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Layoffs at OSDL

daria42 writes "Open Source Development Labs - which employs Linus Torvalds - has apparently cut nine of its fifty-seven staff (although Linus has retained his job). The cuts come as the organisation re-structures. It will establish a European office and expand into Asia. "We're a small enough organisation that what would be a small change in focus for a bigger company has a large effect on us," said a spokesperson."

39 of 179 comments (clear)

  1. Restructuring Methods by mfh · · Score: 5, Interesting
    Let's hope this isn't a three-round layoff. Generally speaking, whenever a company plays the layoff card, they do it three times:
    1. No brainers: the people who most deserve to go, and who everyone agrees
    2. The group of tough choice cuts, generally 60% of the first round, and not often based on performance but more so on overshadowing
    3. The painful cuts who don't deserve to go but they have to cut 40% of the last round numbers, so these will have to do
    But of course since this is to enable the company to move into Europe, and not due to financial problems -- then perhaps this will be the only round as they will be rehiring these positions in a new office. I like the idea that they will be hiring new locals.
    --
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  2. I don't know what by bigman2003 · · Score: 4, Insightful

    What exactly is their income anyway? Do they have a revenue stream?

    I would be surprised if nobody donated a ton of cash, to say that they are paying Linus' salary.

    --
    No reason to lie.
    1. Re:I don't know what by diegocgteleline.es · · Score: 4, Informative

      About Osdl

      OSDL - home to Linus Torvalds, the creator of Linux - is dedicated to accelerating the growth and adoption of Linux in the enterprise. Founded in 2000 and supported by a global consortium of IT industry leaders, OSDL is a non-profit organization that provides state-of the-art computing and test facilities in the United States and Japan available to developers around the world. OSDL's founding members are IBM, HP, CA, Intel, and NEC. A complete list of OSDL member organizations is provided on the member page at OSDL Members.

    2. Re:I don't know what by BreadMan · · Score: 5, Informative

      They apparently collect monies from different membership levels. For a smallish sized organization that wants to participate in the decision-making, you're out 12K. Once you get beyond a bronze membership, it looks like OSDL wants some cut of your revenue stream. Membership gets you a voting slot on some working groups.

      That's a lot for what's really a club membership, without the golfing and semi-nice place to eat. For most like vendors, OSDL membership doesn't drive sales and on the technical side, you can be a free-rider. IMHO, this doesn't look like a winning business model.

    3. Re:I don't know what by BreadMan · · Score: 2, Informative

      Non-profit != not profitable && Non-profit != charity :-)

      No matter what non-profit your running, you still need to make money above your expenses to fund expansion, capital investments and keep a few bucks around for a rainy day or unexpected expenses.

      In the US, there's rules for how much you can retain depending on how you solicit funds. I can't recall the particulars at this point, sorry... Non-profits operating as charities that keep large margins between income and expenses can still get around these rules be setting-up special funds or endowments.

  3. 'Center of Gravity' by thouth · · Score: 5, Funny

    "The organisation, which calls itself the "centre of gravity" of the Linux movement" How can they possibly be serious? Judging from the average weight of people at a LUG...

  4. Balance? by toupsie · · Score: 3, Funny
    The organisation (sic), which calls itself the "centre of gravity" of the Linux movement, made the cuts as part of a plan to rebalance its work force


    Wow, they cut workers on both sides of the fulcrum. Sweet!


    On a side note, doesn't ZDNet have a spell checker?

    --
    Strange women lying in ponds distributing swords is no basis for a system of government.
    1. Re:Balance? by ChaoticCoyote · · Score: 5, Informative

      Actually, "organisation" and "centre" are valid spellings of those words.

  5. Re:Outsourced ?. by Anonymous Coward · · Score: 3, Insightful

    Um, you want open source in India? Make some.
    Opensource is where people code it, mostly.

  6. Outsourced by dan14807 · · Score: 2, Funny

    It will establish a European office and expand into Asia.

    Lets be honest here. They are outsourcing those jobs. Hey, I'm not complaining. Hooray for the Europeans and the Asians. But the US is slipping further and further behind in the world of techonology.

    1. Re:Outsourced by DavidNWelton · · Score: 4, Insightful

      Europeans are, at this point, probably as or more expensive, especially considering the weak dollar.

      It's not outsourcing, it's expanding. Linux doesn't just exist in the US, you know. There are big opportunities in other parts of the world, and apparently they want to be there.

    2. Re:Outsourced by Temkin · · Score: 2, Informative



      So when Linus moved to the US from Europe back in the 90's, did Europe complain that Linux development was being "outsourced"?

    3. Re:Outsourced by cranos · · Score: 2, Interesting

      Yes because everyone knows that Open Source Software is only developed in the US and Europe and Asia offer cheaper developers.

