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58% Positive

Analyzed from 4174 words in the discussion.

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#companies#employees#company#elastic#why#more#market#business#sure#still

Discussion (194 Comments)Read Original on HackerNews

puszczyk•about 15 hours ago
Makes me sad to read it as an ex-Elastic employee.

AI is used to justify the redundancies, and the company still expects to grow in this fiscal year. In the SEC filling the specifically mention more “head count” in “go-to-market” roles [1].

> a reduction of approximately 7% of our workforce

> Advances in AI, automation, and technology are reshaping how work gets done, and we're changing with them. (…) That's what this reorganization is for: a simpler structure, with fewer layers, less complexity, and less friction.

> The changes we announced today are a sign of confidence in the business, not a retreat from it. We continue to invest in key growth areas and expect total headcount to grow year-over-year this fiscal year [the SEC filling says “ The Company plans to continue hiring in key strategic areas and locations, including continuing to grow headcount in customer-facing go-to-market functions, and expects total headcount to grow this fiscal year compared to last fiscal year, as it continues to invest in future growth opportunities”]

[1]: https://ir.elastic.co/financials/sec-filings/sec-filings-det...

dzonga•30 minutes ago
>more “head count” in “go-to-market” roles

Software engineers tend to put their heads in the sand, once a company/product reaches a certain maturity - it's the time for it to be milked. You need less product people - hence why most companies end up outsourcing to India etc, "A.I" is just outsourcing to "agents".

Now Salespeople - they can keep selling - and as long as they're willing buyers.

this is all part of the Product Maturity lifecycle.

One day the product stops being an attractive cash cow - then it gets sold to PE & finally dies or remains a zombie.

as an engineer - your job is to know where in the product lifecycle the company|product you're currently working on is.

grey-area•about 8 hours ago
What’s also sad is looking at the quotes you posted GAI was obviously used to churn it out - it’s a simulacrum of thought, signifying nothing. This is what the CEO is trying to claim will save the company, and unfortunately this is the sort of mediocrity relying on LLMs gives you.
christophilus•about 14 hours ago
ex-Elastic here, too. It was a great place to work pre-IPO. It seems the culture has shifted a lot since the IPO, though.
echelon•about 13 hours ago
Might've been better if AWS and GCP didn't steal your goodies and take so much meat off the bones.

Fair source > Open source.

Trillion dollar companies need to pay to play.

Open source removes your jobs, your exit equity, and transfers it to the hyperscalers. Sucks that it happened to you guys.

limagnolia•about 12 hours ago
Elastic isn't Open Source though, they abandoned Open Source. It seems to me like this is an example of non-Open Source whatever licensing causing job loss. Or just plain bad leadership.
democracy•about 12 hours ago
It does actually. I am pro-OSS as sharing knowledge and innovation, I am not sure at this stage I am happy sharing my work with people using LLMs for anything... OSS gonna change for sure.
ai_slop_hater•about 15 hours ago
I've grown to hate executives. This is obviously an AI-generated nothing burger. They never mean what they say publicly.
sandeepkd•about 15 hours ago
Do not want to sound like as if I am taking their side but the reality is that all these decisions are mandated by some subset of investors in one way or another.

These executives are replaceable, and they would be replaced if they do not toe the line. In other words these executives happen to choose a easy and beneficial path rather than standing up for the long term right thing for the company.

Grombobulous•about 14 hours ago
The thing is, a profitable company that sees an obvious efficiency staring it in the face is still going to take that efficiency.

I don’t think a lot of us employees will be happy to admit that AI is turning out to be a legitimate productivity aid that is allowing individuals to accomplish more work per person.

We’d rather sit here and stew about companies “blaming AI for layoffs” but I imagine that is only sometimes the case.

A somewhat related tangent: I have had the thought that many parts of the Japanese system of hiring for life might actually be really appropriate for the AI age. That system seems to result in a lot of companies finding ways to reshuffle employees into making some kind of product that has market value rather than the Western reaction that that seems to favor downsizing and focusing the company on a smaller set of markets in the name of ruthless efficiency. This seems to result in many Japanese firms making a wide breadth of interesting products at very high quality levels.

