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Layoffs and CEO Resignation At OSDL

lisah writes "Big changes are afoot at Open Source Development Labs (OSDL) with today's surprise announcement of the departure of CEO Stuart Cohen and the layoff of nine other employees. Details are still emerging about what exactly this means for OSDL but according to a preliminary announcement, Cohen is 'leaving to pursue other open source opportunities' and OSDL is 'refocusing the scope of [their] work to better align resources with [their] revenues...'" The article also mentions the last year's layoff at OSDL.

37 of 158 comments (clear)

  1. Couldn't figure out that "?" by Anonymous Coward · · Score: 2, Funny

    I guess they never found the right "?" that would lead to "profit!"

  2. Ouch. by Deadguy2322 · · Score: 5, Funny

    Merry Christmas! This year we're giving you a pink slip!

    --
    Check out my foes list to see who is so retarded that they can't use the signature line!!!
    1. Re:Ouch. by tomstdenis · · Score: 2, Interesting

      Companies like GM and Ford saw the writing on the wall for the last 20+ years about cars being more practical than luxurious. If they didn't market and advertise contrary to those notions the general public wouldn't be so adverse to the notion of a practical car. Now you have more and more people wanting practical cars and they can't sell the monstrocities fast enough.

      Judging by the number of kia, toyota, honda, and the like I see on the road, practical is in. It's also interesting to note that these "import" cars are often made with more north american parts than the GM/Ford counterparts. In short, they were greedy and milked the "big bulky muscle SUV" style car too long. Now they have to redesign, retool, remarket, and win over their loyal customers with designs that are completely unlike what they had before.

      Maybe if the execs had the customer in mind instead of the shareholders they"d be profitable....

      Tom

      --
      Someday, I'll have a real sig.
    2. Re:Ouch. by mrchaotica · · Score: 3, Interesting
      So you are against companies that give consumers exactly what they want?

      First, GM: it did not discontinue the EV1 because "consumers" didn't want it; on the contrary, most people who leased one begged GM to let them buy it when the lease was up. So what did GM do instead? It destroyed the cars! Maybe you ought to actually watch that movie, as the parent suggested. Then you'll realize that maybe, just maybe, GM had an ulterior motive.

      Is that "giving consumers exactly what they want?"

      As for Microsoft, it got to where it is now in large part to shady deals (QDOS, OS/2, etc.) and illegal business practices. Ask the average person on the street and they'll initially tell you they want Windows, but if you prod them a little you'll eventually find out that what they really want is the applications that run on Windows, and that the OS isn't that great.

      Is "giving consumers what they want" the same as forcing them to take it?

      And what is SCO giving "consumers" nowadays? Lawsuits? I'm not even going to bother with this one -- the notion that SCO is doing anything that "consumers" want is just too absurd.

      Do "consumers" want to pay $699 worth of protection money?

      Finally, as for Wal-Mart... well, Wal-Mart doesn't belong on the list. (Sony does, though, but that's another rant...)

      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  3. Silly business-speak. by Lethyos · · Score: 4, Informative

    ... refocusing the scope of [their] work to better align resources with [their] revenues ...

    Or to put it in English: “we are not making enough money and we have to cut back.”

    Reminds me of this one study I heard a while ago that found the more obfuscated and elaborate the wording is used by companies the worse their financial situations are. Very appropriate in this case.

    --
    Why bother.
    1. Re:Silly business-speak. by Fnkmaster · · Score: 4, Informative

      Correct, but they aren't supposed to make money. To quote from their website: "OSDL is a nonprofit organization that provides state-of-the-art computing and test facilities to developers around the world."

      Non-profit, ya see?

    2. Re:Silly business-speak. by istartedi · · Score: 2, Insightful

      Some businessmen were born to "employ people", others to "utilize human resources". There are far too many of the latter; but we can't blame them totally. The other side of the equation is the worker who doesn't like the fact that he "works for them" and actually feels better being a "team member". Then there is the investor who probably doesn't buy companies that are "laying people off", but might be more interested in purchasing the stock of a company that is "engaging in refocusing the business and remaining agile". Everybody knows what they really mean. My favorite one is when a Washington, DC powerplayer who has fallen out of favor decides to "spend more time with the family". That one has become such a cliche that I think it's actually seems to have fallen out of favor in recent years. I don't know what is replacing it; but you can be certain something will. The need for sugar coating is probably as old as the human race.

