We need more calm companies

🌈 Abstract

The article discusses the recent tech industry layoffs, the impact on employees, and the author's perspective on building "calm companies" as an alternative to the "frenzied" corporate culture.

🙋 Q&A

[01] The Impact of Tech Layoffs

1. What are the key impacts of tech layoffs on employees?

• Layoffs can shake the very foundation of an employee's life, causing an existential crisis and feelings of guilt and shame
• Layoffs are especially hard on parents who are the primary income earners for their families

2. Why does the author find the recent tech layoffs particularly cruel?

• The author notes that the layoffs come after companies aggressively hired during the pandemic, only to cut 20-30% of their workforce when the market conditions changed

3. What does the author attribute as the root cause of the recent tech layoffs?

• The author states that companies followed the wrong incentives, with investors flooding the market with cash and pushing for aggressive hiring, prioritizing growth over profitability
• When capital dried up, companies started "thrashing" and resorted to hasty, unthought-out mass layoffs

[02] The Concept of a "Calm Company"

1. How does the author define a "calm company"?

• A calm company's purpose is to provide exceptional service to customers while simultaneously improving the lives of its employees
• By default, a calm company is profitable, which gives it resilience and the financial margin to weather economic storms

2. What are the key attributes of a "calm company" according to the author?

• Profitability: A strong financial engine that provides freedom and the ability to invest in the product and team
• Purpose: A focus on improving lives, providing exceptional service, and creating a nurturing environment for employees
• Sustainable Growth: Mindful and purposeful growth that does not sacrifice culture, quality, or values
• Freedom and Flexibility: Providing team members the flexibility to live well and maintain work-life balance
• Mindful Decision-Making: Making decisions that align with the company's values and do not make life worse or more stressful

3. How does the author contrast a "calm company" with a "frenzied company"?

• A frenzied company is perpetually in crisis, with a culture of impossible deadlines, unrealistic expectations, and managers dumping their stress and anxiety on employees
• Financially, frenzied companies lack profitability and rely on continuous investment or debt to stay afloat, often due to a bad business model and poor margins
• The author believes the path to success is not "grinding harder" but building profitable products that people want

4. Why does the author believe the world needs more "calm companies"?

• The author states that calm companies won't come from publicly traded companies or over-funded venture-backed startups, but from the next generation of small, purposefully built, indie startups with healthy margins