[HN Gopher] CircleCI Layoffs
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       CircleCI Layoffs
        
       Author : fasgano
       Score  : 84 points
       Date   : 2022-12-07 21:23 UTC (1 hours ago)
        
 (HTM) web link (circleci.com)
 (TXT) w3m dump (circleci.com)
        
       | 015a wrote:
       | I don't want to turn a discussion surrounding layoffs into a lens
       | about the business itself; it sucks to be laid off, and I wish
       | everyone who was impacted great expediency in finding a new role.
       | 
       | But I'm going to anyway: I genuinely don't understand how
       | CircleCI is still a business. Every major code repository
       | provider has CI built in. All of the ones I've interacted with
       | (Github Actions & Gitlab) are just as good as CircleCI and in
       | some ways far better (e.g. there's a stellar community of Actions
       | builders on GHA, that can be included with one line; CCI Orbs
       | don't have nearly the same uptake). Pricing is all pretty
       | similar. Some companies want to self-host stuff: JetBrains &
       | Atlassian still own this.
       | 
       | Ultimately we left CCI because their stability was unacceptable.
       | While its been quite a few months, their status page history even
       | today showcases this well [1]; they legitimately have partial or
       | full outages once every two or so weeks (and those are just the
       | ones they tell people about; we _regularly_ , weekly, saw build
       | failures that could only be explained by "freakin circleci, just
       | re-run it").
       | 
       | [1] https://status.circleci.com/
        
         | zamalek wrote:
         | We also recently left them for self-hosted GHA runners. The
         | other problem is that their pricing is insane - we're building
         | exactly the same code for ~20% of the cost.
        
           | mousetree wrote:
           | I could never understand their bills. I seemed to get dozens
           | of small invoices throughout the month. Their whole concept
           | of credits was completely puzzling too. Left to GHA.
        
         | meta2023 wrote:
         | You're being downvoted for telling people exactly why they got
         | laid off. It's time to wake the fuck up engineers. When you
         | complacently don't pay attention to your business and core
         | offering, this is what happens.
        
           | Tao3300 wrote:
           | Engineers aren't generally setting the priorities on what
           | gets fixed when or what the business is actually offering.
           | The complacency problem is usually in management.
           | 
           | Can't speak for how CCI is run, but that's how it is at most
           | places with more than 10 people.
        
             | prepend wrote:
             | Engineers choose who to work for.
             | 
             | We go through these cycles where "I have no idea how they
             | make money but they keep paying me" stops working. There's
             | only so long you can work for a company that doesn't have a
             | viable business strategy.
             | 
             | I don't expect engineers to fix the business strategy, but
             | I expect them to consider it when choosing to join a
             | company or to stay.
        
             | icedchai wrote:
             | Exactly this. I've worked for founders at small companies
             | (<20 people) who just did _not_ want to listen to advice or
             | suggestions. It would be almost impossible to change
             | anything at a larger firm. Let 's just keep doing the same
             | old thing that isn't working.
        
               | pitched wrote:
               | I think the saying is "vote with your feet". There's
               | always at least one thing you can change. Your time is
               | worth more than your salary, otherwise they wouldn't pay
               | it. If you don't think a business will survive, stop
               | investing into them with your time.
        
       | spamizbad wrote:
       | Pretty good severance terms all things considered.
        
       | jrockway wrote:
       | What's the context behind this? I've used CircleCI at many jobs,
       | and I guess people must have moved on to some better tool? What's
       | the better tool?
        
         | the_mitsuhiko wrote:
         | I am not sure about "better" but a lot of people who previously
         | used Travis and Circle use GitHub Actions these days (and maybe
         | azure in the meantime).
        
           | edaemon wrote:
           | It does seem like CI/CD turned out to be less of a product
           | and more of a feature.
        
             | the_mitsuhiko wrote:
             | I think CI in particular turned out to be something that
             | people really, really don't like being unreliable and it's
             | incredibly challenging to operate reliably and cost
             | effective. For Microsoft providing that service is somewhat
             | possible because they have the warchest and operation
             | teams.
             | 
             | I think there is a different world where Travis (and
             | Circle) could have been built differently and maybe with a
             | slightly different operating model (eg: easier to operate
             | self hosted runners) where they could have made it harder
             | for GitHub to compete in the beginning. But not sure if
             | that would have delayed the inevitable.
        