      --
      For all intensive purposes, "whom" is no longer a word. That begs the question, "who cares"?
  4. Spooky! by OriginalArlen · · Score: 2, Interesting
    From this week's BOFH:

    I'm betting it says something about 'right-tasking', 'examining organisational structure' and identifying roles and the people best suited to them." "Yeah, sort of." "Then yes, they want to get rid of someone."
    --

    Everything I needed to know about life, I learnt from Blake's Seven
  5. Re:Little revenue obtained making free software? by gstoddart · · Score: 4, Informative
    The single biggest attraction of open source is that as a big corporation, you can leech the efforts of thousands of unpaid but experienced contractors and never once feel the need to give back. (e.g., Thanks Apache!)

    Eh? There have been numerous times where I've grabbed some nice-free Apache software and used it for my purposes. Tomcat, xerces, xalan, jakarta, and a bunch of other things.

    Apache is giving back by providing us with a huge amount of useable software that we're allowed to use to solve our own problems. Much of it has solved some of the tedious bits one would rather not have to write onesself.

    How exactly is Apache leaching off developers other than being a central point where OSS developed code can be found by all? (Like that's a bad thing or something.)

    (I'm specifically curious about this, I've always thought Apache was a good netizen and a place to get some useful stuff.)

    Cheers
    --
    Lost at C:>. Found at C.
  6. Re:Scope of work in line with revenues means... by DietCoke · · Score: 2, Funny

    Nothing is *something*. As a result, it requires proper budgeting, processes, allocations and mission statements.

  7. Re:Little revenue obtained making free software? by xxxJonBoyxxx · · Score: 2, Insightful
    How exactly is Apache leaching off developers other than being a central point where OSS developed code can be found by all?
    I think you missed my point: Apache isn't itself the leech. The multibillion dollar oil company that runs Apache all over the place and hasn't ever contributed a cent to the Apache project is.
  8. don't think of them as layoffs by Anonymous Coward · · Score: 5, Funny

    think of them as being released to the public, free of charge

  9. Re:At least the CEO didn't get fired by Webmoth · · Score: 2, Funny

    Actually, he was Open-Sourced.

    --
    Give me my freedom, and I'll take care of my own security, thank you.
  10. Non-profits need business models too... by xxxJonBoyxxx · · Score: 3, Insightful
    The fact that they aren't making lots of money is therefore not a failure of a business model, but the fact that they are a non-profit, with perhaps a poorly defined mission, that as a result has difficulty attracting lots of sponsorship money...
    Non-profits need business models too, preferably built on the strength of a brand and/or the willingness of profitable businesses to build their own brands through them. For examples, see the United Way (tie-ins w/ the NFL, etc.), the Red Cross (sells blood with markup) and the Komen Foundation (tie-ins with every homemaker product ever invented).
  11. Re:Little revenue obtained making free software? by aevans · · Score: 2, Insightful

    What about the other multibillion dollar oil company that runs Apache and has contributed money and code to the Apache project, but hasn't contributed a cent to Linux kernel development (which the first multibillion dollar oil company happens to host a high bandwidth mirror of, and has contributed bug reports to?

  12. Non-profit still has to pay the bills by Mustang+Matt · · Score: 2, Insightful

    They have to cover their costs, so if they can't make $500,000 to cover the CEO and employees salaries + benefits they have to cut back.

    I've never understood how this is non-profit. The company doesn't profit and doesn't have investors. I guess that's the difference.

    Just like Mastercard is non-profit.

    --
    The man who trades freedom for security does not deserve nor will he ever receive either. - Benjamin Franklin
    1. Re:Non-profit still has to pay the bills by NineNine · · Score: 2, Informative

      I've never understood how this is non-profit.

      At the end of the financial year, there is no profit to be paid out to the owners. It all goes back into the company. Realistically, in this case, you're right... a lot of it goes to salaries. Although, you can't claim to be a "non-profit" company, and pay the CEO a kajillion dollars. Once you're a non-profit, then the IRS watches closely to make sure that people are paid reasonable amounts. You can't use it as a tax loophole (otherwise, every company on the planet would be a "non-profit") company. But, you're right, you still have to cover your expenses like any other company, or you have to close the doors and sell the Aeron chairs.

