correct

immibis

13 hours ago

The latter, and that doesn't make it a good thing

jdminhbg

4 hours ago

> These layoffs occur at such scale that it's unreasonable to assume any individual employee being "let go" has even been evaluated as an individual.

There’s no reason to think that you need to evaluate individuals to have a reason to let them go. I might be the best iOS developer in the world but if I’m working for a company that doesn’t need a custom iOS app, they should lay me off.

baggy_trough

13 hours ago

If I no longer want to pay for your services, I should be able to stop for any reason, or no reason at all.

tavavex

13 hours ago

If you're an individual or a small business owner who wants to no longer pay for my services, you should be allowed to stop doing so. If you're a megacorp, however, you wield extremely disproportionate power over thousands of people, and your moves can send shockwaves through an entire industry and have severe consequences for your employees that have no real power in comparison to you. I think that moderating the actions of huge businesses will be far better in these situations, especially if their reasoning for mass layoffs is maximizing profit-wringing rather than actual desperation and an immediate need to cut expenses.

chrisco255

12 hours ago

Absolutely not, if megacorp feels need to lay off half its workforce that is its prerogative. Employment is a business relationship. Businesses have to be flexible to be competitive.

The whole point of a business is to make a profit. If its not making a profit or growing, its at risk of dying, then layoffs hit 100%. The ship has to stay afloat.

There's no fundamental diff between a small business and large business here except scale.

9dev

11 hours ago

That just is not true, though. A company externalises a lot of its cost on the rest of society; laying off older employees, for example, that likely won’t find another job until retirement, are a liability society has to take care of. The only thing separating Workers with insurance coverage via their employer from eternal financial ruin is their very job.

When the auto companies fucked up in Detroit, they wreaked havoc on an entire town. The tech giants raised rent in the valley so much, it essentially became uninhabitable to anyone but software engineers. There are more examples.

Businesses are just as much part of society as individuals, and they have to do their part of this relationship. IMHO this includes being considerate about layoffs, and taking care of your employees.

mlrtime

3 hours ago

You're not calculating the cost to society by keeping zombie companies alive that aren't productive.

chrisco255

10 hours ago

A company generates value for society, or it ceases to exist over the long run.

We have unemployment insurance for laid off workers and most people at megacorps also get severence when they get let go. Older employees can find the same jobs at different companies there are almost no jobs that are exclusive to any one company and even where that is the case you can still find related jobs. There is no excuse.

Unemployment levels are near 4% right now, historically near all time lows.

Silicon Valley is expensive because of nimby zoning laws. We do not have that problem in Austin as Texas is pro-growth and allows for dense, high rise buildings and apartments to be built at will. As a result, our rent has gone down significantly in the last several years despite population growth. Fix your regulations and the supply problems in housing will fix themselves.

terminalshort

12 hours ago

A megacorp employer holds no more power over its employees than a small business.

lovich

11 hours ago

That is a myopic view not born out by reality.

It’s as truthful a statement as saying the law treats all equally since both the rich and poor are banned from sleeping under bridges.

terminalshort

11 hours ago

And yet you completely failed to say what is wrong about it

Sparkle-san

10 hours ago

Just look up any town that had a single large employer and what happened to those towns after that employer left. Small companies do not posses the same ability to impact an entire town of people and everyone who lives in it, even those that didn't work for the employer.

mlrtime

3 hours ago

So the have power only when they cease to exist? That's an odd example to use.

terminalshort

8 hours ago

OK, I will grant you this one edge case. As for the other 99% of people, my point stands.

lawlessone

13 hours ago

>If I no longer want to pay for your services, I should be able to stop for any reason, or no reason at all.

Yeah but you live in a society, not a world of 8.1 billion sovereigns.

baggy_trough

13 hours ago

A properly ordered society allows people to stop paying for services when no longer wanted.

lawlessone

12 hours ago

employees aren't services, they're employees.

This libertarian fantasy where you can do as you please, pretending your company is a person and your employees are furniture might be what you think is a "properly ordered society".

But guess what? , most of us don't, and it's a common view across both the left and the right :-). It's same reason most people left and right didn't really care when some guy that denied people their health insurance got denied himself.

baggy_trough

11 hours ago

If you are talking about the murder of an innocent man, I hope we can both agree that this was an act of pure evil, regardless of what his job was.

lawlessone

6 hours ago

If the allegations about the suspect are true it was an act of someone in pain denied access to healthcare.

Like the case of Kirk or Ian Watkins, nobody should be killed but i won't lose sleep.

gjsman-1000

13 hours ago

At a fundamental level, I agree with you.

I also believe that the fact 1,000 employees can be laid off at once, and then flood the market with applications, is not something we should prevent. Rather, it's a sign we need to make more small independent companies. This is a concentration problem.

That would of course require that maybe we shouldn't have the Magnificent 7, but the Magnificent 100. Maybe instead of the Fortune 500, we need the Fortune 5000, with each one much smaller. Not happening anytime soon with current incentives, but I think it would be better for everyone. We shouldn't split Google into two, but into thirty.

It would be radical... but imagine if we set an aggressive, aggressive cap on employees and contractors. Like, limit 100, with a 1% corporate income tax on every additional person. Projects at scale - 50 companies cooperating; maybe with some sort of new corporation cooperation legal structure (call it the D-Corp, it manages a collection of C-Corps working together, and cannot collect profits for itself or own property, a nonprofit that manages for-profit companies who voluntarily join in a singular direction).

bigyabai

9 hours ago

That wouldn't just be radical, it would be a violation of free market principles. If smaller orgs are actually more effective than big ones, then the market would self-correct. I'm inclined to argue that we have the economic data to prove your theory wrong.

Imposing a hard headcount limit would be the definition of pointless government overreach.

dijit

14 hours ago

I'm in the same camp as you.

However the best work I ever did was done when I didn't have a pressure of being fired for offending the wrong person, and that I had the psychological safety to think longer term- since a short term "time-waste" often converted to better long term outcomes for everybody.

Aurornis

14 hours ago

> However the best work I ever did was done when I didn't have a pressure of being fired for offending the wrong person, and that I had the psychological safety to think longer term- since a short term "time-waste" often converted to better long term outcomes for everybody.

I felt the same way until I worked at a company where almost nobody ever got fired or laid off. Anyone who was hired was basically guaranteed their job until the end of time because the leadership didn't like letting anyone go.

It only took a couple years until every time you needed to do something you'd run into some employee somewhere who wasn't doing their job. Even many people who seemed capable and appropriately skilled started slacking off when they realized there were never any consequences at all.

It was like a broken windows theory for the workplace. As people looked around and saw that others were doing almost no work, it started to spread. The people who liked actually shipping things started leaving, turning it into a snowball effect.

So there's a balance. Always working under threat of layoff and seeing good coworkers let go when you're already overburdened isn't good. Working in a company where there is no pressure at all to perform isn't good either.

dijit

13 hours ago

Hah, yes, I've also been in those companies, and that's exactly why I have the shared view of the person I was replying to.

There's a sort of apathy osmosis that happens when you realise that you can't actually do anything because everyone else is sort of checked out... so the you, yourself, sort of check out too.

I get anxiety and "itchy" if I don't move towards my goals with any kind of swiftness.

n4r9

12 hours ago

That's the opposite end of the spectrum though. OP was describing a culture where you're free to make short-term trial and error losses as part of a long term strategy. You're describing poor management.

nonethewiser

13 hours ago

Guess it's their loss then. If companies are more productive by being more relaxed then we should see more of those companies survive and thrive.

dijit

13 hours ago

We do, but they don't make waves.

And as other comments point out, not having any pressure at all creates a self-fulfilling stall-cycle.

sarchertech

12 hours ago

Assuming a perfectly competitive market with no externalities sure.

bpt3

14 hours ago

In my experience, companies that are focused on being a well-run company rather than a politically/personality/emotionally driven shitshow also are the ones that have long-term perspective and avoid making kneejerk reactions to almost everything.

gjsman-1000

13 hours ago

Been there - done that. Worked at a company with no employee pressure, and it was absolutely infuriating that I could work my tail end off, while another employee was provably committing borderline wage fraud, but it always got written off as "personal issues" rather than take the risk of intervening... ever.

To the point I even had a boss say that part of this happens because nobody is there to spank adults when they need it (seriously), rather than intervene too strongly and have to find a replacement or hurt feelings or something. Or another contract worker, I got an apology from said boss... but he insisted she's better now than she used to be, the latest incident is mild compared to incidents before I arrived. As though that fixes it.

