Linuxgruven Layoffs 95
Several readers submitted this story about layoffs at Linuxgruven. Some of them made allegations that Linuxgruven had bounced their last set of paychecks - we have no confirmation of this. We have previously run a story and a followup about a conflict between Linuxgruven and Sair - looks like that won't be a problem anymore.
Re:What? (Score:2)
Re:FUD. (Score:1)
I promise
Face it: Linux is not a business (Score:1)
Face it, you just can't make money giving stuff away.
{Ed. You bunch of pinko commies just don't get the AMERICAN way of life.}
Paychecks... (Score:1)
Re:$5 fee to link to Linuxgruven article (Score:1)
St. Louis LUG meeting is next Thursday! (Score:1)
I went to the last one and it was run by a guy from Linuxgruven. I don't remember his name, but he seemed like one of the higher-ups... It would be nice if their web page [stllinux.org] had this info on it, but it's so woefully out of date it isn't surprising. I think I'll have to go again to see what kind of spin he puts on this.
Re:This is funny, really.. (Score:3)
On monday morning 15 people are going to show up at the door to my company expecting to be trained. Will there be anyone from Linuxgruven there to explain what's going on to them? Or are we going to have a riot on our hands? Then there are the afternoon and evening classes....
45 people who paid $2500 (or whatever) for training they're not going to get, expecting to work for a company that just let 100 employees go.... This is funny to you?
On top of all that, as I've stated before Linuxgruven has always paid their bills.... until now. They just ordered 100 machines from us for new offices they were planning to open. Thankfully they haven't been picked up yet, however we have to restock those parts to our vendors. If we're lucky we'll get a low 10% restocking fee. That's a large chunk of un-recoverable change for us to swallow.
This is not funny.
Re:Suck it Down! (Score:1)
I'm always amused how the people posting these daily Linux failures have to take some swipe at Microsoft. C'mon kids, the bitterness is a little obvious. I can't wait to see the ire directed at Microsoft by the editors/submitters here when VA Linux becomes a penny stock and they dump Slashdot.
Cheers,
Re:But they are hiring in Houston! (Score:1)
Aaron
Re:St. Louis LUG meeting is next Thursday! (Score:2)
Matthew Porter was the CEO of Linuxgruven until he resigned on Thursday. His volunteer work running the user group began before he was hired at Linuxgruven, and I would expect him to be there continuing in that effort. I don't think the meeting is the proper forum to discuss company matters in depth, but I am expecting my presentation to be on the short side as far as time available to me.
Craig Buchek
Disclaimer: I am a Linuxgruven employee, but I obviously do not speak for them.
Re:Shock! Horror! Well, not really. (Score:1)
Aaron
Re:Check out... (Score:1)
Not to mention the fact that that car is NOT a company car, but belongs to an employee who happened to like the company he worked for.
Re:St. Louis LUG meeting is next Thursday! (Score:1)
But the meeting information that you first mentioned is up-to-date on the front page.
I thought it was fairly clear that I know when the next meeting is. My beef is that the page contains almost no information about who is running the LUG. There is a tiny link stating "Chair: Matthew Porter" (that I missed before, my fault). But nothing else. Not who Matthew Porter is, not who the other officers might be. Not even how to contact the webmaster. Had I been an active member of the LUG I could fill in the gaps and send them on. I guess I should have sought out my local LUG before now, but I'm busy enough running my own business.
In any event, the people running LG have some 'splaining to do. St. Louis is a tiny, close-knit community of ~3 Million people. Word gets around. Business people tend not to do business with folks that have questionable backgrounds. I've been running my own tiny company for about 4 years now and it's clear even to me that the relationships within the StL business community can make or break you. It's probably like that most everywhere, but I've heard from others with businesses elsewhere that StL is especially parochial and close.
Re:But they are hiring in Houston! (Score:1)
They also had an ad in the latest St Louis Business Journal. I don't have it in front of me, so I'm not sure if they were looking for help, but I think they were.
Re:Apologize... (Score:1)
Rumored Layoffs (Score:2)
Re:I think this pretty much proves.... (Score:1)
This pretty much proves very little ... (Score:1)
Follow the money: An operating system might cost $20 or $100 or $1000, but that is nothing compared to the cost for labor to set up a system, maintain it, and do something useful with it. Simple arithmetic conclusively proves that software is a relatively small cost for most businesses - they spend alot more for services, regardless of where the software came from. If businesses do 80% of the services in house, the market for consultants is still larger than the market for boxed software. Consulting is also a business that can be started on a shoe-string and scaled up, but trying to compete in the shrinkwrapped software market takes a big investment. Most businesses are attracted to the open source nature of Linux, its stability and security, not so much the price. The fact that Linux is free is something that appeals more to hobbyists, small business owners, academics, and third-worlders.