If your company is profitable because AI is increasing efficiency (allegedly, of course), why layoff 7% of your employees when you could instead assign them to make something new or complementary to your current product line? Western companies seem to refuse to do that out of a sense of focus and efficiency, but maybe giving that strategy a go more frequently would result in unrealized opportunities.

eli_gottlieb•about 14 hours ago
Ok so get rid of the investors then.
mrcwinn•about 14 hours ago
That’s not how it works. Investors don’t mandate operational decisions. That’s for… operators. What they do ask for, in exchange for their investment, are things like revenue growth or certain margins.

You can crap on those investors. The answer then is to never take their money. But without money, the job probably wasn’t created in the first place. So the result is the same.

By the way, ever work alongside a really crappy non-executive and wonder how on earth they’re keeping their job? I sure have.

twelve40•about 2 hours ago
this is a bit... general? there are companies with bullshit executives for sure, then there are companies who slay it.

i hate to list the details because people start picking on details, but in my mind MS under Satya made a 180 from crap to relevant. All the while i realize what kind of shit goes on inside and if you read Blind your eyes will bleed. Yet Satya took it from a pure 100% bullshit executive and made it relevant. So not all executives are equal.

BobbyTables2•about 14 hours ago
An AI can also regurgitate others decisions, based on a much wider knowledge base than these executives.

AI hardware costs are nothing compared to executives’ stock options too…

nozzlegear•about 15 hours ago
This announcement spends remarkably few words talking about the what (7% of the company's workforce was laid off), and a great deal of words talking about how bright the future of the company is and how they're going to hire more people.
skeeter2020•about 15 hours ago
If you were realigning your SaaS company to ignore your technology short-comings and technical debt, and isntead focus on selling as much "AI-enabled <whatever>" while the rush still looks like gold, this would be a great strategy & announcement.
brianwawok•about 13 hours ago
Tech debt is much less important than many developers think it is. More sales over chasing tech debt almost every time.
bunderbunder•about 1 hour ago
I’ve seen many products die sudden, violent deaths due to unmanaged technical debt. If you have customers who care about quality and reliability, you simply cannot set up a false dichotomy between selling product and managing technical debt.

That said, I would also concede that over the past decade or two the clean code movement has made a damn strong effort of poisoning the term by trying to characterize technically inconsequential aesthetic concerns as technical debt.

datsci_est_2015•about 2 hours ago
“Chasing tech debt” vs “more sales” is a false dichotomy. A dangerous one, too, if you simply expand “chasing tech debt” to “listening to engineering concerns”. That’s how you end up with a Boeing.
dboreham•about 10 hours ago
Of course. But as an old sales guy used to tell me: "In the story, at the end the wolf shows up".
mik3y•about 15 hours ago
Layoff announcements are this kinda tricky class of corporate comms where you need to speak to at least 3 different constituents, with 3 different messages, which are often in conflict.

It's something like:

(A) To the public (e.g. prospects, customers, investors): "This is a good thing and we're going to be an even better bet!"

(B) To the remaining team: "This is tough and I feel your pain and will do better."

(C) To the laid off: "It's not you, it's me, thank you and good luck."

It's hard if not impossible to handle all three of these authentically, concisely, and in the same message. Which is why you can almost immediately find something not to like..

jorams•about 8 hours ago
There's really only a conflict between A and the rest, and that's because A is a lie. It's not a good thing, if it were they wouldn't have to say B and C.

