Read on Twitter
Someone pointed out to me that I hadn’t talked here about the layoffs we did in 2020.
I’ve talked about this in a number of podcasts and ad nauseum in personal and group conversations but going through my timeline I see I haven’t discussed it here.
So here is a thread.
I’ve talked about this in a number of podcasts and ad nauseum in personal and group conversations but going through my timeline I see I haven’t discussed it here.
So here is a thread.
First, a bit of backstory. I started Ueno almost 7 years ago. It was my first time running a business, but we found success pretty fast and grew rapidly.
At the beginning of 2020 we were 60 or so full time people and we were planning to grow by 30% in 12 months.
At the beginning of 2020 we were 60 or so full time people and we were planning to grow by 30% in 12 months.
The year started fairly well, things were moving as planned.
But then in February we started to be concerned about Covid as the news became more and more dire.
But then in February we started to be concerned about Covid as the news became more and more dire.
In early March we closed all our offices and sent our people home for what I foolishly expected would be a few weeks.
At that time we were booked for a few months and had a healthy bank account so I wasn’t too worried about a 1-2 month slump.
At that time we were booked for a few months and had a healthy bank account so I wasn’t too worried about a 1-2 month slump.
We cut all our costs but decided we would keep our teams safe and avoid any layoffs.
One of our values is We’re All In This Together and I talked internally and externally about our plans to keep all our people.
With the information I had I absolutely believed we would do that.
One of our values is We’re All In This Together and I talked internally and externally about our plans to keep all our people.
With the information I had I absolutely believed we would do that.
But then the effects of Covid started to build up rapidly.
At the time Ueno was very heavily project based, meaning most of our work was not tied to a few key accounts.
We needed a fair amount of new work to come in every month to break even.
At the time Ueno was very heavily project based, meaning most of our work was not tied to a few key accounts.
We needed a fair amount of new work to come in every month to break even.
And the inbox that previously had consistently been full dried up over night. Companies everywhere froze their spending.
Still, I wasn’t too worried. We were just a signature away from a number of projects, including one major long term account.
And we had our current projects.
Still, I wasn’t too worried. We were just a signature away from a number of projects, including one major long term account.
And we had our current projects.
But then, in fast order, our current projects were being put on hold.
And the signatures on the new work were being postponed one after another.
In a matter of a few weeks millions of dollars in projected revenue were gone.
And the signatures on the new work were being postponed one after another.
In a matter of a few weeks millions of dollars in projected revenue were gone.
At this time I was getting very worried. I worked mostly from my bed for 6 weeks, trying to live up to my responsibilites while my brain, body and spirit were trying to shut down.
I still held out hope, mainly based on two things. One, we were still looking at landing a major account and two, a number of advisors were still saying this was temporary.
At the end of April though the temporary thing was seeming more permanent.
And then the final nail came. The big account decided to put everything on hold
And that was it
I sent a note to my leadership team and told them there was no other way, we had to do a big layoff round.
And then the final nail came. The big account decided to put everything on hold
And that was it
I sent a note to my leadership team and told them there was no other way, we had to do a big layoff round.
The next few days are a blur. And to be honest those months are all blurry so although I’m trying to piece this together for you as accurately as I can I’m certain some of the things I’m saying are not true.
But those few days at the end of April are hazier than the rest.
But those few days at the end of April are hazier than the rest.
I do remember a fair amount of modeling, trying to predict how this could play out.
The scenarios ranged from very bad to terrible. Based on the information we had we saw a real chance that the company would go under in a few months.
The scenarios ranged from very bad to terrible. Based on the information we had we saw a real chance that the company would go under in a few months.
I decided we had to move fast to try and save what we could and avoid a second layoff round or even full shutdown. I decided we had to let the numbers guide us
The first decision was that we would let almost our entire ops team go. Anyone that wasn't bringing in revenue directly
The first decision was that we would let almost our entire ops team go. Anyone that wasn't bringing in revenue directly
Next we decided we would let a large part of our amazing dev team go.
For years I hadn't figured out how to keep their utilization high enough.
Lastly we went account to account and cut anyone that wasn't consistently being sold.
For years I hadn't figured out how to keep their utilization high enough.
Lastly we went account to account and cut anyone that wasn't consistently being sold.
If all of this sounds less than human it is because it was. It was aggressively pragmatic. All dollars and no emotions.
In the end we had a list of almost 20 people. Almost a third of our team. All of them amazing, none of them deserving of losing their job in a pandemic.
In the end we had a list of almost 20 people. Almost a third of our team. All of them amazing, none of them deserving of losing their job in a pandemic.
Since starting Ueno we had never gone through a mass layoff before.
I had hired all of these people and I didn't want to let other people handle letting them go.
So I personally broke the news to as many of them as I could in the timeframe we had.
I had hired all of these people and I didn't want to let other people handle letting them go.
So I personally broke the news to as many of them as I could in the timeframe we had.
This story is not meant to be about me or my pain in this. It's minimal compared to the pain I caused that day.
But I am the one writing this. It's my version of these events. So my emotions are bound to come through as well as a fair amount of self rationalization.
But I am the one writing this. It's my version of these events. So my emotions are bound to come through as well as a fair amount of self rationalization.
I don't know why I didn't write about this before here on Twitter.
I write a lot here.
I do know I never decided not to write about this. As I said before I have talked about this in multiple interviews and conversations.
I write a lot here.
I do know I never decided not to write about this. As I said before I have talked about this in multiple interviews and conversations.
But maybe my brain didn't allow me go there on here. Maybe my pride couldn't handle it. I honestly don't know.
And maybe my pride needs to add that we ended up turning things around and after a few very bleak months we were growing rapidly again.
And maybe my pride needs to add that we ended up turning things around and after a few very bleak months we were growing rapidly again.
I do know I think about that day in April constantly. I think about all the people I let down. All the mistakes I made that led up to that point.
Knowing that if I had been more courageous they could still be at Ueno.
Knowing that if I had been more courageous they could still be at Ueno.
I also know many of them resent me. And I don't blame them.
I told them we were in this together and then I let them go.
I thought I was doing the right thing but that doesn't really help them.
I told them we were in this together and then I let them go.
I thought I was doing the right thing but that doesn't really help them.
Anyway, that's the story. As mentioned above I'm sure it's not all accurate. The brain protects us from ourselves and alters our memories to make us feel better.
But whether it's true or not it is honest. And that's the best I've got.
But whether it's true or not it is honest. And that's the best I've got.