    2. Re:Non-profit still has to pay the bills by DerekLyons · · Score: 5, Informative
      I've never understood how this is non-profit.
      At the end of the financial year, there is no profit to be paid out to the owners. It all goes back into the company.

      True
       
       
      Realistically, in this case, you're right... a lot of it goes to salaries. Although, you can't claim to be a "non-profit" company, and pay the CEO a kajillion dollars.

      False. There are no limits to the salaries than can be paid to the employees of a non-profit. (Being the CEO or Chairman of a large charity can be quite lucrative.)
       
       
      Once you're a non-profit, then the IRS watches closely to make sure that people are paid reasonable amounts.

      False. The IRS doesn't scrutinize the return of any single non-profit than do any single individual or business.
       
       
      You can't use it as a tax loophole (otherwise, every company on the planet would be a "non-profit") company.
      Partly correct - non profits are chartered, and must operate within that charter. Theu can't be chartered unless they are a (generally speaking) charitable, social (fraternal), or educational organization.
  13. What happened? by Laser+Lou · · Score: 3, Funny

    Did Linus ask for another raise?

    --
    No data, no cry
  14. What actually happened? by TopSpin · · Score: 2, Interesting

    OSDL is 'funded' by a collection of corporations. As far as I know they don't actually sell anything. So, either their funding was cut, or they have mismanaged themselves into a deficit. Which is it? Anyone actually know? I suppose their recent IP projects have led to high legal costs, but I'll bet someone reading /. knows the truth.

    --
    Lurking at the bottom of the gravity well, getting old
  15. OSTG is next. by Anonymous Coward · · Score: 2, Funny

    Look out, Slashdot "editors". Talk about a job that can be easily replaced with a script.

  16. Re:Little revenue obtained making free software? by warpSpeed · · Score: 2, Insightful
    ...Apache isn't itself the leech. The multibillion dollar oil company that runs Apache all over the place and hasn't ever contributed a cent to the Apache project is.

    Where does this monitary obligation come from? The license under which Apache is distributed under spells out the responsibilities of the user who downloads the software. If the Apache creators and maintainers wanted money, the should have spelled it out in the license.

    The fact that the these oil companies that you speak of have "multibillion dollars" does not raise the licenes requirments, it is the same for everyone!

  17. Re:Little revenue obtained making free software? by dedazo · · Score: 3, Insightful

    Relying on the inherent goodness of humans (or corporations) is naive at best. You can't come up with this super-wonderful new "business model" wherein you give everything away and then sit there and pout when people don't behave the way you idealistically expected them to.

    --
    Web2.0: I love when people Flickr my cuil and digg my boingboing until my google is reddit and I start to yahoo
  18. Re:So by squiggleslash · · Score: 2, Funny

    Sadly yes. Word is they're tapping Theo DeRaadt to take over kernel development, but this will be a part time, unpaid, position. Overall management of the direction of Linux will be given to Avie Tevanian, late of Mac OS X fame.

    Also Alan Cox has announced he's leaving voluntarily to persue other interests. No replacement has been announced, though apparently Eric Raymond, Hans Reiser, and Kevin Warwick are being named as possible successors.

    Developing...

    (Note to mods: I'm going for +5 Funny, not -2 I don't understand the joke)

    --
    You are not alone. This is not normal. None of this is normal.
  19. Re:Little revenue obtained making free software? by toadlife · · Score: 2, Insightful

    "Relying on the inherent goodness of humans (or corporations) is naive at best."

    Yet, history has shown that if the project is good enough, the inherent goodness of humans is enough. Apache, XFree/Xorg and the BSDs may not be raking in mega-millions of dollars, but they keep on keeping on year after year.

    --
    I don't always use unix-like operating systems; but when I do, I prefer FreeBSD.
  20. Re:Little revenue obtained making free software? by Zapman · · Score: 3, Insightful

    Leach?

    The promise of FOSS is that you get the source code to do what you want with it. No matter who you are. If you make changes, and distribute them (assuming the GPL), you have to distribute your code changes as well.

    They (your Oil Company) are taking the code, compiling it, and using it as it was intended. That's not leaching.