They can try to do better and be hopeful, but they also fucked up big time. It's not like the public actually believes the lie, so stop telling it.

jimt1234•about 14 hours ago
And all 3 messages have to be delivered within very strict legal guidelines, because someone's always gonna sue.
cyanydeez•about 15 hours ago
which is why most corporations should be classified as sociopaths, at a minimum.
yamillove•about 14 hours ago
The corporation actually gave them a job.
blitzar•about 3 hours ago
Look at what they make you give
lcnPylGDnU4H9OF•about 15 hours ago
Well, sort of. That anthropomorphizes them and allows the sociopaths running the corporations to pawn the responsibility of their decisions to the corporation, which is actually a legal fiction that is incapable of independent thought or expression.
AngryData•about 11 hours ago
I c-suites were actually held responsible for the actions of the corporation I would agree, but I don't see that actually happening very wrong. It is so rare that when it does happen it will be in the news for months.
calgoo•about 14 hours ago
They have already done that when giving companies right as people which then takes responsibility off the CEO.
SaucyWrong•about 15 hours ago
Funny, so many words used but my brain only hears, “I am currently mismanaging this company,” every time one of these layoffs occurs.
tylerjl•about 14 hours ago
It's interesting to contrast this announcement with a similar post from the CEO in 2022 [1]: those past layoffs had much more of a victim-of-circumstances tone as ZIRP was beginning to dry up, but apparently those "bad times" versus "good times" during AI mania just accounts for a delta of +6% additional layoffs.

Another commenter questioned what size bucket Elastic falls into these days; in April 2025 their SEC filing [2] cited about 3,500 employees. So not a startup any more but definitely not fully-fledged FAANG-sized.

(not sure whether it even applies here; but full disclosure, I left Elastic in 2022.)

[1]: https://www.elastic.co/blog/ceo-ash-kulkarni-email-to-elasti... [2]: https://www.sec.gov/Archives/edgar/data/1707753/000170775325...

tracerbulletx•about 15 hours ago
Before the 1980s layoffs were seen as a massive failure of the company and almost never happened to tenured employees unless the company was collapsing. Before we are all made to think this is normal and unavoidable behavior.
zamadatix•about 15 hours ago
I wouldn't have nearly as many complaints about this mindset change if ones life (e.g. insurance) weren't still so deeply tied to who your current employer is.
jimt1234•about 14 hours ago
I'm aware that HN frowns on "THIS", but...THIS!!!

I don't know what the best solution for the current healthcare clusterfuck in the US is, but I think disassociating health insurance from employer/employment is a great first step.

brianwawok•about 14 hours ago
As a business owner yes please! Charge me a flat insurance tax. And then give everyone insurance. It’s such a cluster.
kelvinjps10•about 13 hours ago
Improving coverage and acceptance by plans in the marketplace would be a good start. Multiple healthcare providers only accept plans from an employer or the state, not individual plans bought in the marketplace. Crazy that in a pro-business country, if you have your own business or you're self-employed, you can't have access to healthcare
tonyedgecombe•about 4 hours ago
I’m always amazed that the US is as entrepreneurial as it is given the healthcare situation.
torben-friis•about 15 hours ago
I know HN is mostly against regulation, but I'm very glad my country restricts mass firings, and particular stricter rules apply for companies that turn a profit.

If you're generating benefits, there should be very few reasons you need to let go people massively.

vanrysss•about 14 hours ago
I have a cousin in Belgium who was laid off following some restructuring and her severance was 52 weeks. Not out of the goodness of the company's hearts, but mandated by law since they gave no notice and she had accrued seniority. US labor laws are a joke in comparison.
Matticus_Rex•about 14 hours ago
I'm sure that level of overhead has nothing to do with the reason Belgian incomes, standards of living, and business outcomes are worse.
yamillove•about 14 hours ago
Now compare your cousin’s yearly salary in Belgium with the average salary of a US employee doing the same job.
para_parolu•about 14 hours ago
This also a reason why starting a business in USA is usually better.
infecto•about 12 hours ago
This is a tough problem because it’s not always great. There is a reason companies largely (not all!) think twice about innovation, hiring and building out new facilities in European countries and part of that are those labor laws. So you miss out on upside but maybe it evens out on average.

This is not me advocating for either side but it’s one of the reasons most startups exist in a country like the US.

