Welcome to this weekly recap from Insider’s Business Associate Editor Matt Turner. Subscribe here to receive this newsletter in your inbox every Sunday.
What we are discussing today:
What’s hot this morning:
Amazon’s goal is to get rid of a certain percentage of its employees each year – and three managers told insiders they felt so much pressure to hit the target They hired people just to fire them::
“We could hire people we know we’ll fire just to protect the rest of the team,” said one manager.
The practice is informally known as “Hire to Fire”, where managers hire internally or externally employees who are expected to be laid off within a year in order to meet their annual revenue target known as “Unregretted Attrition” (URA). A manager’s URA goal is the percentage of employees who, in one way or another, the company would not regret having seen vacation.
The existence of the practice in at least some parts of the company shows how Amazon’s system of requiring managers to meet a target attrition goal each year can encourage controversial norms and practices.
Get the full overview:
James Charles’ former producer and creative director, Kelly Rocklein, talks about it her lawsuit against himAlleging wrongful dismissal, disability discrimination, failure to find reasonable accommodation, and failure to pay the minimum wage for overtime:
According to Rocklein and her complaint, not only did Rocklein work more than 80 hours a week with no overtime pay, but he also said Charles was “incredibly unprofessional.”
“Imagine having to go over and essentially get James out of bed, tell him to brush his teeth and tell him, ‘OK, what would you like to eat? OK, someone is coming to do your laundry. OK, I’m I guess we’ll get your laundry. OK, it’s time to start shooting – you don’t want to film – well, we both know you have to. So let’s think about it, ” said Rocklein.
She also said Charles ran around the house naked in front of her, called Rocklein names like “slut” and once texted her: “Kelly, I might need your help shaving my bum” to get an insightful one Prepare Coachella outfit. Rocklein said Charles made her feel “extremely uncomfortable”.
Check out everything that led to the lawsuit:
After an intense internal debate about questions about the race, Shopify CEO Tobi Lütke sent an email to the managers Outline the core beliefs of the company. In it he made it clear what the company is not – it is not a government, he said, and it “cannot solve every social problem”:
In the email, he said that “endless slack trolling, victimism, division between us and them, and zero-sum thinking” are “a threat” that breaks teams. He encouraged managers to continue to focus on Shopify’s mission to empower online commerce and entrepreneurship.
A Shopify spokesperson told Insider that the company hadn’t tried to mimic Basecamp in handling political issues and that it welcomed the current events discussion.
“As Shopify grows rapidly and new team members join every day, our leadership team often sends company-wide messages to remind the organization of our vision of just entrepreneurship and to revive our spirit of positive collaboration,” said the spokesman. “This reinforces our need to work together to create a future that connects, not divides.”
Read the full email here:
More than 20 above
at Wells Fargo left last year Four of the bank’s elite presidential club members left since December. Five current and former mortgage bankers described a culture of strong oversight and clunky technology that limited their ability to do business:
Tom Goyda, a Wells Fargo spokesman, said the exits were due to the competitiveness of the mortgage talent market.
“We were in a very competitive mortgage market and first class loan offers are in great demand across the industry,” said Goyda. “Wells Fargo has hired top producers from other lenders, and some of our mortgage advisors have moved to other firms.”
However, the mortgage lenders speaking to Insider pointed to excessive red tape, clunky legacy technology, and the asset cap imposed by the Federal Reserve as factors slowing credit growth and leading to resignation.
More about the departures of the mortgage bankers:
Jeremy Grantham made cautious calls regarding the bubble fractures in 2000 and 2008, saying the current market was it eerily reminiscent of the dot-com bubble. It describes four indicators that could represent “the greatest loss in perceived value from assets that we have ever seen”:
When Jeremy Grantham stated in January that “the long, long bull market has finally matured into a full-fledged epic bubble since 2009,” he said he knew there would be “a significant increase in insane behavior” before it all collapsed.
Boston co-founder Grantham, Mayo, van Otterloo & Co. is known for deliberately speaking about the bursting of the Japanese asset price bubble of 1989, the technology bubble of 2000, and the housing bubble of 2008.
“The thing about a bubble is when you get more money and more crazy investors, it can go on,” he said.
Here is Grantham’s full market outlook:
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Finally, here are some headlines you may have missed last week.