Much happier now at a company which cuts dead weight; and accepts we can't afford it.

JohnMakin

10 hours ago

I like more competitive environments too, but when life hits you out of nowhere, as it surely will, you may come to regret working in one of these environments when it happens. It happened to me - a close family member died and they wouldn't approve any time off to attend to it, then I had a major surgery, barely got approved for the day of the event and no recovery time, so I was forced to take over a month of unpaid leave. I was basically forced out after that point, for things that are pretty normal for someone to be dealing with. You're not going to be young forever.

dfxm12

14 hours ago

Layoffs are different from firing individual people. Layoffs do have some legal requirements, including what's outlined in the WARN Act and/or whatever local equivalent. Layoffs also have to be justified to Wall Street or else the stock price will be affected. GP is clearly talking about the latter.

jayd16

14 hours ago

> [...] layoffs". If a company feels an employee is not being productive [...]

Layoffs are not about individual performance

rafaelmn

14 hours ago

Productivity and performance are not the same thing. You can be a top performer on a project that flops and you're a net negative. Ideally you'd get transferred to a more productive role but there are a lot of variables involved.

fn-mote

14 hours ago

Are you sure?

So getting rid of 20% of the workforce and selecting “the bottom 20%” is not a layoff?

jayd16

14 hours ago

You can loosely rank folks as best as you can but its still inherently a systemic action and not based on individuals. Other factors beyond individual performance caused the layoff.

fvgvkujdfbllo

12 hours ago

You can’t always select the bottom 20%. Sometimes, whole teams or departments are eliminated. Employees are simply a number with cost and only thing matters is cost. They almost never look at individual performance or productivity.

If your manager or director is not getting laid off with you and you have a good relationship with them, then they might fight to keep you.

conception

14 hours ago

One comment on this is when you leave a company is customary to give your two weeks. Companies rarely offer than consideration for employees. This unbalanced power dynamic is even greater as a layoff doesn’t mean a catastrophic situation for the company but for the employee it often is. The two events shouldn’t be compared apples to apples.

ahtihn

13 hours ago

> Companies rarely offer than consideration for employees

In almost all layoff situations, employees get severance even in the US no?

At least for the big tech layoffs that seemed to be the case.

cm2012

13 hours ago

This is the case for big tech, almost never for small businesses in usa

gmanley

13 hours ago

Define small business, because unless you are talking a mom and pop shop, my experience is severance is still a thing and definitely not big tech exclusive.

cm2012

9 hours ago

Any company under 50 employees, which makes up 85% of American businesses. And even bigger companies outside of tech usually give really small severance. Tech is basically the only area where you get 3-6 month packages for a standard lay off.

lovich

11 hours ago

Big tech is unique in usually giving severance. I’ve only seen it given to non director+ titles once in my career

jrnng

12 hours ago

Imo the term layoff used to mean something different. Getting rid of "dead wood" should be a firing, not a layoff.

Layoff is "this division or project is a dead end or not aligned with strategy and we are shutting it down, and don't have other spots to place everyone"

chaosharmonic

13 hours ago

> I don't think you need to "justify layoffs". If a company feels an employee is not being productive, they should be allowed to let them go.

Layoffs, by definition, aren't about individual employees.

s1artibartfast

4 hours ago

By Legal definition. On the other hand, I have never seen a layoff that wasnt about individual employee performance

dragonwriter

14 hours ago

> I don't think you need to "justify layoffs".

Layoffs are a signal to markets of struggles, and firms absolutely do, in practice, need to justify them (and their scale and focus) to avoid the risk of a self-fulfilling market perception that they signal a problems that they do not fully resolve. (If there is already a problem narrative, much of the justification is obvious, and the firm just needs to cover explaining how the layoffs address the problem.)

ndriscoll

14 hours ago

Layoffs are a signal that a company feels they don't see a way to get a high enough ROI on their productive capacity. That could be performance related, or it could be e.g. that the company does not see good R&D avenues to pursue, so they scale down their R&D org. Or market demand dries up so they scale down their sales org. Or interest rates change, changing the definition of "high enough ROI". In theory people working in computer fields are always building automation so it should be easy to scale down and coast in maintenance mode if the business wants to do that. That applies less to video games of course, but even there the top selling games each year consistently feature Call of Duty <current year>, Madden <current year>, and FIFA <current year>.

cudgy

14 hours ago

Layoffs indicate a poorly run, inefficient company, especially if other companies in the same industry had fewer layoffs. Typically this means that the company hired and trained more workers than it needed; their estimates of future opportunity was wrong relative to other companies that did not require layoffs because they’re hiring was based on more accurate estimates.

Another factor is that retained employees that learn of companies layoff frequently become concerned about their own position and the treatment of the workers that were laid off, reducing employee morale. High performers may start looking for another job in order to avoid expected future layoffs.

Then there’s the impact on potential future employees, who will also know about the layoffs. These employees will be aware of recently layoffs and will expect more money from said company who will also have to train the new employee that replaced the one they laid off before.

Finally, you have the impact on potential customers or existing customers. Some customers have relationships with employees that are laid off, and this can be jarring. The customers may become concerned about the liability of the company or the management of the company, potentially moving all our part of their business to another firm.

All of these effects are not typically beneficial to the company or it’s shareholders.

helge9210

14 hours ago

If we assume the company runs N projects with positive Net Present Value (NPV) at the start of the project and after re-evaluation some of the project NPV turned to be negative, closing the project and laying off the staff will actually make company worth more.

dragonwriter

13 hours ago

Yes, but the reason you will see companies put out press releases explaining layoffs is because the market does not on its own make such generous assumptions reliably when it sees layoffs.

(And even if it does, the fact that the NPV of a project "turned negative" indicates that the value of the company dropped, and the layoffs are only a partial mitigation, which still hurts the perception of the company if the market hadn't discovered and priced in the drop before the company did and reacted with layoffs.)

ghurtado

13 hours ago

> they should be allowed to let them go.

Sounds like you've never worked here, but in the US that's always been the case.

US corporations do not need you shilling for their rights, they are doing very well in that department without your help, thank you very much.

simonjgreen

13 hours ago

I agree with you, however, layoffs and performance management are different things though.

If an employee is not being productive, that is a performance management issue and a good company will start by trying to fix it and if that doesn’t work will replace them. A bad company will retain bad performing people.

Layoffs are when you don’t have the work for them or you can’t afford something so are restructuring or similar. A good company will make layoffs and restructure if the economics require it. A bad company will keep going without doing that, ignoring their finances.

jandrese

13 hours ago

If an employee is unproductive they can be fired. Layoffs are how you get rid of employees that are productive without having to make up some justification because it lowers your costs and increases the stock price, which rewards the executives.

terminalshort

11 hours ago

If the employees are productive, then why would laying them off increase the stock price?

jandrese

11 hours ago

Because the stock market likes reductions to costs and doesn't think past the current quarter.

terminalshort

11 hours ago

This is one of the stupidest arguments I have ever heard. Amazon was worth a fortune even though if made no money for almost 20 years since investors anticipated future profits.

bcrosby95

11 hours ago

This is a well known problem with the public markets. It is stupid, but your ire should be reserved for the markets themselves not the person pointing out the stupidity.

terminalshort

10 hours ago

Well known by complete idiots. Anybody with a brain can look at how the stock market works and see that it is actually a very long term focused market.

Arainach

8 hours ago

Over an over, this isn't true. Look at GE under Jack Welch. They sold off everything that made them great, but it sure looked like they were profitable, so the stock soared right until everything went to hell. Look at all the companies that have copied their pattern over and over to this day. Everything is about manipulating the perception of the market right now, not the perception of the market - or even the existence of the company - in a decade.

Long-term oriented markets wouldn't be dumping so much money into high-frequency trading. Instead of reducing latency, a long-term focused market would increase the minimum latency to disable that kind of nonsense.

terminalshort

8 hours ago

Well if you're so much smarter than the market, why don't you go ahead and trade on this knowledge and make massive profits from your superior ability to see into the long term?

Arainach

7 hours ago

Because the market can be irrational longer than I can remain solvent.

YeahThisIsMe

12 hours ago

Companies don't have feelings.

And s company being able to fire anyone for any reason isn't even close to being comparable to an employee being "allowed" to leave the company for any reason.

What a wild comment.

pfisch

13 hours ago

I agree with you, though I would say what is happening here is more like strip mining vs cutting dead wood.