         | acdha wrote:
         | I would assume some combination of "VC funding is no longer
         | raining from the sky" and "GitHub Actions are good enough for
         | enough teams not to want a second procurement".
        
         | simplotek wrote:
         | > What's the context behind this?
         | 
         | From the article:
         | 
         | > Right now, however, there is a ripple effect of uncertainty
         | in our sector. Since the start of Q4, we've seen a dramatic
         | shift in how every company's performance is evaluated.
         | Companies were once praised for growth at all costs. Very
         | rapidly, market expectations have shifted. The emphasis now is
         | on maximizing efficiency.
         | 
         | It sounds like they are cowardly using the
         | Google/Amazon/Twitter workforce decimation campaign as a
         | scapegoat to fire people.
        
           | wongarsu wrote:
           | I find their explanation pretty reasonable. In 2020 and 2021
           | money used to be close to free, with interest rates near zero
           | and VCs throwing money at anyone with a growth story. Now
           | both of these are no longer true, VCs are much more reserved
           | and bank loans much more expensive. And with money being more
           | expensive to acquire, everyone is more considerate about
           | spending money (and thus manpower).
        
           | vander_elst wrote:
           | I've heard about Twitter and Amazon campaigns, but not
           | Google's yet. Would it be possible to provide a link for
           | that?
        
         | urbandw311er wrote:
         | Just because this comment and/or like of discussion could be
         | perceived as insensitive on a day when people are getting tough
         | news, can I jump in to say that I think it's more likely to be
         | symptomatic of the general global downturn and current wave of
         | cost-cutting than it is any particular issue with product fit
         | or competitors.
        
           | acdha wrote:
           | I'd also add something along the line of SaaS fatigue. The
           | costs of managing vendors, securing & monitoring, etc. add up
           | and it's not uncommon for the overhead cost of another
           | service to be more than the benefits of using it. CI falls
           | into that category since there's an upper bound to how much a
           | dedicated service can give you, especially when the
           | competition like GitHub or GitLab gives you a bunch of other
           | features for the same price.
        
         | FlyingSnake wrote:
         | CircleCI has gone the same way as Docker. They pioneered a
         | paradigm but late entrants like GitHub/GitLab/Bitrise etc stole
         | the show with their offerings. Most teams I've seen use either
         | of these instead of CircleCI
        
       | idoh wrote:
       | I was one of the 17% laid off from CircleCI today. It's true, we
       | did get to keep our laptops :) As for reasons, it doesn't seem to
       | be from any current woes in the numbers (or at least from the
       | stats I saw).
       | 
       | So, um, anyone looking for a PM with experience in security or
       | data privacy? Hit me up!
       | 
       | I'm happy to answer any questions I can, and good luck to all
       | those who've been laid off recently (at Circle or otherwise).
        
       | ZeKK14 wrote:
       | The list is already updated here: https://layoffs.fyi/
        
         | echelon wrote:
         | It would be really great if this broke out engineering from
         | support and other roles.
        
       | siquick wrote:
       | Circle was the first CI/CD tool I used and opened my eyes up to a
       | whole new way of deploying. I haven't used it for a few years but
       | hope they can find a space.
        
       | aftbit wrote:
       | I feel for all the engineers impacted by this layoff, but I do
       | not agree that they are "the best CI/CD platform on the market".
       | 
       | Our small team has moved away from CircleCI for all new projects.
       | We are mostly using Github Actions these days. The major driver
       | was not cost, which was minimal for our team, but the fact that
       | CircleCI keeps breaking our build. In the ~5 years that we have
       | used them, we have experienced at least 3 major breakages,
       | including the migration from v1 to v2 yaml configs and the new
       | docker architecture.
       | 
       | They have strayed far from their early value prop and cause us
       | more headaches than delight. CircleCI, if you are listening, all
       | I want with CI/CD is to forget about it, not have to revisit a
       | working project every year to rearchitect it onto a new builder.
        
         | hoherd wrote:
         | I guess this is a good place to remind folks that scheduled
         | workflows will probably stop working soon
         | 
         | > The scheduled workflows feature is set to be deprecated.
         | Using scheduled pipelines rather than scheduled workflows
         | offers several benefits. Visit the scheduled pipelines
         | migration guide to find out how to migrate existing scheduled
         | workflows to scheduled pipelines.
         | 
         | https://circleci.com/docs/configuration-reference/#schedule
         | 
         | One more thing to migrate out of the config file in the repo
         | and off behind some API call or pointy-clicky UX.
         | 
         | Edit: it looks like they've postponed the deprecation, which
         | was originally planned for 2022-06-03
         | https://discuss.circleci.com/t/scheduled-pipelines-are-here/...
        