    The license cuts both ways. There's no requirement to pay for it. Whether your some kids in your garage, saturating your parents DSL line to upload data to youtube, or a multinational oil company saturating a bunch of OC-3 lines.

    Would it be 'nice' of them to contribute back? Sure. But we can't speak ill of them for not (Though I'd be willing to bet that there are a few code patches coming from said Multinational Oil).

    --
    Zapman
  21. And the new CEO is... by ziggamon2.0 · · Score: 2, Funny

    After a quick vote between stakeholders: ...

    CowboyNeal!

  22. I'd like to take this opportunity... by NineNine · · Score: 4, Insightful

    I'd like to take this opportunity, after countless Slashdot posts about "Everybody should know how computers work", that perhaps what would be more useful if everybody instead learned a bit about how business works. I think that the OSS community has pooh-poohed the importance of basic business knowledge long enough, as is obvious from the overwhelming non-success of OSS companies.

    1. Re:I'd like to take this opportunity... by NineNine · · Score: 3, Insightful

      OSDL is shrinking (again) by 33%. VA Software (The owner of Slashdot) is still bleeding. Linspire has largely flopped. Novell is only making money because MS just gave them a big cash infusion. Red Hat is the only OSS company out there making any money, from what I can tell, and even Red Hat is in trouble from the big boys (lots of other people agree... lots of short selling of their stock.

      There simply are not many OSS companies out there that are really financially healthy.

    2. Re:I'd like to take this opportunity... by TopSpin · · Score: 2, Interesting

      While you may have a point, it doesn't really apply in the case of OSDL. OSDL isn't a business in the sense of cost vs. revenue. It is a non-profit organization, funded by sponsors. So, unless the sponsors cut funding and/or OSDL mismanaged itself into a hole, this shouldn't be happening. The sponsors supply a budget and, assuming you have the ability to forecast costs with at least some competence, there should be no dramatic shortfalls.

      I'm confident the sponsors haven't cut funding or it would have been news here at /. and elsewhere. How would you keep people that work on open source software from leaking that Intel or HP have walked away? Not likely. That means OSDL is being run poorly by the powers that be.

      --
      Lurking at the bottom of the gravity well, getting old
    3. Re:I'd like to take this opportunity... by DerekLyons · · Score: 2, Insightful
      I'd like to take this opportunity, after countless Slashdot posts about "Everybody should know how computers work", that perhaps what would be more useful if everybody instead learned a bit about how business works. I think that the OSS community has pooh-poohed the importance of basic business knowledge long enough, as is obvious from the overwhelming non-success of OSS companies.

      The OSS community knows quite well how business works. Their failing is that they confuse a philosophy/belief system with business.
  23. Re:Little revenue obtained making free software? by NineNine · · Score: 2, Insightful

    True, but an open source project doesn't take much to run - just a server and some bandwidth, and the bandwidth needs can be minimized via judicious mirroring.

    Uuuh, ok. That's like saying that all you need to run a successful business is a cash register. If these projects are run like hobbies, and you don't expect any kind of widespread useage or support, then yeah, slap it up on a web server, and be done with it. If you want it to be successful, than it needs to be run the same as any other successful business.

  24. Re:Little revenue obtained making free software? by Sponge+Bath · · Score: 3, Insightful

    I'm not saying it's good or bad.

    I would say using an open source product without contributing code or cash is still a subtle good. Wider use means:

    * Wider testing (If it doesn't work, even leeches will bitch)

    * Indirect advocacy via increased market share

    * Increased interoperability between entities using FOSS

  25. Re:Little revenue obtained making free software? by porl · · Score: 2, Funny

    so you are saying that if too many people download the apache code then there will be less copies left for others?

  26. Re:At Least the CEO Also Leaves by Jesterboy · · Score: 2, Insightful

    Personally, I'm wondering if Cohen's departure has anything to do with his position on the Novell/Microsoft deal? (look at the section labeled "Good for the Open Source Community")

    While I enjoy imaginations of Linus giving Stuart Cohen the metaphorical/physical boot, I think the realistic interpretation of "leaving to pursue other open source opportunities" means "huge bed of cash to land on from Novell/Microsoft deal". After all, work with Novell is still considered "open source" in letter if not spirit. Perhaps he has a new job coinciding with Novell's plan to add support for Microsoft's OpenXML document type to Open Office?

