Elastic lays off 7% of employees

Posted by dakrone 1 day ago

Elastic lays off 7% of employees(www.elastic.co)

224 points | 218 commentspage 3

alexk307 5 hours ago|

Sad but you unfortunately need to make a profit as a public company at some point. In 8 years since going public, they've had essentially one marginally profitable year surrounded by lots of losses while growing to 4000 employees. Easy to blame AI when the fault is really poor leadership.

moron4hire 1 day ago||

Looks like Elastic has a lazy CEO

https://www.entrepreneur.com/business-news/nvidias-jensen-hu...

ygouzerh 19 hours ago|

So true! It was the same for Gitlab, Cisco, Oracle... every-time they used the AI excuse to explain their laid-off, instead of explaining why they have bad financials. Actually, in all the cases above, the real reason when digging in the financials was the leadership and bad work culture...

Bombthecat 14 hours ago||

Seven percent sounds about right what AI can replace

tonyedgecombe 11 hours ago|

The business has been losing money for years. Perhaps 7% is better than 100%.

khurs 23 hours ago||

No mention of any details of the severance packages.

What's normal in USA for this size of company?

rootusrootus 23 hours ago|

2-3 weeks per year of tenure

nobleach 1 day ago||

I'm sure now that they've right-sized the org, the leftover engineers + AI are really gonna grind out the best features. We should be seeing 10x any day now.

enraged_camel 1 day ago||

So how many people? I can't find this info anywhere.

dakrone 1 day ago|

There were around 4000 employees before this announcement, so around 280 people affected.

tedggh 21 hours ago||

Why are these decisions never easy?

qwertyuiop_ 1 day ago||

We're in an outstanding position and well-equipped for the future. I'm excited about the opportunities ahead and focused on making sure Elastic is positioned to lead in this next phase of innovation. - Ash Kulkarni"

If they are in an outstanding position why did he make 7% of the employees lives miserable with a stroke of a pen.

bluecheese452 1 day ago|

[flagged]

daft_pink 21 hours ago||

I blame the hyperscalers not AI.

I think open source is important and fair use is important, but I’m skeptical of the business model of gutting open source by hosting it and reselling it wholesale with a few modifications.

Amazon, Google and Microsoft are getting rich just reselling hosted open source and actively competing with and gutting companies like Elastic.

aussieguy1234 20 hours ago|

> The industry is changing. Advances in AI, automation, and technology are reshaping how work gets done, and we're changing with them

It's never AI. In almost every case, companies that claim it's AI are doing so because reducing headcount due to "automating with AI" sounds better than the real reason, often over hiring, financial troubles and other reasons that might scare investors away.

The correct term is usually AI Washing.

More info: https://www.thehrdigest.com/what-is-ai-washing-and-why-has-i...

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