       | fasgano wrote:
       | CircleCI lets go of 17% of their workforce today.
        
         | nocobot wrote:
         | but hey, they get to keep their laptops
        
           | raymondh wrote:
           | For those of you unfamiliar with layoff practices in most
           | other industries, this is as good as it gets. The terms
           | enumerated in the note are generous. Also, the value of the
           | job placement support should not be underestimated.
        
           | indigodaddy wrote:
           | They don't want to pony up $ for the prepaid labels I'm
           | guessing? The laptops are sunk cost anyway and then there's
           | also the additional overhead of processing the returned
           | laptops with their IT? Man things must be really bad if
           | that's the case..
        
             | trynewideas wrote:
             | Are there tax implications? Do the laptops count as losses
             | CircleCI can write off, and compensation the ex-employee
             | has to report?
        
           | johnrob wrote:
           | Surprised that is possible in the age of compliance for
           | certifications (PCI, HIPPA, SOC2, etc).
        
             | indigodaddy wrote:
             | Was also wondering about this. Perhaps they will push a
             | wipe or a clean reinstall..
        
             | hobr wrote:
             | If they are using Mobile Device Management (MDM), they can
             | remotely wipe all the laptops before allowing departing
             | staff to keep them.
        
       | calrueb wrote:
       | With these non-IPO companies doing layoffs is the correct way to
       | read these announcements "we are letting people go to lower
       | expenses because we are not profitable and are actually at risk
       | of running out of money" or is it more "we are letting people go
       | to lower expenses because our investors are asking that we look
       | better on paper because they would like us to have a liquidity
       | exit event (acquisition, private equity, IPO)"?
       | 
       | I suppose my larger question is if a private company is break-
       | even/profitable would the investors/board ever ask management to
       | make these cuts? If so, why?
        
         | datalopers wrote:
         | For all companies, public or private, they need to grow their
         | gross margins if they want to survive. The last 5-10 years was
         | inappropriately focused on revenue and headcount growth and the
         | tide has very abruptly shifted.
        
         | xedrac wrote:
         | I suspect it has a lot to do with the rate at which companies
         | can borrow money.
        
         | wongarsu wrote:
         | All of the above.
         | 
         | Suppose you have a company with no money, but with a bank
         | willing to loan you money at market rate. You can do three
         | projects, one costs $1 mil, and after a year brings you $1.5
         | mil in profit, the second costs $1 mil and brings $1.05 mil
         | after a year, and the third costs $1 mil and brings $1.01 mil.
         | 
         | In 2021 interest rates were near zero, so all three projects
         | would have given you a profit. The worst of the bunch only
         | $10,000, but that's still nice. So you hire people to do all of
         | them. But now at the end of 2022 interest rates are about 4%
         | and climbing. The loan for each project now costs $40,000,
         | making the last project unprofitable, and the second project
         | will only be profitable for a couple more months at best. So
         | you cut projects 2 and 3, laying off everyone working on them.
         | 
         | That's how a healthy company would end up with layoffs. A less
         | healthy company might only have projects like the second and
         | third one, and is now running around trying to improve
         | efficiency. And some companies don't make profit at all, being
         | afloat on the hope of eventually making some, and slowly
         | sinking as that money becomes more and more expensive.
        
           | notyourwork wrote:
           | Really good summary of how different economic times are
           | handled differently at a business strategy level. It's worth
           | noting as an engineer because risky startups 2 years ago are
           | not carrying the same level of risk for you as an IC to
           | contribute to today. It could be case that a startup closes
           | doors way faster/quicker today whereas a few years back
           | they'd continue burning cash.
           | 
           | This is why jobs are not just a job but you are investing in
           | a company so to speak because if the company is not
           | successful your job may also not be needed any longer.
        
         | thebitguru wrote:
         | I don't know about CircleCI specifically, but generally, pre-
         | IPO companies are pushed to reinvest profits in favor of
         | aggressive/continued growth, instead of profit. Most companies
         | intentionally overspend, but now that the investments are
         | drying out, they are changing their posture. So, I would guess
         | it's the former, i.e., letting people go to reduce the risk of
         | running out of money.
         | 
         | At the same time, depending on how the business is doing, some
         | investors might look for exits too instead of plateau or later
         | raising another round. So, it could be both.
        