PowerElectronix•about 14 hours ago
And people wonder why there are zero companies in europe competing with american ones in the tech sector...
joe_mamba•about 6 hours ago
>since they gave no notice

WHy wouldn't they do that? What type of notice ado you mean in this case?

wbl•about 14 hours ago
The Nordic countries provide income replacement and retraining instead. Labor market inflexibility locks out younger unproven workers.
ReptileMan•about 7 hours ago
Limit mass firings and you are also limiting mass hirings.
ronnier•about 14 hours ago
HN is very much pro regulations of all types.
cramer4next•about 14 hours ago
In the 80s you didn't have the majority of your employees being white collar and making six figures.

The U.S. is suffering from office worker bloat. They have an increasing growing population of people who know very little about physical labor and most likely won't be able to adapt to upcoming AI induced mass unemployment. I only see the pain getting worse for them.

Not sure what the solution is for them here.

33MHz-i486•about 14 hours ago
the business people took over tech and somehow convinced us Jack Welch’s management philosophy (targeted attrition, layoffs for financial engineering) was a best practice even though he and his proteges drove numerous old guard tech companies into the ground
Avicebron•about 15 hours ago
I don't know how the social contract between employees/employers gets rebuilt..feels like it needs to though
danans•about 14 hours ago
> I don't know how the social contract between employees/employers gets rebuilt.

The only social contract that is guaranteed is the one written into law. That's why we have government, but the problem is that the government is (for a while now) captive to / bought by large corporations, not responsive to employees/workers/voters.

Whatever principled social contract you may have thought large corporations upheld was smoke and mirrors. It just worked for enough of the right kind of person for a while.

b3kart•about 14 hours ago
What’s written into law is just “contract”, not “social contract”. Your argument is basically “if it’s not illegal it’s not wrong”.
jknoepfler•about 14 hours ago
Yeah. There is no such thing, especially and in particular with publicly traded companies. The only meaningful way to change behavior is regulation.

Beyond that, "social contracts" benefit the powerful and have a tendency to turn a blind eye to the worst off. Does the "social contract" require me to be a white, college educated male to secure worker protections? If you need a clear example of this, consider the relationship between citizens and police in the United States, and how blind the majority has been to how fundamentally broken the "social contract" around policing has been for minorities. That's what a handshake-society looks like.

Granted having both might be nice, but relying on a social contract is like relying on a benevolent dictator. It's great until it's not.

yamillove•about 14 hours ago
When you are making $250k or above you should not think the job someone gave you is some kind of God-given right.
nosioptar•about 14 hours ago
Employers will only do the right thing in two cases: they're afraid of stiff government penalties or they're afraid their workers are going to cut their heads off.

Personally, I'm in favor of regulations and stiff penalties for employers who break them.

jknoepfler•about 14 hours ago
I don't think it's rational to rely on relationship with a business, especially and in particular a publicly traded business.

Change starts with regulation. That's how every other advanced economy handles it.

It's really not that complicated. It's the same situation as healthcare. You shouldn't rely on the free market to do anything other than maximize short term profits.

heylook•about 12 hours ago
You tax the everloving hell out of the rich, so they can't just buy whatever policy or judiciary outcome they want or build mega "just in case, i promise uwu" bunkers.
darth_avocado•about 14 hours ago
When Elon fired 80% of the company, I remember a lot of celebration on HN. Some of it was the perceived political bias within the employees and some of it was “The app works fine what were all those employees doing? They probably deserved it.”

At the time I remember talking about this becoming a norm as CEOs follow the lead and getting downvoted heavily. Its unfortunate that we are here, but also not surprising, given how limited empathy people have for each other at times here on HN. Unless we stand for each other, this won’t change.

meerita•about 4 hours ago
When that happened, AI wasn’t even at today’s level. Elon clearly didn’t fire those people because AI would replace them. They were laid off because the company could run pretty well without them. And that’s exactly what happened.
monksy•about 14 hours ago
That's not from what I remember. I'm sure there was some skepticism about some of the roles that were there. But I do remember Ian Brown just completely dunking on that triobyte on Twitter Spaces. (Ian Brown is an ex-Twitter performance engineer, he pushed Musk on "what is non-performant, and you explicitly define it".. suffice to say gehot and Musk got a little embarassed and kicked him off the stream).
pram•about 13 hours ago
George Hotz’s entire tenure as a Twitter “intern” was so hilariously embarrassing. And the entire preamble at the time about basically “purging the parasites” and Heroic 100x Coders (the search still sucks)
tonyedgecombe•about 1 hour ago
It’s not that surprising there wasn’t much empathy when there was so much bragging about how much people were earning and that it would go on forever.

