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Wayfair CEO tells employees to 'work longer hours' in year-end email (usatoday.com)
82 points by embit on Jan 19, 2024 | hide | past | favorite | 35 comments



> "As a result, we're reducing team sizes across the organization, as well as reducing seniority in certain roles that we plan to rebuild with modified leveling over the course of this year,"

> "There is not a lot of history of laziness being rewarded with success. Hard work is an essential ingredient in any recipe for success. I embrace this, and the most successful people I know do as well."

I can't imagine a single worse strategy as a leader than to choose 'reduce pay' and 'imply laziness'. Did this guy get his management degree from the Roman empire? Just fire people and say you over-hired, holy cow.

I'm not part of the "talented executives shouldn't get paid a lot" crowd, but the important part is the talented bit.


> There is not a lot of history of laziness being rewarded with success.

A lot of inventions come about because of laziness. Some guy somewhere got tired of carrying his things around, so he invented the wheel. Of course, I don't know whether the inventor of the wheel was properly rewarded.


I had this argument with a PhD. I debated it in my head for awhile and just came to the conclusion that it's mostly that people who think hardwork is the best trait is most a self fulfilling prophecy. Accepting that to get to C You have to do AB is absolutely going to make you believe that the work is necessary. Then along comes someone who just hates doing B. definitely they're going to be viewed as lazy, but to want to optimize B, you have to be lazy.

So, what you ultimately have to accept is some hybrid thought process and red/blue roleplay to find optimized workflow, process and the rest.

it's just not a useful dichotomy.


"Necessity is the mother of invention!"


> I'm not part of the "talented executives shouldn't get paid a lot" crowd, but the important part is the talented bit.

On the face of it the CEO and other executives are talented. The founders occupy the most senior positions. They have built a substantial business.

Maybe they were lucky or influential instead of talented. Perhaps things have just gone wrong and they are desperate and this is the best available option. Maybe success have made them lose touch with reality.

However it happened, we have gone from apparent talent to apparent stupidity.


Most importantly, they're choosing a path where they acknowledge that employees will receive less compensation for more work, while the management reaps massive benefits of improved stock prices.


Hey, that's unfair. There were some competent Roman emperors.


It’s not unfair, it’s wayfair


LOLOLOL


> I can't imagine a single worse strategy as a leader than to choose 'reduce pay' and 'imply laziness'

Don't forget he also employed the 'fire senior team members, hollow out teams' strategy


Seriously, could have been way more clear and concise: "we over hired". But that would indicate that he dropped the ball. He's certainly not the type of CEO that would take personal responsibility. #loser


> Just fire people and say you over-hired, holy cow.

That would be the "lazy" way out. It would also be simple, fast, honest, straightforward and show respect to everyone involved.


Back when I worked in manufacturing, this kind of tone was pretty common. We even called the quarterly speeches from the CEO to employees "you suck meetings" (out of earshot of the CEO, of course). As software engineering becomes less about innovation and more about a relentless slog to reach milestones, I'm not surprised that it's taking on aspects of the manufacturing world.


The difference is that most manufacturing jobs pay overtime at least.


Not if you're an engineer


The beatings will continue until morale improves.


'...blending work and life, is not anything to shy away from'

Maybe not if you're at the executive level, where what counts as work is much different than the rest of a company. But it's generally hard to fuse say, time spent fixing bugs at a desk alone, with the rest of life.


HAHAHA

If there was ever a red flag...

I'd be running from that company like in a Hana Barbera cartoon.


That just makes people perform worse, too.

Because then your vacation and fun time sucks.

So then you don't get a proper break and suck at work.


> In the memo, Shah said employees should be prepared to work longer hours and not be afraid to let work impinge on their personal lives.

I wonder what executives should prepare for. Presumably continuing to contribute nothing of discernible value. Probably what comes when you treat humans like fungible work units to their face without even the pretense of viewing them as human.


I was head-hunted a while back from Wayfair, and I felt that it was too good to be true: 1. high pay for remote work, 2. small teams, and 3. working on interesting tech (I think it was an AI furniture preview, like Amazon has). I ultimately decided against Wayfair because I had the feeling that helping a company sell predominately low-quality Chinese furniture to unassuming Americans would further enlarge the void in my soul, and I would be working far too much. Perhaps for a year or two, it would have been a dream come true, if I didn't want to have a life outside of work...


I went to look up the CEO's compensation package in order to post a low-effort snarky HN comment but instead found[1][2] very weird compensation data for Wayfair execs. The co-founders (including the CEO) make comparatively modest money, while the generic CxO suits make huge gobs of it (mostly equity). Is this usual?

I'd still trade places with the CEO any day, though, of course.

1: https://www1.salary.com/WAYFAIR-INC-Executive-Salaries.html

2: https://www.sec.gov/Archives/edgar/data/1616707/000104746915...


After the IPO, the founders owned ~30% of the company. If you own that much equity:

- you don't need a salary, and

- it's already in your best interest to make the company more valuable

People who are hired from outside need to be paid a base salary, but should expect to make most of their money from increasing the value of the company, hence the need for equity grants or equity option grants.


Looks like most of it comes from being awarded stock. Founders don’t get more stock generally.


Correct. In the past, they've pulled the "but I only take $75k out of the company" and "I pay for when I use the company jet for personal business" when discussing compensation in the past. While true, it ignores the >$1B in stock.

If I had more courage, I would have asked if the jet was available to anyone willing to pay for it.


Huge piles of equity and relatively low salary is pretty common for c-suites. Something something rewarding them for their leadership


Was recently furniture shopping, and of course browsed multiple places including Wayfair.

Wasn't long before I saw an identical sofa to one I just saw elsewhere. Hey wait a minute! A reverse Google image search on most sofas showed up in multiple places with multiple brand names. And Wayfair was rarely the cheapest.

I have no idea if they offer anything useful, but in my short stint it seemed to be a marketplace for marked up white labeled...junk.


This type of remark is embarrassing. If it’s meant to inspire employees it’s tone deaf, and if it’s meant to soothe shareholders it’s too little too late.

Wayfair was only profitable during the pandemic. Rank-and-file employees working more hours won’t fix the business model.


I dunno man. Pay them millions in options per quarter like you.


That’s a really high net loss. He’s going to need to do more than ask people to work more.


Anyone still working there needs to start looking for new jobs ASAP. Once you start hearing talk of "free cash flow" find the exits, trust me.


The beatings will continue until shareholder value improves


"sure, pay us more"


so he's asking for people to do more hours, for the same money. this is a wage reduction.

how dare those slaves ask for money for work. they should just be thrown enough food to reproduce and their offsprint to survive, so as soon they die, their kids can start working in their place.

the 19th. things have never been better for rat race slaves heh.


I’m not sure if it’s a lack of shame from the CEO, or a lack of healthy fear.

I can tell you that if I ran my mouth the same way he did, I would be worried about someone throwing a fist.




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