“You can work from home… if by home you mean the office.” – Zuck, probably
Hey there carnivores,
Markets were down on Thursday, dragged down by energy and tech stocks.
And today we’re talking about Facebook’s new WFH policy.
Jeff & Jason
Doing Work From Home
Mark Zuckerberg, in a rare display of human emotion, felt for his employees on Thursday. Zuckerbot announced that he and the rest of Facebook leadership will be revising the company’s work from home policies as the COVID-19 stay-at-home orders begin to wind down.
Facebook’s new WFH policy will only apply to new Senior Engineer positions in the US. Read: nerds. Specifically top-of-the-food-chain nerds. Those new hires will need to get team leader approval, and current senior engineers will need to apply for the right, which will be based on performance reviews. Seems like a lot of work… I’ll just go back to the office.
Eventually, Zuck says the policy will be rolled out to those beyond the engineering department. The goal? Within 10 years, as many as half of FB’s 45k employees will be remote… or at least have the option to be.
Facebook’s not the only company to explore loosening the shackles of employees that are typically chained to their desks. Coinbase, Shopify, and Twitter said that most employees will be working from home for the time being.
“Can’t wait to move somewhere affordable” – all Facebook employees, probably.
Not so fast poindexter. While the move to WFH sounds enticing, there’s a catch. Employees must stay in the Bay Area.
Facebook told employees that they must notify the ‘Book if they’ll be moving elsewhere by January 1 of next year. Anybody who leaves Mordor, I mean Menlo Park, will have their “compensation adjusted” for their new location. So, a Facebook workload on a Sacramento salary? Not as enticing.
The bottom line…
Could we be seeing the end of the office as we know it?
With Big Tech leading the way, there’s a good chance that other industries will follow suit (fun fact: tech firms pioneered open office concepts) and cut the overhead. Keep in mind that for many companies real estate remains one of its largest expenses.
This shift might also put added pressure on HR and recruiting departments. With this precedent set, how long before every new hire starts demanding WFH rights in his or her contract as a performance incentive? Only time will tell.
☑️ Inside job.
Unfortunately, for another 2.44M every day is Saturday, according to the Labor Department. That number, based on new claims for unemployment insurance for the seven-days ended May 16th, was higher than the 2.35M expected by economists. Always lowballing, those economists.
But fear not, the number of people moving their happy hours to Monday morning has been on a steady decline since it peaked at 6.9M the last week of March. The number is down about 1M from just last week.
All in, there have been 44M unemployment claims since mid-March. At this rate, we won’t have much to celebrate come Labor Day.
Who says IPOs are dead?! Insurance company SelectQuote shares jumped 36% yesterday after it launched on the NYSE. It was the first “major” IPO since drug-development company PPD took its talents to the public markets in February.
SelectQuote offered 28.5M shares at $20 a pop, pulling in $570M and growing its overall market cap to $4.4B. Early investors were rewarded as the stock price opened at $26.20 and closed at an even $27.00.
The insurance company will use $150M as a prepayment for a term loan maturing in November 2024 and $100M to pay down its $411M in outstanding debt. Welcome to the club.
Amazon is moving its “Prime Day”, which ironically is a two-day sales event, back to September. The event is usually held in July but with increased costs stemming from the ‘rona, Bezos’ crew is hoping to get back to “pre-pandemic” operating conditions before holding the promotion.
The delay also allows Amazon to stock its warehouses with more goods. And there’s the real reason…
For most of April and May, the world’s biggest e-commerce company was focusing on essential items only. Those restrictions have since been lifted, and soon the company will get back to paying its employees the low-wages that have made it profitable. Then, finally, it can have a sale.
☑️ You’re canceled.
If you’re not going to watch, you can just leave. Netflix is asking customers who have not watched anything on its streaming service in more than a year to kindly get their sh*t and go. No, really. The Trojan Horse of horny folks everywhere is emailing its users to check if they want to keep their memberships active, or stop paying.
A Netflix spokesperson said the number of inactive accounts is only a few hundred thousand, which is less than half-a-percent of its 182M member base. Still, $12.99/month adds up. Just ask your grandma that forgot she subscribed in 2012.
The company is apparently making this decision to save money for customers who aren’t using the service… but I call bullsh*t. “Public corporation turns down free money?” Not a chance.