      What the fuck? I mean seriously this got and insightful mod? People get a clue here!

    4. Re:Outsourced by dan14807 · · Score: 4, Insightful

      It's not outsourcing, it's expanding. Linux doesn't just exist in the US, you know. There are big opportunities in other parts of the world, and apparently they want to be there.

      They are firing people in the US and replacing them with people not in the US. You could make the "expanding" argument if they weren't doing the firings. They are not "expanding". They are relocating.

    5. Re:Outsourced by BillyBlaze · · Score: 2, Insightful

      Maybe if the US fixed it's broken and steadily worsening IP policies, it wouldn't be about to be overtaken by so many countries in the IT sector, and this kind of thing wouldn't happen.

  7. Probably not a big deal. by Nytewynd · · Score: 4, Insightful

    Anyone that has ever worked for a small programming shop knows this probably isn't a huge event. It sounds like of the 9 people let go, most were not programmers. They probably got rid of some sales and marketing people to prepare themselves for an investment. A lot of times to take larger amounts of venture capital, you have to clean house to prepare to take on execs from the VC firm. We had to name one of their board members our President. They also gave us a marketing guy, and sales guy. It is part of selling your soul to make money.

    Hopefully they didn't ditch anyone too integral to the programming. Also, they mentioned consulting positions, so they might have simply decided to not renew some contracts. Without the breakdown of what positions were downsized, it's hard to tell what they are doing.

    The one thing that happened to our company during this process is that some of the engineers got fed up (myself included) and left. We had about 15 people total and only 5 were programmers by the time the restructuring finished. Imagine this: 10 people telling you that we need Product X yesterday, and it gets added to your list of 10 other things that were promised to your top clients.

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    1. Re:Probably not a big deal. by Nytewynd · · Score: 2, Interesting

      When you have a small shop, you don't need extra receptionists. When your main function is to turn out code, all that matters is that you have talented programmers and someone with a direction for the company.

      I never said that receptionists were useless. On the other hand, if a company doesn't need receptionists then it isn't thier duty to hire them just so they can pay rent. If you need to downsize, you get rid of non-critical personnel first. Receptionist are definitely in that category, especially since they are most easily replaced out of any staff members.

      Downsizing is never a fun thing, but there is a clear pecking order.

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  8. It already is by WindBourne · · Score: 5, Insightful

    OSS is whatever you contribute. There no real dollars chasing OSS based on where you live. It is based on how much you contribute. If you contribute a lot, you will find that HP, IBM, even OSDL would hire you.

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  9. Re:Outsourced ?. by B747SP · · Score: 2, Interesting
    Also Opensource should be world wide - based on the distribution of intelligence rather than $$$

    That's precisely why there's very little significant OSS coming out of India. Read The Cathedral and the Bazaar and Homesteading the Noosphere and then read The Magic Cauldron. Take particular note of the bits about 'massive independant peer review', the ownership, tenure, customs and in particular the discussion of the quality of the programmers that make it in open source.

    When you're done there, pick any forum on any web site anywhere in the world and look at the discussions of outsourcing to the third world and the devastating quality, communication and reputational problems that companies that make the mistake of outsourcing to India and similar third world countries suffer. Look at the standing joke that IBM, Dell, and Telstra technical support have become as a direct and specific result of their corporate decision to outsource to India.

    Then come back here again and explain to us how exactly OSDN opening an office in darkest India would be a good thing.

    this oughta be good.

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  10. Most typical line ever by mattmentecky · · Score: 2, Insightful

    The cuts come as the organisation re-structures.

    This has to be the most used line ever when talking about layoffs. One day I want to see a press release about layoffs from some company "Eh...we laidoff people just for the hell of it...we're perfectly structured we just wanted to shake things up a bit. To keep our employees on their toes."

    1. Re:Most typical line ever by gimple · · Score: 2, Funny

      Or how about:

      "We had some dead weight around here, and we wanted to avoid lawsuits for firing them. So, we decided to call it a layout due to restructuring."

    2. Re:Most typical line ever by Nytewynd · · Score: 3, Interesting

      "We had some dead weight around here, and we wanted to avoid lawsuits for firing them. So, we decided to call it a layout due to restructuring."

      That's a common one too. I worked for a startup that laid off about 20% of their workforce because the CEO was an idiot and didn't get enough business. To save face, he told some of his buddies that ran the other programming firms in the area that he cut out some dead weight. The 20% of the people let go were mostly really good developers that were let go because they weren't on any projects. They had a hard time getting new jobs because some of the other area companies thought they were dead weight. If it were me, I probably would have sued my previous employer for slander.