       | candiddevmike wrote:
       | > Despite today's news, we're confident in our business. I
       | believe we have the right strategy to succeed in the long term.
       | We have the best CI/CD platform on the market by leaps and
       | bounds. We see that success reflected in the continued growth of
       | our business, adding thousands of high-performing engineering
       | teams to our platform over the past 12 months.
       | 
       | Clearly that's not the case if you're doing layoffs, no? Wouldn't
       | you want to keep those folks around so you can do that bit at the
       | bottom: "Our customers are some of the most innovative,
       | engineering-centric businesses on the planet, and helping them do
       | great work will continue to be our focus."
        
         | CharlesW wrote:
         | > _Wouldn 't you want to keep those folks around..._
         | 
         | I'm sure they would if they felt they could, however...
         | 
         |  _" ...there is a ripple effect of uncertainty in our sector.
         | Since the start of Q4, we've seen a dramatic shift in how every
         | company's performance is evaluated. Companies were once praised
         | for growth at all costs. Very rapidly, market expectations have
         | shifted. The emphasis now is on maximizing efficiency."_
         | 
         | Meaning, this is (as I read it) largely a response to investor
         | pressure to right-size.
        
         | jfengel wrote:
         | This is how the business cycle works. Companies expand during
         | the booms, so that they can prepare to take on more business
         | than they are currently doing. Eventually somebody realizes
         | that it has all been irrationally exuberant, and a bunch of
         | them get laid off.
         | 
         | This is why the standard economics policy is to try to grow
         | slowly and smoothly rather than have big boom and bust cycles.
         | As the saying goes, the Fed's job is to take the punch bowl
         | away just as the party gets started.
         | 
         | But unfortunately, everybody loves punch, and boos when the Fed
         | takes measures to rein in the economy. The last recession in
         | the US ended in 2009, but the central bankers treated it as a
         | crisis until... until it became a different crisis.
        
       | nerdjon wrote:
       | I feel bad for the employees.
       | 
       | Does anyone... actually like CircleCI?
       | 
       | Last time I used it, it just felt way too opinionated. Then they
       | introduced their way of standardizing jobs with templates or
       | something (it has been a while) and for some reason made the
       | decision that any templates had to be public instead of private
       | for the first version (which was completely backwards).
       | 
       | Personally for me I always lean towards Jenkins just because I
       | can do whatever I want with it. But baring that I feel like I
       | would end up either going with something my git hosted provides
       | (like GitHub actions) or something my cloud provider has (like
       | AWS CodeBuild).
       | 
       | Is there something I am missing? Looking at the pricing it isn't
       | exactly cheap either.
        
         | [deleted]
        
         | timtom39 wrote:
         | I used to love CircleCI then they broke all my CI jobs when
         | they deprecated their "Convenience image". Rather than continue
         | to maintain CircleCI jobs and pay them for the pleasure I am
         | just migrating to GH actions. It is painful. They have good
         | lock in.
        
         | brianwawok wrote:
         | No not really.
         | 
         | I think it is one of the few providers that offers Apple
         | runners. Not much else besides that. We switched to self hosted
         | teamcity and 1/3 our build time with a 6 month payback.
        
         | ch4s3 wrote:
         | > Last time I used it, it just felt way too opinionated.
         | 
         | That's exactly what I like about it.
        
         | ftlio wrote:
         | > Does anyone... actually like CircleCI?
         | 
         | It's a weird feeling where they once felt like a reprieve from
         | all the PITA "enterprise" stuff, but now they're that PITA
         | kinda-poorly-minded "SaaS" stuff, which sucks compared to... a
         | Microsoft product?
         | 
         | It's kinda obvious in retrospect. Enterprise became SaaS faster
         | than SaaS could become enterprise.
        
         | icedchai wrote:
         | I set up CircleCI at a previous company because it was "easy"
         | and neither GitHub Actions nor AWS CodeBuild existed yet.
         | Eventually, we outgrew it (memory issues, I think?) and set up
         | our own Jenkins instance. This would've been back in 2016, so
         | I'm sure it's better now.
        
       | vander_elst wrote:
       | Best of luck to all impacted employees!
       | 
       | The terms seem above average, I hope something like this will
       | become the standard.
        
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