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SBF
@SBF_FTX
Replying to
@SBF_FTX
6) c) Companies lower the bar as they hire more, and over time the average coworker people interact with becomes a worse experience d) Incentives become harder to align as people have less and less of a sense of what each other are doing
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SBF
@SBF_FTX
7) This is, as far as I can tell, the most common reason that successful companies decay. It’s a race–between how quickly new employees understand the company's culture, and how quickly people are hired. The faster you hire, the harder it is to keep everyone on the same page.
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SBF
@SBF_FTX
8) So maybe you can grow by 50% each year and still mentor each new recruit. But if you grow by 300%, each new employee only has 4 months to learn before they have to teach. And meanwhile we have to make sure teams are coordinating and compensation is fair.
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SBF
@SBF_FTX
9) Otherwise--if you're not careful--your company slowly decays into Moloch before your own eyes. (slatestarcodex.com/2014/07/30/med) ---- They broke their backs lifting Moloch to Heaven! Pavements, trees, radios, tons! lifting the city to Heaven which exists and is everywhere about us!
slatestarcodex.com
Meditations On Moloch
I. Allen Ginsberg’s famous poem on Moloch:What sphinx of cement and aluminum bashed open their skulls and ate up their brains and imagination? Moloch! Solitude! Filth! Ugliness! Ashcans and u…
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SBF
@SBF_FTX
10) And so, when we hit around 250 people, we slowed down hiring. Not because of money--we were, and still are, strongly profitable--but because we wanted to make sure we could actually integrate everyone we hired into FTX's working culture.
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SBF
@SBF_FTX
11) We have 10% as many employees as others, but when it comes to output, I would take on any of them. We built FTX, originally, with two developers. Having 25 today allows us to scale. Never underestimate what each developer can get done in the right environment.
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SBF
@SBF_FTX
12) And because we hired carefully, we can keep growing regardless of market conditions. Because we exponentially scaled our revenue and productivity, not our expenses. But more importantly, because each person we add takes on a huge opportunity, and a huge responsibility.
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SBF
@SBF_FTX
13) A lot of reporters have reached out asking if we're going to be scaling back. And our answer is the same as always: We're going to keep pushing forward.
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SBF
@SBF_FTX
14) More will be joining than leaving, though--as always--we'll make sure to add people at a sustainable rate. And, as always, we'll make sure to uphold a high standard.
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SBF
@SBF_FTX
15) The amount each teammate can do is enormous. And while we expect a lot of each other, it's incumbent on us to create an environment where people can thrive.
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SBF
@SBF_FTX
Replying to
@SBF_FTX
17) Which is a lesson that I learned the hard way, when I grew a company from 5 people to 10 to 25 to 10, all in the matter of a few months.
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SBF
@SBF_FTX
18) Anyway, on February 8th, I didn't announce a hiring freeze. And today I'm not lifting a hiring freeze--because there never was one. And because the truth is that, for FTX, things are the same as they always are. We should hire great people, and be great to them.
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