Running a company is very hard and all I can say is that I'm trying my best and have always treated people fairly, which is not the same as being nice.
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If your question was, how should they have fired employees then: Had management fire them, give everyone a month severance because getting fired without notice is shitty. Not disguise their firing meeting as an all hands, and not hire contractors to do their dirty work.
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And further, suddenly becoming aware that you're in "existential financial risk" is either indication of extremely bad management or exploitative management. Lots of these people were pouring their hearts into efforts that would ultimately be doomed. This isn't necessary.
End of conversation
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he/him 