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    3. Re:Most typical line ever by gosand · · Score: 2, Informative
      This has to be the most used line ever when talking about layoffs. One day I want to see a press release about layoffs from some company "Eh...we laidoff people just for the hell of it...we're perfectly structured we just wanted to shake things up a bit. To keep our employees on their toes."

      Actually, sometimes it actually IS restructuring. Maybe it is too expensive to do your own customer service, so you hire a customer service company to do it for you. What to do with your current employees in that area? Maybe you are getting out of direct sales and going fully to a partnership model. Bye-bye direct sales people. Or maybe you are moving part of your business to another country, and nobody wants to relocate.

      I am all for eliminating double-speak, but companies do re-structure.

      --

      My beliefs do not require that you agree with them.

  11. If you're fired by an Open Source company... by xxxJonBoyxxx · · Score: 4, Interesting

    If you were fired by a company that paid you to write Open Source, would you still develop it? If so, I can see how management would say, "what's the point of paying you, exactly?"

    1. Re:If you're fired by an Open Source company... by Anonymous Coward · · Score: 3, Insightful

      The laid off programmer would find another job. If that job pays him to do the same thing, great. If not, here's why you'd want to keep paying him:

      I have a job writing proprietary software, which I don't like, but at least it puts food on the table. In my spare time I write open source software. All the five minutes of spare time (average) per month that I am not burnt out from work. Expect a 0.0.1 release around this time the next millenium, if I'm not dead by then.

    2. Re:If you're fired by an Open Source company... by Skye16 · · Score: 3, Insightful

      Well, there's the difference between 8-14 hours of development per day and 2-3 hours every few days. These people you're referring to probably aren't going to live on the street and eat out of a dumpster just to keep developing.

    3. Re:If you're fired by an Open Source company... by turgid · · Score: 2, Insightful
      My point is that most developers need to earn a living. They will obviously be able to spend more time developing if that's what they're paid to do, than if, say, they had to work as a security guard to pay the rent and wrote code on their days off.

      Many of the major Open Source and Free Software projects these days are actually done by professional developers, e.g. the Linux kernel, Red Hat, SuSE, MySQL, gcc, Eclipse, ...

      At the moment, it's cheaper to hire developers in China and India rather than the USA or Europe. People in the USA and Europe are being made redundant and their jobs are going to the Far East. That's where my old job went.

  12. Re:Outsourced ?. by MosesJones · · Score: 4, Insightful


    Or maybe it just shows how little you know about what is being developed where.

    The myth that US software developers are so much better than their Indian counterparts is just crap. And the idea that Dell support was any good when it was on shore is just plain baloney. It was rubbish then, now its rubbish and cheaper with a more dodgy accent.

    You do know of course that many of the finest mathematicians on the planet are Indian. That senior posts in many technology companies in the US are taken by Indian people, not because they are cheaper but because they are better.

    Rather than moaning, and slinging mud, about elements moving to India, wouldn't it be better to ask how come all these "superior" US developers couldn't break a 50% success rate on projects. Not so hot

    As a friend of mine said

    "We like to pretend that its India thats rubbish, in fact its pretty much everyone".

    And the worst lot are the ones who moan that the other guy is crap, while never checking out the fact that they are worse.

    --
    An Eye for an Eye will make the whole world blind - Gandhi
  13. Re:Outsourced ?. by Cylix · · Score: 3, Informative

    Woooah...

    Hold the phone thunder.

    Before they outsourced, I could call up Dell parts and give a base description and get a part.

    Now, if I call up Dell parts I have to search the internet for the part number and give that to them.

    Pretty much the same thing for anything else involved in support now.

    The quality has gone down hill and no matter how you want to spin it... you can't change that fact.

    --
    "You should always go to other people's funerals; otherwise, they won't come to yours." -- Yogi Berra
  14. Re:Outsourced ?. by NCraig · · Score: 2, Funny

    Congratulations on creating the ultimate Slashdot Moderator's Dilemma. Your deft combination of hippy manifestos and racism is guaranteed to confuse!

  15. Indeed, the US is not where the growth is. by ahfoo · · Score: 3, Insightful

    You're absolutely right that expanding into Asia and Europe is hardly synonymous with outsourcing. It's more like being realistic about where the growth is in IT. I'm suprised they aren't also setting up in Brazil.
    The key markets for information technology in the next few decades are not the US, Western Europe or Japan. The key markets key, as in where the majority of goods will be purchsed and consumed-- are Mainlaind China, India, Eastern Europe and South America.
    Where do I get that idea? Easy, hardware manufacturers. People in the wealthy nations often have a hard time imagining how hardware can get any cheaper and still remain profitable and yet it does relentlessly continue to decline in price. The answer to how it remains profitable is simple, volume. And that volume cannot and will not exist in the highly profitable and yet relatively sparsely populated wealthy countries. There simply are not enough consumers.
    So, as a manufacturer, you simply enter new markets by lowering your costs until the real masses, the billions, can afford your products. And you can bet that WiMax is going to be one of the enabling technolgies that is going to make this push into the "third world" happen all that much faster.
    Which means it makes perfect sense for OSDL to have a real presence in these markets. In fact, you could argue they're moving too slowly.
    But none of that has the slightest thing to do with "outsourcing". It's just the reality of where IT is going.

