When would tech companies realize that layoffs NEVER increase efficiency? The amount of work getting done is directly proportional to the amount of people at a company, because if a company can increase its work efficiency during normal operations it would have done so already.
Besides, its not just about efficiency, but about scope and use of resources. In economic boom cycles there is more capital to play around with non-essential ideas. When that access to capital dries up, so does viability of keeping extra resources for things that are not essential.
Again, we are talking about how cutting people during regular operation absolutely would not make the team more efficient, not adding people to a project last minute.
Late projects is just a theme used to convey the core ideas, as it is a common thinking/pitfall, but the reasoning of why late projects because later equally apply to initial software estimates.
The core idea is that software cannot be simple divided into “man months”. That is, saying this software will take 80 manhours, and therefore 10 engineers can do it in 10 days, and a 80 engineers could do it in a day. The reasoning being 1. Software tasks are complex and not easily partitioned, and 2. Software projects require a lot of communication and the more people you have the communication channels needed greatly increase. Essentially what happens is when you have too many people, more time is spent communicating what needs to be done and whose going to do it than doing the actual work.
In any case, efficiency is not really relevant because what happens in layoffs typically, is that entire teams/projects/or initiatives are dismantled. So its not about serving the same projects with less people, but reprioritizing whats essential.
That’s not at all my experience of 25 years in Tech both in that industry (Products, Services and even Startups) and others (mainly Finance).
More people (or more time - i.e. overworking) most definitelly do not mean more results and in some case can even mean less results.
If seen departments 3x as large producing less than half the results, and way more so when talking about small teams (in my area 4 senior devs familiar with each other can outproduce a whole department of mid/junior-level devs).
Curiously Tech Startups were especially inneficient, probably because they tended to hire young and enthusiastic people (“With a tendency to run really hard whilst not knowing were they’re trying to get to”) and don’t really have much in the way of software development processes whilst well established (but comparativelly boring) companies hired the kind of people in their 30s or more with families who want a good steady salary, and had well established team structures.
But don’t take my word for it, just read books like “The Mythical Man Hour”.
I think you misunderstood me. My point was if your company/project was already running incredibly inefficiently, cutting more people would not make the remaining people more efficient somehow out of fear, because what caused the inefficiency is still there, you just have more things for each of them to do now.
The way to increase efficiency is to figure out what part of the whole process is causing waste and aim to minimize that, but that is HARD because it requires understanding your process, which is why they just do the lazy thing and fire a bunch of people to appease the almighty shareholders, so that they can say they did something.
When would tech companies realize that layoffs NEVER increase efficiency? The amount of work getting done is directly proportional to the amount of people at a company, because if a company can increase its work efficiency during normal operations it would have done so already.
This is absolutely not true.
This is one of the most well known writings on software. https://en.wikipedia.org/wiki/The_Mythical_Man-Month
Besides, its not just about efficiency, but about scope and use of resources. In economic boom cycles there is more capital to play around with non-essential ideas. When that access to capital dries up, so does viability of keeping extra resources for things that are not essential.
Again, we are talking about how cutting people during regular operation absolutely would not make the team more efficient, not adding people to a project last minute.
Late projects is just a theme used to convey the core ideas, as it is a common thinking/pitfall, but the reasoning of why late projects because later equally apply to initial software estimates.
The core idea is that software cannot be simple divided into “man months”. That is, saying this software will take 80 manhours, and therefore 10 engineers can do it in 10 days, and a 80 engineers could do it in a day. The reasoning being 1. Software tasks are complex and not easily partitioned, and 2. Software projects require a lot of communication and the more people you have the communication channels needed greatly increase. Essentially what happens is when you have too many people, more time is spent communicating what needs to be done and whose going to do it than doing the actual work.
In any case, efficiency is not really relevant because what happens in layoffs typically, is that entire teams/projects/or initiatives are dismantled. So its not about serving the same projects with less people, but reprioritizing whats essential.
That’s not at all my experience of 25 years in Tech both in that industry (Products, Services and even Startups) and others (mainly Finance).
More people (or more time - i.e. overworking) most definitelly do not mean more results and in some case can even mean less results.
If seen departments 3x as large producing less than half the results, and way more so when talking about small teams (in my area 4 senior devs familiar with each other can outproduce a whole department of mid/junior-level devs).
Curiously Tech Startups were especially inneficient, probably because they tended to hire young and enthusiastic people (“With a tendency to run really hard whilst not knowing were they’re trying to get to”) and don’t really have much in the way of software development processes whilst well established (but comparativelly boring) companies hired the kind of people in their 30s or more with families who want a good steady salary, and had well established team structures.
But don’t take my word for it, just read books like “The Mythical Man Hour”.
I think you misunderstood me. My point was if your company/project was already running incredibly inefficiently, cutting more people would not make the remaining people more efficient somehow out of fear, because what caused the inefficiency is still there, you just have more things for each of them to do now.
The way to increase efficiency is to figure out what part of the whole process is causing waste and aim to minimize that, but that is HARD because it requires understanding your process, which is why they just do the lazy thing and fire a bunch of people to appease the almighty shareholders, so that they can say they did something.