    Something about it smells fishy to me...

  27. I disagree by shaneh0 · · Score: 2, Interesting

    "Ask the average person on the street and they'll initially tell you they want Windows, but if you prod them a little you'll eventually find out that what they really want is the applications that run on Windows, and that the OS isn't that great"

    I think they'd probably say that what they REALLY want is the applications that run on Windows and that the OS is irrelevant. I really doubt that most people have negative or positive feelings about Windows. An analogy that I think is somewhat apt is that of airline travel. Nobody cares whether they fly in an Airbus or a Boeing. The vast majority don't even know the difference, or that there is a difference. The only difference they see is what their specific Airline (PC Maker) does to differentiate their plane (Windows) from their competitors. Furthermore, I think if you told people that there was another airline manufacturer, and that it would be cheaper to fly on airlines that buy from that company, and that companies airplanes crash less, the biggest thing you'd get from customers is skepticism. They have brand loyalty. They like Delta (Dell) and they don't have a problem with Delta crashing, and they hear about crashes, but it's not often, and it's not very serious.

    In other words, Linux solves a problem that most people don't have. They don't know or care about their OS. They don't want to. I use my XP PC 10 hours a day, 7 days a week, and I seldom have a crash. This idea that Windows just doesn't serve an average user, I think, is misguided. It does just fine.

    And before you deride Microsoft for it's business practices, remember this: One mans "shady deals" is the next mans "capitalism." Despite corporate personhood, a corporation itself needs no ethics or morals. The people that run it should have them, but not the company itself. The most unethical thing that a company can do is sacrifice profits because you're worried about making people like you and giving them warm fuzzies. Did Microsoft screw IBM over OS/2? Yes. Has IBM screwed over people in its past? I'm sure they have. But did Microsoft do something wrong? No way. Microsoft didn't have a monopoly back then. I think NT beat OS/2 to the market by a small margin, if at all. I'm not positive about that, but I know they were released near each other. If OS/2 was the better product, it would've succeeded in the market place.

    And about QDOS, here is the excerpt from Wikipedia:

    "SCP later claimed in court that Microsoft had concealed its relationship with IBM in order to purchase the operating system cheaply (even though Microsoft was still under a nondisclosure agreement and the PC's degree of success was not widely foreseen)."

    This seems to me like a "boo hoo hoo" deal. SCP sold them a nonexclusive license. They obviously wanted to make the sale so badly that they sold it for what they thought a small company could afford. This was a BAD BUSINESS DECISION on their part and was not Microsofts fault. Especially considering that, according to the same article, Microsoft was under a non-disclosure agreement with IBM. It would have been not only unethical, but opened them up to tort if they disclosed their relationship with IBM.

    Microsoft isn't candyland. I'm not saying that I would want to invite the company to my house for christmas dinner. But this is business, in America. It's ruthless and cut throat and unforgiving, and that's one of the reasons that America is the most powerful economy in world history.

    A far more important measure of a Business than how they treat their competitors is how they treat their employees and their customers. Look at software prices. Windows is expensive but it's not unduly expensive. Look at how many software packages sell for tens of thousands of dollars. Windows, maybe the largest "application" ever built sells for a couple hundred. Yes, they do try to extract every dollar from their customer that they possibly can, but since when is that unethical? Apple does it. They could, if they wanted to, provide a way to upgrade the device or

  28. Unfortunately, it's about time this happened. by Bruce+Perens · · Score: 3, Interesting
    The CEO who left had his head handed to him by the membership, and if they didn't actually tell him to go, staying would not have been very pleasant. Endorsing the Novell thing wasn't too smart, and they were very upset. And he's said to have promoted the GPL3 story to Forbes, which also pissed off the membership tremendously. Other than that, Oracle won't join (Wim said he feels that OSDL doesn't operate in Linux' best interest, which I think is correct), Andrew Morton walked out and went to work for Google, and OSDL can't get enough members to stay afloat financially.

    Let's cross our fingers and hope that OSDL goes in a better direction now.

    I don't know anything about the other laid-off folks and suspect they were innocent bystanders.

    Bruce