For what it’s worth I was one of the people questioning why they needed so many people although I never said those let go deserved it.

phendrenad2•about 13 hours ago
The tech industry spawned a new type of Wall Street investor who thinks a stock is a high-interest savings account. There's no room for risk, you need to grow at exactly 3.141593% per quarter or you face the pitchforks-and-patagonia-vests threatening to take their money down the street to the next bank.
outside1234•about 14 hours ago
The worst part about the current situation is that the company is then just turning around and hiring people.

It is almost like the company really is just doing it to arbitrage or get rid of expensive (aka old) employees.

Rekindle8090•about 14 hours ago
"Before the 1980s layoffs were seen as a massive failure of the company and almost never happened to tenured employees unless the company was collapsing. Before we are all made to think this is normal and unavoidable behavior."

Yeah and psychology was considered unserious, computers were still new, civil rights was barely ten years old and most work was unskilled labor.

What is your point? Stop using "not how it was 50 years ago" as an argument because it isn't one.

keithnz•about 15 hours ago
This just reaffirms my view is that big companies will lose headcount because of AI, but small and medium companies will (or at least have the potential to) leverage AI to do bigger and better things. This is because big companies could always spend big money on getting what they want made while small companies always have to tradeoff what they can realistically do with the resources they have.
wolvoleo•about 15 hours ago
Also big companies spend tons and tons of time and money on useless busy work.

I work in IT and when we needed something new we'd just implement or build it.

Now we have long certification processes for anything new, checking if it complies with hundreds of pages of policies. A lifecycle management program which we constantly have to keep updated. Governance teams that are constantly looking over our shoulders. All shit that has nothing to do with IT whatsoever.

As a result we spend 90% of time doing busywork jumping through hoops these guys set up for us. Only 5% is real technical work and a lot is outsourced or consulted out to a friend of the vice president who spends all day chatting in his office for 1000 bucks a day. Or a Deloitte guy who looks great in a suit and has no idea what he's talking about. Because companies hate employing people who have actual knowledge.

I really hate IT work now. Not sure about the rest of the industry but this change happened about 10 years ago. Until then we still were able to do actual useful work.

I can only imagine how awful a place to work it will become when they will use AI to dream up even more inhibiting policies to keep us down with.

Oh and meanwhile the CEO still goes around how innovative we are even though any innovation is absolutely killed by all this bureaucracy. Most of the time we come up with a great idea it doesn't move ahead because nobody wants to deal with years of pencil pushing to get it approved.

I can totally see how startups can do actual work with little money and we can't do anything.

georgel•about 15 hours ago
This has been the case forever in corporate environments, even before AI. I worked for 3 years on an app that in startup land should have taken a couple months at best.
robwwilliams•about 14 hours ago
In academic research I have seen this same trend, particularly intensely in IT and security. Lock it down, lock it up, and slow down research. A hierarchy of admins and techs taught to cover their asses.
Macha•about 14 hours ago
Is elastic a big company? I’d put them somewhere between small and medium…
dredmorbius•about 8 hours ago
Standards vary, but very roughly:

- Small: < 100 employees

- Mid-sized: 100 - 1,500/2,000 employees.

- Large: > 1,500/2,000 employees.

See: <https://www.indeed.com/career-advice/career-development/busi...> <https://learn.g2.com/business-size>.

The US Bureau of Labour Statistics identifies nine classes of businesses for employment dynamics, the largest being 1,000 employees: <https://www.bls.gov/bdm/bdmfirmsize.htm>.