I don't know that it should be legal to buy a company and then pay for it by loading up the company with debt obligations. It seems like a form of value destruction in order to enrich a bunch of vultures.

Fundamentally it is basically saying maybe we could buy this company and then plunder it with some % chance that it will still stay afloat and keep generating profit after they gut the company to try to service a debt that should not be attached to the company at all and provided no value to anyone but the vultures.

Ferret7446

10 hours ago

I don't see how you can outlaw it without being authoritarian. If they buy it they can do whatever they want. They can liquidate the entire company.

pfisch

8 hours ago

I'm not sure, but this seems like a form of anti-social behavior that destroys value for everyone except the people plundering the company. It is almost like piracy and we should honestly try to figure out a way to not allow large companies to be destroyed in this manner.

We just shouldn't let people buy profitable companies because they think they can make a return by destroying the business and then bleeding out a small profit once the company had been gutted. It isn't good for the economy, the employees, or really anyone except the plunderers.

terminalshort

11 hours ago

Once you buy the company you are free to borrow money because it's your company. Why wouldn't you be allowed to do that?

cptroot

11 hours ago

The same reason payday loans are illegal in 9 states. Companies who follow this pattern of behavior are more likely to go into bankruptcy.

terminalshort

10 hours ago

Then, fuck em, let them go bankrupt. Companies have no right to continued existence.

Arainach

8 hours ago

Companies that go out of business hurt more than the owners - they hurt the employees, the community, the state (which has to care for the employees let go), etc.

terminalshort

8 hours ago

That is unfortunate, but it is good for society to have rapid turnover of unprofitable businesses. The employees will be fine and get new jobs. When one company goes under, they will go to another. You don't work for a company, you work for an industry, and unless the layoff is due to industry wide issues, you will be fine.

Arainach

7 hours ago

It's bad for society to have rapid turnover full stop. It's disruptive and stressful to the humans involved and can be disastrous for the environment (if a bankrupt company just leaves a bunch of waste behind or already did and can't be sued to cover the cleanup), disastrous for the rest of the economy, local or larger (both their customers and their suppliers are affected), and causes a huge amount of wasted time and resources that should be avoided where possible.

We've learned that businesses are lazy, cheap, and untrustworthy, and will lie, steal, cheat, and abuse everything unless you write strong rules and enforce them regularly. It's in society's best interests to incentivize running good businesses, not creating messes and declaring bankruptcy.

terminalshort

7 hours ago

The last damn thing I ever want is some centrally planned hell with some worthless bureaucrat telling me how to run my business when he has no idea how. This is a competition. Sink or swim. And if you can't swim you should be out of the game.

pfisch

8 hours ago

Well that isn't what they are quite doing though. They are using the money they force the company to borrow to pay for the purchase.

terminalshort

8 hours ago

They don't "force" the company to do anything (at least not any more so than any other CEO / owner). They are the company.

mschuster91

13 hours ago

> You need a way to get rid of dead wood, otherwise you would be too afraid to grow and hire when you need to.

Alternatively, you can retrain the workers. Replacing workers has serious cost disadvantages: recruiting itself costs money (the HR staff dedicated to that, external headhunters, "employer branding" measures, job exhibition rents and swag), layoffs cost reputation, and new workers need to be trained in your company specific procedures from timetracking to expense refunds.

Unfortunately, these costs are all too often hidden deep in the balance sheets, which makes just dumping off entire departments while hiring up other departments appear much more financially attractive than it is in reality, all costs considered.

And finally, the ethical question remains: executives get paid sometimes a hundred million dollars a year because of the "responsibility" they hold. But in the end, they do not hold any responsibility, any accountability - financial penalties for shenanigans get covered by D&O insurance, and the first ones to get sacked for (or having to live with) bad executive decisions are the employees while the executive gets a departure agreement showering them with money.

IMHO, before a company can even fire a single worker for another reason than willful misconduct, the entire C-level executive has to go as well, with immediate stop of pay and benefits.

alephnerd

13 hours ago

> Alternatively, you can retrain the workers

Back in my PM days, I tried this with a couple old timer SWEs at my company. All except 2 blew it off and when pushed back they tried to play politics via the "old boys club" of buddies in Engineering Leadership (in PM vs Director or VP Eng, the Director or VP Eng always wins).

Retraining only works if the people who need to be retrained want to take the effort to retrain.

In an industry like tech where self-learning is so normalized and to a certain extent expected, the kind of person who needs to be forced to retrain just isn't the kind of person who actually wants to retrain.

Also, ime, age does not correlate to this. Being lazy is a personality defect orthogonal to being a gray beard or someone in your 20s.

> these costs are all too often hidden deep in the balance sheets, which makes just dumping off entire departments while hiring up other departments appear much more financially attractive than it is in reality, all costs considered.

Not really.

The process of hiring a new employee in aggregate costs at most around $10k on top of salary.

The cost of keeping a low effort employee is the salary along with the additional 30-40% paid in benefits, insurance, and taxes of retaining that employee.

As such, it's basically a wash at the individual level.

> executives get paid sometimes a hundred million dollars a year because of the "responsibility" they hold

Most don't though.

The person who ends up deciding to increase hiring is almost always an Engineering Manager or Director (depending on size of company).

VP and above only have visibility on top-line numbers, but the actual business case to hire is made by EMs or Directors.

mschuster91

12 hours ago

> In an industry like tech where self-learning is so normalized, the kind of person who needs to be forced to retrain just isn't the kind of person who actually wants to retrain.

I think that's actually a two-way street. Companies expect self-learning and -improvement from employees, but where's that 20% time that used to be the norm in IT?

IMHO, the root cause rarely is someone being "set in stone" from the start - it's when the relationship between the individual and the company (or their direct manager) grows cold. In German we call that "Dienst nach Vorschrift". Loyalty is a two way street as well, and most companies aren't loyal to their employees - or they cease to be loyal and supportive towards their employees when the executive suits decide that their bonuses are under threat.

> The process of hiring a new employee in aggregate costs at most around $10k on top of salary.

Headhunter rates are ~20% (although I've heard of 50% for really senior staff) of the yearly base pay... so you're looking at $20k just in headhunter costs for your usual SWE, and that doesn't count the distributed costs for general hiring, "wasted" hours on interviews and their preparation that don't lead to a hire, or the cost to reacquire knowledge that hasn't been formally documented, or the time until the "new" guy has shown enough capability to be trusted to do stuff on their own (i.e. lost productivity).

> VP and above only have visibility on top-line numbers, but the actual business case to hire is made by EMs or Directors.

To hire an individual person, yes. But the decision to do entire departments worth of layoffs because the stonk is going on a dive after some exec's pipe dream didn't play out? That's C level. And these fuckers don't get to feel the consequences.

alephnerd

11 hours ago

> where's that 20% time that used to be the norm in IT

That was never the norm outside of Google.

And to be brutally honest, if we are offering a TC of $200k-400k, we expect you to execute at that level of performance.

If you want to just be a code monkey, why shouldn't I find someone else?

> most companies aren't loyal to their employees - or they cease to be loyal and supportive towards their employees

There is no reason for employees to be loyal to a company nor companies to be loyal to employees.

Do you job or we can find someone else who can - most people overvalue their actual value to an organization.

Similarly, as an employee, if you detest an employer, find another job and give your 2 weeks - no more, no less.

But to land another job, you will need to self study constantly.

> Headhunter rates...

Most companies do not use headhunters.

> count the distributed costs for general hiring, "wasted" hours on interviews and their preparation that don't lead to a hire, or the cost to reacquire knowledge that hasn't been formally documented, or the time until the "new" guy has shown enough capability to be trusted to do stuff on their own

As a business, those legitimately are not as significant a cost as dealing with an underachieving employee on payroll when we are paying $200k-400k TC. Most product lines only generate high 7 figures to low 8 figures in revenue a year, so an underachieving but highly paid employee has a significant drag on the business of a specific product.

> To hire an individual person, yes

Even creating the AoP to hire N amount of employees is largely proposed by EMs and Directors, and then iterated or negotiated on with VPs and above

> To hire an individual person, yes. But the decision to do entire departments worth of layoffs because the stonk is going on a dive after some exec's pipe dream didn't play out? That's C level. And these fuckers don't get to feel the consequences.

If a business doesn't work out, there's no reason not to kill an entire product line.

Companies can and should take risks, but should also be open to kill product lines if they do not work out.

I have also axed execs on boards that I have been a part of if I have seen a persistent issue in performance that is directly attributable to their issues.