  16. Re:Outsourced ?. by Dogtanian · · Score: 2, Interesting

    You do know of course that many of the finest mathematicians on the planet are Indian.

    With respect, the population of India is absolutely massive, so of course there are going to be more great Indian mathematicians than those from Malta. (You don't need to be a great mathematician to figure that out ;) )

    That having been said; yes, the Indians do have a good reputation for mathematics and the like.

    I can think of one other country that seems to have a disproportionate amount of technically gifted people... Iran.

    Anyone want to take *that* ball and run with it?

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  17. Re:Outsourced ?. by Anonymous Coward · · Score: 2, Insightful
    The myth that US software developers are so much better than their Indian counterparts is just crap. And the idea that Dell support was any good when it was on shore is just plain baloney. It was rubbish then, now its rubbish and cheaper with a more dodgy accent.


    Yeah, and while you're at it fanboy why don't you also explain to the PHB's that not all Indian engineers are super geniuses. My wife's company regularly poaches from the top five percent of their graduates and then brings them up to the US on H1B's, and then magically all of the MBAs seem to think that "OMG... Indian engineers are all geniuses!". From what I've seen a number of them are pretty goddamned lazy, too.

    You do know of course that many of the finest mathematicians on the planet are Indian. That senior posts in many technology companies in the US are taken by Indian people, not because they are cheaper but because they are better.


    As theorists, sure. As far as actually DOING SOMETHING WITH IT give me the Russians and other former eastern bloc math guys. Additionally, I'll put the creativity and practicality of US engineers against the overly academic Indian engineers any day of the week. My biggest laugh is working with engineers from the EU: all theory and very little if any application. And if you'd been paying attention you'd know that Waterloo up in Soviet Canuckistan whips damned near everybody's ass because they're good theorists AND good engineers..

    In addition I've been seeing an increasing number of software engineering projects coming BACK to both the US and the EU because India just flat the hell out couldn't deliver.

    Outsourcing is not going away, but it is not a universal panacea, and I find it gratifying that a number of major companies got burnt by it.
  18. Re:Outsourced ?. by rxmd · · Score: 2, Informative
    And was written by a member of the swedish minority there, people who get are viewed by the locals with the same benvolence extended to puerto-ricans in the US.
    This is nonsense. There has been an Swedish minority in Finland ever since the country was a Swedish province; they're well established in society, and the Swedes are pretty much an integral part of the Finnish nation. Finland has a rather liberal system of minority and language rights. Finns learn Swedish at school. And while Finns might sometimes consider the Swedes somewhat arrogant and uppish, comparing them to the situation of Puerto Ricans in the US is just uninformed.

    (Disclaimer: I'm neither Finnish nor Swedish.)
    --
    As a state gets corrupt, its laws multiply; the most corrupt states have the most numerous laws. (Tacitus, Annales 3:27)
  19. Was Andrew Tridgell one of the unfortunate? by kk49 · · Score: 4, Interesting

    Not that I'm paranoid or anything.

    --
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  20. I can see you've never run a small company by MarkusQ · · Score: 5, Insightful

    If you need to downsize, you get rid of non-critical personnel first. Receptionist are definitely in that category, especially since they are most easily replaced out of any staff members.
    I can see you've never run a small company. If you had, you'd realize that a good (or bad) receptionist can make (or break) your business. Think about it--here is one person who typically talks to every employee several times a day, and most of your customers every week or two. The person who watchs who and what enter and leave, gets to see the unguarded moments, the body language, hear the idle gossip--in short, the best clue catcher you'll ever have.

    I'm always amazed at the money people will pay consultants for clues they could have gotten in far less time just by asking the recptionist. Often, the receptionist is the only person in the whole outfit that sees the big picture.

    --MarkusQ

  21. Re:Heh by Anonymous Coward · · Score: 2, Insightful

    Proof that this place needs a (-1, WTF?!) moderation.

  22. Does it have any influence... by marcosdumay · · Score: 2, Interesting

    ... of software patents?
    It would be very interesting to OSDL to be on countries that doesn't acept software patents.

  23. It's sad when outsourcing mixes with open source by WillAffleckUW · · Score: 3, Insightful

    The cuts come as the organisation re-structures. It will establish a European office and expand into Asia.

    This is bizspeak for what the rest of humanity calls outsourcing.

    Pretty words to hide real actions.

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