Resilience
Last week, my company, DocuSign, had to lay-off 9% of its workforce. A number of my colleagues shared the news of their departure, with gratitude for their time and learning at the company. I was taken by their grace. Those of us still here, extended our support with an email, 1-1 chat, connections, pointers and recommendations etc. in small but meaningful ways. Our work carries on. And I’m confident that with the skills they acquired here with their innate talent, my colleagues will land on their feet soon.?
In these situations, I'm always reminded of this story? I first read the story in a children's book years ago. Stoics have similar ideas on resilience (useful articles here and here). I thought my colleagues showed stoic resilience through a difficult time.?
DocuSign is not unique in this moment. The news of layoffs in the tech industry is getting more frequent. There are at least two underlying forces at work (1). Macroeconomic conditions (2). Pandemic pull-forward of demand (somewhat unique to tech industry)
I’m no economist, but it has been clear to me for a while that central banks want a recession so they can avoid a different disaster of high inflation. Their scheme is working and the world economy is undergoing a slowdown. Second, having pulled forward several years of demand, the tech industry is experiencing a disproportionate share of that slow-down. The industry is preparing for a recession on the horizon. I’m not good at making predictions, especially about the future :-), but I’d say a recession in the US and most of the world is unavoidable at this point & in some ways is already here.?
We are entering a test of resilience for the industry. Many young companies and their leadership are facing this test for the first time.?
Companies that adapt to the new environment of high cost of capital, focus on profitable growth, simplify operations, deliver high quality products/service & CX and retain their best customers & talent will come out healthier. Most SaaS industry leaders are already making the pivot. We can look through this time and look forward to a stronger industry. While the next several quarters may look difficult, the malaise will not last forever.?
This too shall pass.