---------

Tbf, I think you are in Germany or Western Europe, so I cannot speak to how Engineering Management is done there in the software industry versus the US.

If I was paying German level TCs, I'd probably be more forgiving.

jasonlotito

14 hours ago

> If a company feels an employee is not being productive, they should be allowed to let them go.

That's not what layoffs are. In fact, your belief is not productive. Why are you waiting for layoffs to get rid of people who are not being productive? Why are you supporting people being unproductive?

> You need a way to get rid of dead wood, otherwise you would be too afraid to grow and hire when you need to.

That's not what's happening. Generally it's a result of leadership failing to do their job, misusing resources, and needing to compensate for that in the market.

Layoffs are signals that the leadership is not being productive. Full stop.

bastardoperator

12 hours ago

There is zero top down accountability from supposed leaders these days. They will happily throw employees under the bus to cover for their own mistakes.

baggy_trough

12 hours ago

Accountability is supplied by the market. That is, unless we are talking about a low-accountability sector like government or non-profits.

tharmas

14 hours ago

Ah yes, the employee is a Cost, not an asset. Got it.

dkxjxb

14 hours ago

I used to think like this. However, this kind of argument is only good if the basics are met. We have enough technological advancement in America that given strict immigration controls we can ensure the median American is able to raise a family of at least 2 kids while holding an entry level job (of which their should be plenty). Anything else is morally wrong, and those pulling the levers of power are evil.

We’re seeing the opposite and the wealth gap is increasing because the elites running our society see us as cattle, not countrymen.

The current point of our country is to increase GDP (which is a fancy way of saying make the rich richer, given the current wealth gap). It should be to enrich the lives of all its citizens.

daedrdev

13 hours ago

We dont build housing anymore so costs go up. That has little connection to our ability to afford living well

wat10000

14 hours ago

I completely agree with the goal, but I don't think that making it difficult to fire employees is a good way to achieve it. That's essentially funding welfare with a randomized and hidden tax on employers. It would be better if firing for performance was reasonably easy, but new jobs are plentiful and welfare programs allow a reasonable life between jobs. (And, of course, for those who can't work.)

bpt3

14 hours ago

> We have enough technological advancement in America that given strict immigration controls we can ensure the median American is able to raise a family of at least 2 kids while holding an entry level job (of which their should be plenty).

What evidence is there to support this? Kids are expensive, and entry level jobs do not produce enough value to generate an income that can support several people.

> Anything else is morally wrong

Why?

beachtaxidriver

13 hours ago

But it used to.

In the post war boom it definitely used to produce enough value to support several people.

And we're far wealthier in aggregate now than before, it's just distributed badly now.

tock

13 hours ago

Thats because entry level jobs provided a lot of value back then. It's just harder these days with the amount of automation and tech advancement.

I guess one way is to increase the min wage a lot. But I am guessing employers will just pivot to hiring even less.

alephnerd

12 hours ago

In the post war boom, most of those entry level jobs that could support an entire family were limited to white (itself a heavily restricted term back then) men with a union membership.

Heck, unions themselves were heavily racialized back then.

On top of that, housing was segregated either overtly via race restrictions or covertly by overwhelmingly denying loans or sellers colluding to not sell to "that" family.

You'll hear plenty of these stories from older Black, Italian, Greek, Armenian, Chinese, and Hispanic Americans.

telotortium

10 hours ago

That’s true enough, but at that time whites were 90% of the US population, so there was arguably enough wealth then, definitely enough wealth these days, to extend entry-level jobs to the remaining 10%. When 40% or more of your population is descended from post-1965 immigrants, the competition for good jobs goes up a lot in most industries, unless enough economic growth makes up for it - and even with growth, housing scarcity is almost always an issue.

bpt3

11 hours ago

Wages from a single entry level job absolutely did not support a family of 4 or more in the 1950s and 1960s, let alone as comfortably as you are probably imagining.

These delusions need to stop, because it makes it impossible to have meaningful conversations about the many actual issues that do exist. I would expect people here to be better informed, but that seems to be less and less true over the last couple years.

And yes, the wealth distribution is more uneven now than it was in those days, but not to the point that you are claiming.

johanneskanybal

14 hours ago

If you’re in tech in us you’re also compensated based of that, it’s not exactly the same math everywhere/anywhere. Also we’re at a site which is the Mecca of meritocracy and it’s useful to remember that part too.

alfalfasprout

13 hours ago

You do need to justify them to investors. Layoffs are, historically, a sign of weakness and has an effect on growth.

Companies need to be strategic with the messaging so as to not scare shareholders. Hence, they use "strategic refocusing on AI" or "operating leaner and faster" as buzzwords to characterize the layoffs.

In reality, in the last couple years companies are just trying to slash costs however they can because real sustained growth is highly uncertain.

ikrenji

13 hours ago

these companies are breaking the social contract. the society allows them and tolerates them making billions in profit as long as it's shared with the public in the form of good jobs. if you remove the latter part from the equation what's the point of these companies anymore? people are not gonna put up with this and something is gonna give sooner or later.

bpt3

10 hours ago

Society "tolerates" them because they have plenty of people willing to voluntarily give them money which totals billions of dollars for the bigger companies.

Jobs are a byproduct, not a hard requirement for a company to function, because the point of a company is to offer a service to customers, not to act as a jobs program for a town, state, country, or region.

pmarreck

14 hours ago

> If a company feels an employee is not being productive, they should be allowed to let them go.

Even if they feel they ARE being productive, they should be allowed to let them go. The ultimate point of a job is not to get paid, it is to produce work that accomplishes a goal set by the employers. So if they change those goals for some reason, then the letting-go should be allowed.

I really wish there was some sort of UBI to disincentivize clinging to a near-useless (in terms of ultimate goals) job. Heck, just making unemployment not contingent on getting fired (another perverse incentive) would be an improvement.

platevoltage

12 hours ago

Decoupling healthcare from employment would also be an improvement. My mom would have retired several years earlier if it weren't for my parents relying on the county government for healthcare. We don't have UBI, and unemployment is very limited. Getting laid off on a whim with no warning can literally be a death sentence.

I know I post Star Trek analogies a lot, but if Chief O'brien got laid off from Deep Space Nine because of cost cutting, he would be fine. (actually, he'd probably be much better off). We don't live in this world. We live in a world where losing your job can kill you.

pmarreck

9 hours ago

I unfortunately agree on this. My healthcare is provided by my partner and it forces her (more or less) to stay at that job.

glimshe

14 hours ago

This is multifaceted question. I agree with what you're saying, but let me add something.

Corporations are greedy and let go of many good people. But they also let go of many people who deserved to go. It's really hard to get rid of bad people, even in the US. But you wouldn't believe how many bad people were in big tech because of the COVID over hiring.

I've seen dozens, if not hundreds of people, who went to FAANG and added next to no value. As a manager in one of these companies, I had to deal with a mix of great people and many who were absolutely taking advantage of the company. I could write a book about it. Good for them, but it's not surprising that the party would end someday.

fifticon

14 hours ago

but who takes responsiblility for hiring those 'bad' people in the first place.. I am not saying you should't get rid of them, but the issue makes me think of that kind of people, who for some reason always think that it is someone other than themselves who must adjust and adapt.

glimshe

14 hours ago

Those who overhired should have been fired, I agree. It's incredible (or not) that the CEOs weren't eliminated.

Aurornis

13 hours ago

Can't speak for every company, but most companies I've worked for with detailed hiring practices would evaluate the long-term outcomes of people that hiring managers chose.

If someone hired a lot of people who had to be laid off later, they would get more supervision and review of future hires.

grogenaut

14 hours ago

The people who hired them may be long gone by now.

jayd16

14 hours ago

So like, what's the argument here? You felt FAANGs over hired and then had a good round of layoffs so every layoff is good and justified?

Nimitz14

10 hours ago

There's still too much fat, or rather people who just add net negative value. My org would benefit from firing easily 50%.

eli_gottlieb

14 hours ago

> It's really hard to get rid of bad people, even in the US.

Could you explain why it's hard? I've never seen anyone run into any kind of difficulty letting go an at-will employee. The manager can do so at any time, for any reason or no reason at all.

wmeredith

14 hours ago

I'm not the poster you were responding to, but I have some experience in this. I am an engineering manager at medium size US company. If I want to fire a poor performer it requires a couple months of detailed documentation on their poor performance, and that's just so I can get them on a PIP (performance improvement plan). That's another 30-90 days. The PIP takes time to prepare and performance during the PIP also has to be rigorously documented.

