#42floors

♥ Jason taking ownership and being so transparent. Using “obligation” is very telling sign of the type of leader Jason is. Role model +1. Extending healthcare for laid off workers +10.

In the course of running a startup, we do lots of experiments. Some succeed and some fail. But it’s different when these failures cost people their jobs. These last few months have been incredibly painful for me, but at least I didn’t have to worry about how to pay the rent. They did worry about rent. I fucked up and my employees paid for it.

Of everything that’s been hard about running 42Floors, laying off people has been the worst. It almost feels worse than if the entire company had failed.

I’ve been hesitant to write this post because I worried people wouldn’t want to hear from a company that just went through layoffs. But, I hope someone will get value from hearing what we went through. I had never been through layoffs so I didn’t know what to expect.

I want to focus on the obligations that quickly emerged once we decided to shut down this part of our business.

Obligation #1: Take care of the former employees

On March 2nd, we did the layoffs.

This was the type of layoff where none of them were at fault. They did their jobs, but our strategy of being a brokerage instead of a real estate search engine was simply flawed.  This was my fuck up. So without too much prelude, I apologized for the pain and hardship I knew this would cause.

I cried and many of them cried. It was emotional for everyone. Some were angry and some were already focused on what to do next.

We had the paperwork and severance packages ready to go. We extended everyone’s health care for 3 months so they wouldn’t have to pay for COBRA right away. We stuck around for one-on-ones to either be a sounding board if people were mad or to start brainstorming next steps and offer introductions.

It was awkward and shitty for everyone involved.  The only thing I know with certainty is that keeping everyone employed under a failed business strategy would have been worse.

A few of our people went on to start new companies. A few ended up at some of our close friends’ companies. A few joined competitors, and we supported them all the same.

I’m especially thankful of the work Alison and Justin did as reverse recruiters. They basically made it their full time job to do everything possible to help the people we let go find new jobs. Even still, I know it was really hard on everyone, and no one came out unscathed.

Obligation #2: Take Care of the Remaining Employees.

read Jason’s post for the details

Obligation #3: Take Care of My Family and Myself

Once a week Rip van Wafels invites an inspirational member from our local community to share their story with us. They talk, we listen, we ask lots of questions - and we all enjoy great coffee & a delicious wafel together. These sessions provide us with valuable insights into how successful people take mindful breaks every day to better function at their jobs, and at life as a whole.

A firm believer in ‘switching off’, Bernard is currently following B.K.S. Iyengar’s guide book ‘Light on Yoga’. He baths twice a day and lies in savasana afterwards for a few minutes quietly on the floor.  

Bernard’s Story:

Bernard’s is definitely one of the less-conventional stories of someone who ended up working in the tech industry in San Francisco. Which makes it a lot more interesting.

Bernard decided to try his hand at online gambling when he found out a fellow student at his school (Texas School of Maths & Science) had won $200k. This marked the start of a rather interesting & lengthy relationship with online gambling that led to him purchasing a restaurant (Dickies BBQ Pit) with his winnings after College. He had no idea how to manage a restaurant, and ran it into the ground a year later. After losing 20k in gambling in one month, Bernard decided to acquire a new skill and taught himself how to code.