I'm surprised by the latter as there are many companies with > 10k employees.

The list of 100 largest US companies by headcount ends with Meta at 78,865 employees. The top ten have 309,000 or more employees, two (Walmart and Amazon) over 1 million. The top 5 are all retail, delivery, or both (Amazon).

<https://stockanalysis.com/list/most-employees/>

next_xibalba•about 14 hours ago
4,000 employees (pre layoff). That’s quite large.
msteffen•about 15 hours ago
I wonder if some of these CEOs are anticipating a big crash and trying to lay people off now, so that (1) they can raise/hoard cash while the money-go-round is spinning and (2) their eng organization is already lean and used to it if/when the money-go-round stops.

“Because of AI” indeed.

kev009•about 15 hours ago
I think it's just the relative cost of money. Credit, debt, raises, revenue all rely on it. The tech industry got used to zero interest rate and then Covid-era stimulus. Now, suddenly, cashflow matters, but the companies are still run by the same people that only know perception management. Eventually they too will get cycled out.
Ancalagon•about 15 hours ago
not to mention SaaS stocks are down making the cost of borrowing against their stock more expensive
skeeter2020•about 15 hours ago
Bingo - the combination of rising interest rates and tanking SaaS valuations has left a lot of these companies - specifically PE funded with mountains of debt - in a very weak position. Funny enough I think small SaaS companies are in a good position, both ownership & their potential use of AI, while larger SaaS companies, are in a lot of trouble. Why rent SaaS when you can build applications with AI? but then, who's going to maintain them?
trgn•about 15 hours ago
but none of this applies to elastic. it's cash flow positive, and has such a cash hoard it's doing stock buybacks.
confidantlake•about 14 hours ago
Nah they are just following the herd. When everyone was hiring they hired, when everyone was firing they fired. Go along to get along.
gortok•about 15 hours ago
I recommended an elastic demo for a client that would be well served by Elasticsearch. The Elastic sales folks completely torpedoed the presentation by trying to focus on their AI “capabilities” and not on the recommended talking points. This was 2 years ago.
maxloh•about 14 hours ago
I wonder how much of the layoffs were caused by their license change in 2021.

They lost a lot of goodwill back then. Some of their potential customers migrated to OpenSearch and never looked back, even after they backed down and went open-source again under AGPL.

chopete3•about 10 hours ago
Unfortunately Elastic lost -60.54% market value in the last 5 years. Negative net income every year since going public.

The underlying message is a lot clear - they are a public company. They have to do this and more show to net positive income to keep the market value from falling further.

Companies can keep the employees with market value drop but it gets hard with negative income. Salesforce also lost ~37% value in last 5 years but they still print billions in net income every year.

The same story with companies like Gitlab. They lost 75% market value and negative income since going public.

ronbenton•about 13 hours ago
Here's my translation of this announcement: https://layofftranslator.com/layoffs/2026-06-24-elastic/
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bigyikes•about 15 hours ago
Why even bother with such a small layoff? Is there a reason to not just dial up your attrition for a while?
Legend2440•about 15 hours ago
Your best employees are the most likely to leave via attrition, because they have the most opportunity elsewhere.

In theory, a small layoff can target the least productive employees.

georgemcbay•about 14 hours ago
> Your best employees are the most likely to leave via attrition, because they have the most opportunity elsewhere.

But this remains true after a layoff and the layoff often acts a motivator for your best employees to start looking even if they weren't previously.

Usually they aren't thinking "well, glad I survived that layoff and now my job is safe forever", they are thinking "huh, is this a sinking ship? Maybe I should look around and see what else is out there..."