This has been my experience at two different companies in multiple cases with egregious underperformance. I suppose if an employee assaulted/harassed someone or was doing something else outright illegal like theft or embezzlement, they would be shown the door immediately. But if someone is half-assing their work and dragging the team down, everyone has to put up with it for months as they get second chances, micromanagement, and other special attention before they can actually be let go.

I think it's due to the litigiousness of the US culture. Yes, US companies can fire people at will, but they can also file lawsuits at will, which are costly (time+money) no matter the outcome.

ryandrake

14 hours ago

This has never made sense to me. In the US, you can fire someone because you don't like that they wore a green shirt! As long as it's not for one of those specific, enumerated forbidden reasons, companies have total freedom to hire and fire.

I was fired once, and there were no PIPs, no documentation, no warning, no nothing. Just "We aren't doing this work anymore and don't need you" and that was that.

Aurornis

13 hours ago

> In the US, you can fire someone because you don't like that they wore a green shirt!

And if that employee can show that other people were allowed to wear green shirts without being fired, they can use that to support an illegal discrimination claim against the company.

The reason it takes effort and documentation to fire people is because companies want to have a uniform set of rules that are applied equally to all employees. They also want documentation to support the firing. Having a consistent process, applied equally and with supporting documentation discourages people from even trying to bring frivolous lawsuits.

Having additional process is also a check on managers. Some managers try to fire anyone they disagree with, dislike, or even to do things like open headcount so they can fill it with a nepotism hire. Putting process in place and requiring documentation discourages managers from firing people frivolously and adds another level of checks and balances to discourage gaming the system.

krainboltgreene

11 hours ago

> And if that employee can show that other people were allowed to wear green shirts without being fired, they can use that to support an illegal discrimination claim against the company.

That's not at all true.

makr17

6 hours ago

A former manager once told me

> If you get fired, and didn't see it coming, that's a failure in management. You should have _plenty_ of explicit signs of where things are heading, starting in 1:1 and culminating in a PIP.

Edman274

14 hours ago

If you happen to wear a green shirt on St. Patrick's Day, then maybe you can sue and say that you were fired because your boss is bigoted against Irish Americans. No one ever comes right out and says that they're firing someone for an illegal reason, so the PIP and the rest of that song and dance is to try to prove that it was above board for a potential lawsuit, which companies seek to avoid at all costs.

anal_reactor

11 hours ago

If firing a bad performer is so difficult at so many places, then it must be a feature, not a bug. Otherwise the free market would've found a way to change this.

The thing is, everyone is judged by how much inefficiency they remove. This implies that for anyone to be successful, there needs to be inefficiency in the first place. This means that everyone has incentive to create inefficiency, which can be removed at a later time.

Imagine you have ten workers. They say "if we do ten things then the system will be much cheaper to run, but further improvements will be minimal". The most efficient thing to do would be to tell them to work on all things ASAP in parallel, but this means that you'll deliver a lot in the first year, and then very little later on. This makes you look bad as a manager. A much better approach is to artificially delay the tasks and force them to be sequential, one task a year. This means that from outside perspective, your team seems to be consistently delivering added value through entire ten years.

Moreover, imagine that you value all ten employees, but one day the upper management tells every team to fire at least two workers. At that point you'll wish you had two extra guys sitting and doing nothing because you'd be able to fire them without putting your own deliverables in danger.

Not to mention that as a manager, your prestige is proportional to the number of people below you. This means that you have incentive to create bloated teams that sit and do nothing, because having five good and five bad employees looks better on paper than just having five good employees.

In most companies, information flow is extremely opaque. If you're particularly unlucky then your direct supervisor might know your performance is bad, but other than that, zero chance of anyone noticing. And even your direct supervisor might either be too busy, lack knowledge, or simply not give a fuck, because he understands the business value of artificial inefficiency.

zdragnar

14 hours ago

I worked for an agency company (mostly T&M contracts) that went through a round of layoffs almost entirely because they wanted to be "like a family" and the managers didn't let poor performers go. I think they ended up cutting something like 10% of their workforce, including underperformers and all new hires, in an effort to get cash flow moving in the right direction again.

It was incredibly rough- a lot of people who weren't being told they needed to shape up or ship out were instead simply told they're being shipped out. The only upside is managers got better about supporting employees later on who weren't performing, including putting people on PIPs rather than letting them coast.

stronglikedan

14 hours ago

It depends on the size of the company as to what needs to be documented to let someone go. SMBs can let people go much easier, and the smaller, the easier.

But what you cannot do in any circumstance is let people go "for any reason". There are laws against that at any size, and you are looking for a lawsuit if you give a reason.

It's best to just tell them their position has been eliminated due to restructuring (has to be provable if you're a big company), and give them no reason beyond that. If you don't give a reason, they have nothing to bring a lawsuit for.

In summary, reasons are not always required, but are always a liability.

earthnail

14 hours ago

There are internal reasons as well. Letting go of people can be highly disruptive and create uncertainty in your team. It’s a very unpleasant job that can also go wrong, especially if you have to fire loads.

Then there’s the perverse incentive that bigger teams usually equals a promotion. So if you’re the honest manager who manages a tight team and fires people, you won’t get promoted as often.

Top management knows this, of course. To sidestep these misaligned incentives a company-wide one-time layoff is really effective.

mikestew

14 hours ago

And the company can be sued at any time, for any reason or no reason at all. That does not mean the plaintiff will win, but against deep enough pockets, it can be worth a try. PIPs take time, and HR isn’t about to let you skip them, and bad employees know they’ve got six months to spend their workday looking for a new job while not doing their current job. I’ve worked at those companies, and sometimes managed at same, and when OP says they have stories, I believe them.

lesuorac

14 hours ago

Which is why severance payments in fang are tied to not suing the company. If that works when you lay of 10% of the company why doesn't it work when you want to fire 1 individual?

You can definitely argue it's not fair to pay somebody extra for not doing a job but the alternative seems to be you keep paying them even more to keep not doing a job (and possibly doing negative work).

Rather than put somebody on a pip for x months just offer them x months of salary to quit. Same money, same work done.

zdragnar

14 hours ago

You don't give people severance when you fire them, you only give them severance when you lay them off.

There's a legal distinction which impacts whether or not the employee is eligible for unemployment benefits, among other things.

onraglanroad

14 hours ago

I don't.

The company could be sued by a non employee too. What difference does that make?

And if your company procedure requires a PIP, then you do that. Again, where's the difficulty?

Nothing you've said sounds difficult in the slightest. It's following procedure.

culll_kuprey

12 hours ago

> Nothing you've said sounds difficult

It’s difficult to stop lying sometimes

nkozyra

14 hours ago

It would not be worth a try if not for a very legitimate reason. Being laid off and mounting a civil case against deep pockets doesn't sound like a recipe for success.

reactordev

14 hours ago

>But you wouldn't believe how many bad people were in big tech because of the COVID over hiring.

There’s no correlation. They hired expecting a certain type of growth. They fired because of AI. The narrative that they were getting rid of bad workers was their excuse, not the reason. Many great engineers got let go. Many project managers that had been with the company through ups and downs. One guy was let go after being poached from a FAANG after his 3rd day. So don’t say anyone deserved it.

ahtihn

13 hours ago

Post-covid layoffs happened before ChatGPT, so it's certainly not because of AI.

End of 0 interest rates is the more likely reason.

tharmas

14 hours ago

I heard that the purpose of over hiring during Covid was to hoard talent. That is, to prevent another company from hiring that talent.

jayd16

14 hours ago

Games are a deep pipeline. Technically they would be looking at cost and revenue projections 3-5 years out, not this year or last year.

That said, I think its completely justified for union bargaining to push back on the idea that its the emplpoyees that should burden that problem.

JumpCrisscross

11 hours ago

> Actually-healthy companies cosplaying as struggling companies, as an excuse to justify layoffs

This is a negotiation. You’re seeing one side message.

The union didn’t have a say in whether EA got acquired. But it does have the ability to make it a mess. Part of that ability is in public messaging.

So you’d expect to see , if the union is savvy, public grandstanding and threats paired with private negotiations for better terms for union members, whether that be immunity from lay-offs or some other wins.

echelon

11 hours ago

I don't know where to attach this comment.

This isn't about PE juicing the company and doing layoffs.

This is about transplanting and nurturing a lucrative industry into a former Petro state.

This is sowing the seeds of a prosperous, post-oil world. It's an investment in the future as the world is changing.

