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Employee buy-outs

Why are IT companies usually so destructive when they are implementing the shrinking of the operation during hard times? I am shocked that they can't be bothered to offer employee buy-outs in general. If you are in debt, and could sell the company for a song, why not leave it to the employees to run it? If they own it they'll want to make it float and if they are competent technologists they will be in a good position (they know the product) to turn the company around. It's got to be better than running around out on the street looking for the next sting. What's preventing employee buy-outs? Lack of interest? Unrealistically expensive intellectual properties? Just my 2 cents. What do you think?

Li-fan Chen
Wednesday, July 16, 2003

I think the unreasonable expectations of the value of IP is a major part of it.  But unless the marketing people are organised and switched on I can't actually imagine many developer groups liking the concept of employee buy outs.

After all many of those that would be involved probably also think they could do it without the bother of picking up the liablities of the previous company.  Its all in their heads after all.

Simon Lucy
Wednesday, July 16, 2003

>> I am shocked that they can't be bothered to offer employee buy-outs  in general <<

Interesting, how is a employee buyout going to happen.
Chances are, that the shop (any place) has been run down due to incompetent management.

Now what are the IT workers supposed to do?
Throw out the old management; where do they get a new establishment ?
one scenario would be to chose a new leadership from the ranks; now chances are that the old startup like bickering starts again. Anybody wants to be the CEO/CTO/CFO ?

Competent management - if you have it then the shop will not run into problems; if there isn't, well, whatcha gonna do about it?

Management seems to be less of a dominant problem with ordinary production - thats where they did employee buy outs.

Michael Moser
Thursday, July 17, 2003

What is this? Communism? If your management has run the company into the ground and you think you can do better, pick the best folks out of the ruins of the company and start your own.

pdq
Thursday, July 17, 2003

>> If your management has run the company into the ground and you think you can do better, pick the best folks out of the ruins of the company and start your own.  <<

Problems when a company has something to do other then software (hardware costs much); problems with IP; setting up marketing. etc.

>> What is this? Communism?  <<

Communism sux, as has been proved;

Capitalism sux too -

It has scalability problems (doesn't scale to planetary scale - see well, any place other then Europe and North America)

It has huge installation problems - Max Weber argues that you need a Protestant work ethics to set it up.

Problem is that nobody is since previous projects screwed up, nobody is ready to think about alternative systems.

(sort of like operating system research ;-)

Michael Moser
Friday, July 18, 2003

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