...speaking as someone that has been at several companies during layoffs...

rconti•about 14 hours ago
yeah, it seems like it would have to be accompanied by a pay bump for the ones you really want to retain... which is challenging from an optics perspective.
film42•about 15 hours ago
I've seen companies put a percentage of the team on a PIP as a "this is not a layoff but we do need to cut costs" situation. Hopefully Elastic is just being honest about it?
SpyCoder77•about 14 hours ago
In human terms, this is not a small layoff. Around 281 people's lives are being shaken up by this.
r-w•about 13 hours ago
I think that might be even worse for the mental health of the folks on the ground.
tonyedgecombe•about 1 hour ago
The anticipation is worse than the event itself.
trgn•about 15 hours ago
i dont understand this either. just dont hire for half a year or so, a generic globocorp gets to that 7% easily.
mh-•about 12 hours ago
One challenge is that when the market stops hiring as aggressively, voluntary attrition retracts as well.

Large companies model attrition in their financials, and those assumptions start to break when macro conditions around the job market shift like that.

Avicebron•about 15 hours ago
That doesn't boost the stock after the announcements, why would they do it?
trgn•about 14 hours ago
i dont think this announcement will boost the stock either, for the same reason we are wondering here why 7% is noteworthy for a globocorp.
wegwerper•about 14 hours ago
No way to prevent this says workers of only country where this regularly happens.

Unionize, brothers and sisters!

Bombthecat•about 4 hours ago
Seven percent sounds about right what AI can replace
tonyedgecombe•about 1 hour ago
The business has been losing money for years. Perhaps 7% is better than 100%.
dirtbag__dad•about 12 hours ago
> in some areas, especially customer-facing sales, we expect to keep adding to our teams to support future growth

Can someone help me understand why sales is immune to this strategy and still is employing the “more bodies” approach. I thought we were working smarter in 2026?

steelbrain•about 12 hours ago
In the US at least, it is illegal to do unsolicited outbound sales with a bot. You have to have humans make these calls.
SoftTalker•about 12 hours ago
Interesting. I'm in the US and I get half a dozen calls a day from AI bots. Where can I report this criminal activity?
steelbrain•about 12 hours ago
I'm not from the US, but based on my knowledge of your culture, it may be worth it to write a letter to your state's Attorney General
thayne•about 14 hours ago
> Customer expectations are increasing and evolving faster than ever before

Wouldn't that suggest you need those workers more?

vismit2000•about 8 hours ago
They should layoff everybody, close down the company, and just use postrgres full text search
delfugal•about 14 hours ago
For the good of the company we are reducing force by 7% even though those people we fired were instrumental in helping us grow. Insensitive PR tripe.
SpyCoder77•about 14 hours ago
Saying 7% in this scenario is the wrong choice. It diminishes the absolute number of ~281 people who just had their lives shaken up by this.
moron4hire•about 14 hours ago
ygouzerh•about 10 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...
khurs•about 13 hours ago
No mention of any details of the severance packages.

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

rootusrootus•about 13 hours ago
2-3 weeks per year of tenure
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nobleach•about 14 hours 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•about 15 hours ago
So how many people? I can't find this info anywhere.
dakrone•about 15 hours ago
There were around 4000 employees before this announcement, so around 280 people affected.
tedggh•about 11 hours ago
Why are these decisions never easy?
daft_pink•about 11 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•about 10 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...

iwontberude•about 12 hours ago
lol everyone quit using elasticsearch for opensearch. Elastic use to be pretty cool but that was over ten years ago.
qwertyuiop_•about 15 hours 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.

coolid•about 14 hours ago
this should we do this or no this is not right
sergiotapia•about 14 hours ago
> this requires us to move faster and operate leaner than we have before

:laughing:

> To do it, we're shifting our pace of innovation, simplifying how we operate, and investing in new skills. That's what this reorganization is for: a simpler structure, with fewer layers, less complexity, and less friction.

Translation: We're going to run the remaining people ragged.

> That means fewer layers, broader ownership, clearer accountability, and a sharper focus on the skills we believe matter most for what's ahead.

Yeah the people remaining are cooked.

It's never "we're going to hire more people to build lots of cool stuff" it's always giving fewer people quadruple the responsibility expectation.

gaiagraphia•about 14 hours ago
I'm sure these workers signed up to the "free market principles".

Too bad, so bad?

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