This will look more like Lenovo and Thinkpad North Carolina than a PE shake down and gutting.

The jobs will not evaporate, but they will absolutely start cross-training engineers in the Middle East and building up new talent there.

JumpCrisscross

10 hours ago

> jobs will not evaporate, but they will absolutely start cross-training engineers in the Middle East and building up new talent there

If this is what the union fears, this is the moment to negotiate safeguards.

leetharris

14 hours ago

This is the nature of public markets. Not everything should be public. In fact, MOST things should not be public. Because being public forces accountability and liability to shareholders in a way that is completely unlike being private.

A company can be successful by most metrics, but if certain trends are not heading in the right direction, then faith in the stock drops, employee compensation goes down, future investments become dicey, etc.

This is the nature of public companies. This is why they don't want to be public anymore.

screye

13 hours ago

> as an excuse to justify layoffs and other activities that transfer wealth and power from employees to management and shareholders

Video game employees (programmers) are famously overworked, layoff prone and have little say in executive matters. I can't imagine how PE could make things worse.

The video game industry has been in an odd place for a while. The 2020s haven't produced many reliable AAA hits.

manoDev

13 hours ago

Salaried workers sell their time in advance with promises of promotions, bonuses or stock in the future.

So what (public) companies do is over hire during growth, then lay off later to transfer the value created by these workers to shareholders. Rinse, repeat.

gigatexal

12 hours ago

because investors think things can and must go up and to the right and at ever faster rates or the public stock price will fall.

this idea is silly and unsustainable if you think about it just for 2 seconds.

ActionHank

12 hours ago

Won't somebody please think of the executives?

Eric_WVGG

14 hours ago

EA is about as successful as it is possible for a videogame company to get. There's a finite number of gamers, hours in the day, and cash that those gamers can spend, and EA is getting a healthy chunk of it.

If the point of a corporation is profitability and good product, they had that.

But if the point is growth, then all that leaves is branching into other verticals, which leaves… movies and gambling?

loving that late stage capitalism!

underlipton

8 hours ago

Conspiracy theory: they are vulnerable. Almost everyone is, because almost everyone is party to the credit/money-printing grift that has kept markets from collapsing since (depending on your perspective) 2015/2019/2022. Especially the big, "healthy" companies.

They're going private because it would allow them to mask their losses in a coming recession.

yunyu

13 hours ago

As a shareholder of many companies, I would be disappointed if the management team made decisions that disproportionately benefited employees at the expense of other non-employee shareholders.

RobotCaleb

13 hours ago

Yeah, because you as the shareholder are worth more to the company and society than the people at the company.

terminalshort

11 hours ago

Considering he paid to be a shareholder, and the company is paying the employees to be there, that makes sense.

yunyu

12 hours ago

The goal of most companies is to maximize returns to shareholders, not society or employees. If it wasn't that I wouldn't have invested.

bcrosby95

11 hours ago

It's part of the social contract. Corps and limited liability don't have to exist - they aren't some natural thing, they are something we made up because its useful to society.

Once it stops being useful we can axe them.

RobotCaleb

11 hours ago

I'm not saying that you're wrong, just implying that it's not right.

andrepd

11 hours ago

Which is why—to invoke a cliché—the problem is the system, not individual people doing what benefits them inside the system.

siliconc0w

11 hours ago

It really doesn't seem like you should be able to buy a company with debt then transfer the debt to the company to now pay off while also paying yourself hefty management fees and carry.

Basically everything is now owned by PE due to this effective unpatched vulnerability in our finance system.

8f2ab37a-ed6c

9 hours ago

It's not free money, because you now have to figure out how to service that massive debt for years to come, which is non-trivial. That's a lot of cash flow that gets redirected from R&D and other efforts.

In EA's case the allegation is that the LBO was just a way to circumvent the current administration from preventing the deal, since there are American interests involved in it.

mcmoor

4 hours ago

The fools are the people who loans you that money, and they deserve to be fleeced. Unless they actually get back their money, which by this point means you're running a professional liquidation service. It's regrettable that the original owner agreed to liquidate their company, but it's their right and there's nothing wrong with that.

swiftcoder

11 hours ago

One would think the financial sector would be wary of infinite money glitches, but apparently everyone is onboard with this one

bcrosby95

11 hours ago

The financial sector companies involved are first in line if it goes bad. They don't care if the company survives as long as it has enough assets to sell off to get paid.

nickff

10 hours ago

The company would have to be severely undervalued (or perhaps perceived to be severely mismanaged) for this to be the case, which seems strange to me. Then again, the typical PE strategies (loading the company with debt and cutting investments in future products & services) also seem like very bad business strategies. I really don't understand why anyone would loan money for a buyout, or buy a (share of the) company which had recently been through it.

nickff

11 hours ago

Leveraged buy-outs (LBOs) must be profitable for the investors backing them (or else I'm sure they wouldn't), but I agree that it is very strange, and I really don't understand how this could be the case.

nonethewiser

12 hours ago

Video game unions are such an interesting case because the worker is very skilled and the skills are highly transferable. This isn't a situation where you only know how to mill steel and there is only 1 steel mill around. You can stay and fight to unionize or you could just go get a better job right now. The fact that people stay speaks to how passionate they are about the industry, but also how willing they are to settle for less.

NewJazz

12 hours ago

There are absolutely firm specific technologies in our industry, you're metaphor is pretty naive IMHO.

Maybe everyone uses the same engine in video games, but I doubt it.

ls612

11 hours ago

Heh with the dominance of UE5 this gen it isn’t actually too far from that.

teamonkey

11 hours ago

In theory, yes, it’s true, the skills should be transferrable, but in practice it’s often hard for those skills to be recognised by employers outside the games industry.

The right words don’t appear on the resume. Software that the recruiter has never heard of and none of ones they have, job titles that don’t match those in other sectors and roles that seem to straddle more than one, different working practices, different challenges, different expectations, different measures of reputation and success. No recognised professional qualifications or certifications.

The reverse is also true, of course.

givemeethekeys

10 hours ago

Engineers and artists who work on games are generally well-respected outside of gaming. The big roadblock are recruiters who, for the time being are being replicated by AI, but hopefully soon, the AI will learn to recognize talent in a similar environment much better than today's recruiters.

pyrolistical

12 hours ago

Even if you are highly skilled and hireable, you could still benefit from a union.

Paying another to advocate for you can be measured by ROI.

8f2ab37a-ed6c

9 hours ago

I'm actually surprised that unions in games exist at all. If you've ever hired for a studio, the number of talented people out there who dream of working in games for peanuts is astounding. You have practically infinite supply of dirt cheap talent that knows their craft and will happily scab to finally earn any sort of living doing what they love.

advisedwang

10 hours ago

That is the theory of how labor markets should work.

However whatever the cause, in practice even the BEST video game developer jobs out there are still low paid, full of crunches and low on autonomy. The union drive is imagining that the whole sector can be uplifted.

8f2ab37a-ed6c

12 hours ago

The industry is not in a state where you can just go and get a better job right now. We’ve had three years of relentless layoffs and studio closures, worse than at any other time in history. There’s nowhere to go and US employers in games are disappearing by the day.

dlock17

11 hours ago

They're suggesting the video game workers get a better job outside of the video game industry, as their talents would be better compensated elsewhere.

I agree as this is the main reason why I do not work in the video game industry.

I would love to work in it like many others but seeing friends get chewed up and spat out has dissuaded me over time.

nmeofthestate

11 hours ago

> There’s nowhere to go and US employers in games are disappearing by the day.

It's an apocalyptic picture that's rather at odds with the unions claim that EA is doing fantastically.

teamonkey

10 hours ago

Not at all, this is exactly what the unions are saying. EA is firing US employees despite being profitable. When they need to rehire again they’ll do it in countries where the wages are lower.

See also: Microsoft

8f2ab37a-ed6c

11 hours ago

There are a few employers who have effectively guaranteed revenue in perpetuity through what's known as "forever games".

EA's sports division prints money. Valve prints money. Call of Duty prints money. Valorant/League print money. Fortnite prints money. Roblox prints money. Their products have been around for 10-20+ years and will seemingly never die.

But that's not representative of the industry as a whole, and is not representative for the average game dev. See https://www.matthewball.co/all/stateofvideogaming2025 and others.

The other bit to notice about EA in particular is that its share price has been flat for the last 7 years, they've continuously failed to figure out how to change that, which is a problem. Selling and layoffs are a lever to get out of that hole, although it remains to be seen how great of a move it turns out to be.

jmyeet

12 hours ago

Private equity is cancer. It should be illegal. It adds nothing of value and just hollows out a company for short term profit-taking while hoping nobody notices how your restructure is laden with exploding debt.

This will kill EA, period.

IIRC I read the other day there are more private equity firms in the US than McDonald's now. We produce nothing but weapons now as well as financial chicanery like private equity.

BeetleB

12 hours ago

> Private equity is cancer. It should be illegal. It adds nothing of value and just hollows out a company for short term profit-taking while hoping nobody notices how your restructure is laden with exploding debt.

I would recommend listening to the How I Built This podcast. A number of interviews are with people whose companies were acquired by private equity. You can hear the founders' perspectives on private equity. It often doesn't match what you say. And I think in most cases, the brand is still around and doing well.

next_xibalba

13 hours ago

All I ever hear about it how hellish it is to work in the video game industry. Why do people stay? How do companies retain employees?

xandrius

11 hours ago

You really cannot understand why someone would want to be part of a team creating something they love (or used to love) as kids + all the joys of programming times 100?

I personally don't understand people who work for blockchain, or as cashiers, waiters, customer support, etc.

I tried those jobs as there is no deep-rooted love of anything around those, just a job, and still a ton of people do it.

On the other hand, working on video games, despite being often underpaid, often full of crunching and sometimes monotonous, is something I do understand. It's literally as close as "follow your dreams" go but for programmers who are into games.

lII1lIlI11ll

9 hours ago

> It's literally as close as "follow your dreams" go but for programmers who are into games.

I mean, I could understand dreaming about working for (old) Blizzard, id, Westwood, Looking Glass, Valve, etc. but EA?! Really?

xandrius

7 hours ago

I wasn't specifically speaking of EA but I guess many people don't necessarily know it for the bad stuff they pull off but rather for Fifa and such? Even though I would never touch them with a 2m stick, I still fondly remember them for "EA sports, it's in the game" era.

ClimaxGravely

11 hours ago

Worked at many game development studios, only one truly bad experience. Granted I probably got extremely lucky but there are good studios/jobs out there.

My current company is a 4 day work week, fully remote and good pay. I feel I get more work done in a 32 hour week than I did at another company where I had hit ~90 hour weeks a few times. I'm not going back and fixing code I wrote while sleep deprived.

Also worked outside games in STEM, education and a couple startups. I wouldn't say they were particularly better.

a13o

12 hours ago

Most people don’t stay. They burn out and find work/life balance in other fields.

Once they realize how depressed their wages were in the games industry there’s no hope of getting them back.

uyzstvqs

12 hours ago

That applies to AAA games, where you make awful games for awful companies. Being an indie dev is great, and you can make millions by yourself if your game gets popular.

Recent example: "Megabonk" was made by a solo indie dev in a few months. It has reportedly sold around 2 million copies at $10 in 1 month.

ericksoa

11 hours ago

This. Working at EA punching out the next version of Madden, featuring roster updates, UI changes, and tinkering with a few settings isn't exactly work designing the new Unreal engine.

Your average Java CRUDster could probably do a lot of that work. Gamedev isn't the black art it used to be.

tasuki

11 hours ago

If it was that easy all those EA employees would go on to release their hugely successful games instead of working for EA...

sandspar

11 hours ago

Thousands of indie games die on the vine for every one breakout. It's like saying you can make millions of dollars if your acting career takes off.

nonethewiser

12 hours ago

It's one thing to stay despite the tough conditions because you love games. It's another thing to stay and expect things to change. The act of staying is precisely the thing that is enforcing the bad conditions.

BeetleB

12 hours ago

The same reason people work at Tesla, I imagine.

thrance

13 hours ago

It is hellish because there are a lot of people who want to work in video games. Workers having to compete lead to bad working conditions, as employers push the boundaries of what they can get away with while still finding enough workers to fill their positions.

nonethewiser

12 hours ago

For sure. Which is why it's weird that someone would stay and expect things to improve. As we've made abundantly clear, the willingness to stay is precisely why the conditions are bad.

gdulli

12 hours ago

I had good experiences, but that's not fodder for loud vanity blogging so the world doesn't hear about it.

kg

11 hours ago

For some skill sets the non-games options to work in are comparatively 'soulless' or 'soul-crushing' (not my words, but ways I've heard people describe it). For example:

If you're a literature expert, do you really want to do copy-editing for doordash when you could be writing interactive narratives?

If you're a UI designer, are wireframes for the latest AI chat app even 25% as exciting as designing the HUD for a new video game?

And then some skill sets are just not really transferable at all. Game design leans on skills that are transferable but 'game designer' doesn't really map to other fields at all, and it is a real specialization that some people have decades of time spent honing.

doctorpangloss

13 hours ago

the industry is vast and there are many experiences. It's certainly not hellish for the 3 guys + contractors who made Silksong, or for Lucas Pope, or for many of the people working at huge mobile game studios.

EA makes games with numbers in their names. They do not take on a lot of risk, which means "anyone" could do it. So they have to work very, very hard. This is NOT a complicated idea.

Razengan

10 hours ago

I wonder if their FPS games will be used to train real life killbots

tasuki

11 hours ago

> EA employees and the Communications Workers of America union have issued a statement against the proposed private acquisition of the company, claiming they were not represented in the negotiations and any jobs lost as a result would "be a choice, not a necessity, made to pad investors' pockets".

Are the employees claiming the company will be more profitable without them?

What a disingenuous thing to put forward! I'd have expected the employees to claim that letting them go will tank the value of the company.

tasuki

11 hours ago

> We are calling on regulators and elected officials to scrutinise this deal and ensure that any path forward protects jobs, preserves creative freedom, and keeps decision-making accountable to the workers who make EA successful.

If it's the workers that make EA successful, the investors would be stupid to let them go! Not only do they lose these great workers who make the company successful, also they potentially get new competition from them.

> As such, workers have launched a petition in a "fight to make video games better for workers and players - not billionaires".

Afaik the AAA games that EA makes are already plenty bad for the players...

> Effectively, Saudi Arabia's vast fossil fuel-derived state wealth is controlled by one person, which isn't good for human rights, or business either.

Finally something I can agree with in the whole article...

chews

11 hours ago

FTC tried, Trump won, Kushner raised from the House of Saud and the rest is history.

beanjuiceII

10 hours ago

laughable, they need to clean house big time

doctorpangloss

14 hours ago

Games are experiences, all aspects of the experience, such as how the game is made and by whom, is on the table (is “valid”).

That said, the best way to achieve the goals of the article at a studio like EA is make it an issue for the games’ primary audience, 13 year old boys.

The way that comments like these get downvoted shows why these developer union guys, whom I support, have so far to go.

lofaszvanitt

14 hours ago

"EA is one of the largest video game developers and publishers in the world." Yet, it creates zero value. As an added plus EA is a publicly traded company....

jsbg

14 hours ago

> Yet, it creates zero value.

Then why do people give them money?

dunkvg

14 hours ago

What he meant is that company's MO is buying IPs of successful franchises that are dear to many gamers, release 1-2 crappy games on that IP that is filled to the brim with microtransactions which is not well received by the customers (but makes them money), resulting in the death of that franchise. Rinse and repeat for whatever IPs still remain to be bought.

It creates money, but contributes 0 or negative value for the actual gaming industry, unlike other companies like FromSoft that consistently hits the ball out of the park, pushing the envelope on new franchises and new gaming genres. THAT, is creating value.

gruez

13 hours ago

>which is not well received by the customers (but makes them money),

stated preference vs revealed preference, or alternately, the people commenting about games on HN or reddit aren't reflective of the average EA customer.

ceejayoz

12 hours ago

That a heroin addict's "stated preference" is to quit does not mean they secretly want to be a drug addict when their "revealed preference" for something deeply addictive comes around.

gruez

10 hours ago

That argument might work against f2p lootbox games, but that does not explain the "release 1-2 crappy games on that IP that is filled to the brim with microtransactions" phenomena that's described in the GP. Nobody is like "wow this game doesn't have lootboxes? I guess I'm not going to buy it". If someone is buying such a game, to a first approximation they're buying for the gameplay, not because they're addicted to gambling and are buying it to get their fix.

ceejayoz

9 hours ago

Some folks get suckered into a gambling addiction via the buffet, too.

mikkupikku

14 hours ago

There are certainly a lot of people who do actually like their games, but a lot of their revenue comes from a combination of aggressive marketting and that old P.T. Barnum adage. There's a lot of new gamers born every minute, and it takes being burned a few times before somebody learns to avoid EA products.

mrguyorama

11 hours ago

Right, the 15 year old paying for Madden 32 doesn't realize that they could play Madden 08 released on the gamecube and have a nearly identical experience, including literally the same bugs and broken behavior as that game from 20 years ago.

Do people get that? Modern madden has worse oddities. Madden 08 wouldn't allow you to put more than 255 points on the scoreboard. Modern madden will completely break before you can even reach that point.

The animation/behavior systems have the exact same flaw where if you run a play for more than about 20 seconds characters just... shut off. They stop trying to run after the ball carrier even!

The knobs you can tweak on the simulation engine are the same on N64, Xbox 360, Xbox 1 X series X X'er hyper X, the damn Nintendo DS!

No wonder companies are so hostile to emulation. They would rather just resell the same game, sometimes with nicer textures.

dgfitz

14 hours ago

Yeah, it’s like saying Netflix doesn’t create value, or Universal Pictures doesn’t create value. I do not agree with the GP. As far as I can tell, openAI has created very, very negative value as of today, financially.

jayd16

14 hours ago

Not liking Battlefield 6, I take it?

Arwill

10 hours ago

Battlefield peaked with BF3

jjangkke

14 hours ago

i think the union here is overreaching and expectations are unrealistic.

the stakeholders/investors have priority here and they have sold the company to the highest bidder.

at this point anyone participating or showing support behind union is at risk of being profiled and black listed in the industry and not just EA.

its in their collective interest to setup in jurisdictions outside the US where labor laws make the latter illegal but certainly not in many parts of the world and jurisdiction arbitrage makes it a very real probability.

my advice to anyone working at EA or any unionized white collar jobs in this nidustry and relate to keep your heads down and don't post your thoughts in public.

afavour

12 hours ago

> i think the union here is overreaching

I think concern over company ownership is a core responsibility of a union.

> my advice to anyone working at EA or any unionized white collar jobs in this nidustry and relate to keep your heads down and don't post your thoughts in public.

That's one of the strengths of a union: established rules about what is an isn't acceptable, which include your right to speak out.

fair_enough

13 hours ago

Not to be pedantic, but I think you mean "shareholders".

In the context of software, the term "stakeholder" means anyone who will use the project being worked on.

In the context of business, "stakeholder" is an intentionally nebulous term designed to obfuscate who is supposed to be enriched by the actions of the company. Usually that term is a way of deceiving people into thinking the company's goal is to serve "the community", when in reality it's serving the shareholders at the expense of the well-being of the community.

Sometimes, it's a way of deceiving the shareholder for the benefit of the executives, e.g. some "DEI" bullshit that hurts the community, the shareholders, and most of the employees just to feed the HR department and the C-suite's insatiable lust for power.

EDIT - I'd like to add a comment about "shareholder" and "stakeholder" sounding so similar, but in practice meaning two mutually-incompatible things:

This is by design. You're not supposed to be conscientious of the difference in meaning.

You're supposed to hear "shareholder capitalism's kinder, gentler successor", not "corporate-owned feudalism".

hollerith

13 hours ago

>Usually that term is a way of deceiving people into thinking the company's goal is to serve "the community"

It can also encourage workers to consider the needs of customers and suppliers, the ignoring of which will tend to eventually harm the company and its shareholders. I.e., it is not always a weasel word.

fair_enough

12 hours ago

Like I said, that's the engineering context of the word.

In business managerial side of operations, "stakeholder" is definitely a weasel word.

The word "stakeholder" in "stakeholder capitalism" as used by the World Economic Forum literally means "every single person on Earth". Unless you think Klaus Schwab also considers the possibility of life in the Andromeda Galaxy, it doesn't get anymore nebulous than that. The word "nebulous" describes something cloudy and ginormous- like a nebula.

I'm not trying to give you a hard time, but the rarity of the exception justifies the rule.

AlexandrB

13 hours ago

It's almost always a weasel word because if you meant customer you would just say customer. Saying "stakeholder" permits a level of ambiguity about whose interests are being represented.

hollerith

12 hours ago

If I mean "customers, suppliers, neighboring businesses, employees, their families, investors and anyone else affected by my decision", should I write that out or should I just write "stakeholders"?

fair_enough

10 hours ago

Only if you earnestly give a rat's ass about all of the above.

Again, you're thinking of an "agile" stakeholder- not a "stakeholder capitalism" stakeholder.

Why is this so difficult for you to grasp?

hollerith

10 hours ago

>Why is this so difficult for you to grasp?

Because I personally haven't come across writings or speakings AFAICR in which "stakeholder" is used as a weasel word.

I will avoid the word now that I've had this conversation.

jayd16

14 hours ago

If pushing back against a cash out is overreaching then what would be a valid union power?

wahnfrieden

14 hours ago

OP is anti-union, so, likely nothing.

Their points are cause for unions to organize across companies and industries (though solidarity strike action is illegal in the US because it's effective). But they take for granted that employers should have their way and that employee interests are best served by appeasing owners.

ElevenLathe

6 hours ago

To be completely clear, EA is not a union shop. UVW (the CWA local putting out this statement) is a direct-join industry wide union. They have no contract or direct relationship with EA, though it seems (unsurprisingly) that some EA employees are members. As a legal matter they have no more relation to the EA deal than your local library does.

So yes maybe they're overreaching, but there's also very little for them to lose. Presumably they feel their labor power (unconstrained by the usual NLRB rules as this is not an NLRB-recognized bargaining unit) gives them some sway in the matter, but if not, they're not out anything.

Seems like a smart enough thing to try. If it doesn't work, they organize some more and try again later with better odds.

fidotron

14 hours ago

> the stakeholders/investors have priority here and they have sold the company to the highest bidder.

At EA a lot of the long term employees had significant stock holdings too.

tsimionescu

10 hours ago

How significant? 5% of the company each? 20% of the company together? If you just mean they got a few hundred thousand dollars out of the sale, that's not "significant" at the company level. Significant stock ownership means you have a real say in the company's direction.

regularization

13 hours ago

> ny advice to anyone working at EA or any unionized white collar jobs in this nidustry and relate to keep your heads down and don't post your thoughts in public.

I'd note that the workers creating the wealth and doing all the work are among the vanguard of workers doing the best in the world, but the advice given sounds similar to advice that could have been given to slaves on a plantation, in case the masters be upset.

The workers do the work and create the wealth of these companies. The apparatus over them is just parasites sucking their labor off into profits.

Whatever the immediate strategy should be, organizing, educating and agitating is the order of the day, for anyone with any sort of backbone or self-worth (of course narcissistic notions to consider oneself a genius and everyone else is dead wood, as someone put it here, has been encouraged).

tempusalaria

13 hours ago

Most of EA’s revenue comes from franchise games that are way below typical AAA standard. EA’s value is from IP not talent

nonethewiser

12 hours ago

Might be a bit hasty to compare them to slaves.

It also doesnt make senes that someone who creates all the value wouldnt just leave and capture all the value themselves. It's not like they're being forced to work for the parasite. Oh wait - maybe thats where the slavery comes in.

swiftcoder

11 hours ago

> It also doesnt make senes that someone who creates all the value wouldnt just leave and capture all the value themselves. It's not like they're being forced to work for the parasite.

If they have a mortgage, kids in college, or just need routine health insurance coverage... they kind of are being forced to work?

Capturing the value yourself requires assuming a lot of risk, and most individuals can't access the kind of capital investment that a corporation can attract.

wat10000

12 hours ago

The stakeholders/investors have nothing without the employees. The owners may have legal control of the company, but they can't force the company's employees to come to work, and their investment is worthless if that happens. That gives the employees some power here. There's nothing wrong with using it.

ericksoa

11 hours ago

Sometimes layoffs are designed to give air cover for execs that want to get rid of "networks of detractors" who are causing problems, like how in a game company there might be a network of influential luddites who oppose use of LLMs over ideological reasons, even if the use case is good.

IMO those are virtuous layoffs, sometimes you need to clear your company culture of troublemakers who are getting in the way of company strategy.

antonymoose

10 hours ago

I suppose there are firms large enough to make that work.

Having worked at a smaller firm with 15 SWEs that employed this strategy, they lost their 3 critics and proceeded to lose another 8, myself included, due to loss of confidence in leadership in the immediate (3-6 months) of the initial culling.

It’s a bold strategy, Cotton.

culll_kuprey

10 hours ago

That’s cool, they can just hire Indians to put out a shittier version.