GNU/Linux isn't trying to repeal the laws of business; it is a different type of business strategy, where there is cooperation in a limited area (software design/distribution). Outside of that area, the market continues pretty much as usual. Most new businesses go under in the first few years, so the fact that some of the Linux companies are dropping is not a reason to assume that GNU/Linux is not viable.
Re:Rumored Layoffs (Score:1)
Re:$5 fee to link to Linuxgruven article (Score:1)
The web is becoming a messy and messed up place.
Maan
Re:It's all true and worse. (Score:1)
Bravo to someone who came out and said it.
Aaron.
Hey! Spelling! (Score:1)
That's "MCSE". You should know it by now. Or have you already forgotten your A-plus training?
Re:It's all true and worse. (Score:1)
Re:It's all true and worse. (Score:1)
I am going to get the info also.
The cost to file is going to be at least $23.00
Aaron
bounced paychecks = bad (Score:1)
-Moondog
Layoffs (Score:1)
Re:$5 fee to link to Linuxgruven article (Score:1)
The St. Louis Business Journal is and has been a well-respected print publication in St. Louis for years. Just because their web site is moronic (they don't really publish it themselves, Microsoft bCentral [bcentral.com] should really take the blame) doesn't mean you must discredit the entire publication.
I have absolutely nothing to do with the SLBJ, aside from being a resident of St. Louis.
zsazsa (and to think I considered applying at Linuxgruven. I obvously would have refused to take their training course, though..)
Re:St. Louis LUG meeting is next Thursday! (Score:1)
Aparently you did not bother to look at the web site before commenting that it is out of date.
Well, let me see here. Upcoming Events [stllinux.org] lists the next event as October 19, 2000. Meeting Notes [stllinux.org] hasn't been updated since 10/2000 either. News [stllinux.org] has been neglected since 3/2000. Seems pretty lacking to me...
Re:St. Louis LUG meeting is next Thursday! (Score:1)
BTW- You are a LG employee or were a LG employee?
Re:Hey! Spelling! (Score:1)
--
Re:This is funny, really.. (Score:1)
Re:thos muther f***ers! (Score:1)
Re:St. Louis LUG meeting is next Thursday! (Score:2)
We should take this discussion off-line. You can reach my via my URL above, or via my User Info page.
Time to drown my sorrows (Score:1)
I would go drown my sorrows in a few gallons of my favorite brew, not sure I can afford it now that it looks like my future job may be in jeopardy.
I think this pretty much proves.... (Score:1)
Re:What? (Score:1)
None of those ten have the same, or even that similar, an init.d structure. The
It's a real mess.
I run NetBSD on four different processors on my (experimental, mind you) network at home. Same binaries, and I can almost clone the config files across the different archs.
Seriously (Score:1)
"That's because, you're an idiot." -Elaine Benis
Re:FUD. (Score:1)
As for the training materials. I may as well believe you. Hell I believed everyone else. I am not sure how I got the idea that the training material were the CEO's idea. I'm sorry I did not give the credit where it is due. How ever the out come is the same for me. I'm done. I'm hoping for maybe one call from linuxgruven. But no matter I'm out. Craig I have a lot of respect for you. Good Luck.
Darn (Score:1)
Only 6 eployees left? (Score:2)
Clayton-based Linuxgruven.com laid off 100 employees today, sources tell the St. Louis Business Journal. The company, a Linux training and service company, reportedly had 106 employees as of January.
Is this a typo, or are they really left with 6 employees?
I'm all for small working groups, but this might be a bit of an overkill.
----------
But they're making a profit! (Score:2)
And the company is making a profit. "We are in the black -- an amazing concept, isn't it, among these startup tech companies?" (Linuxgruven website [linuxgruven.com])
Must have been a rough February...
*scoove*
Re:Heh... (Score:1)
What? (Score:1)
Oh wait....that's right, they sell support for free software. But I thought only Windows users needed support.
Linuxgruven layoffs (Score:1)
From: Richard Beach
To: employees@linuxgruven.com
Date: 03/11/2001 - 7:43:34 pm
Subject: Status
Dear Linuxgruven Employee,
It is with sincere regret that I write to inform you that due to certain financial exigencies, we must go through a restructuring period. This will entail possible layoffs. We are currently working to complete a round of financing, and hope the financial situation is temporary. Each employee will be notified individually of their employment status, as well as information regarding payroll. We are suspending operations at all of our locations immediately, until all effected employees can be notified.
Your financial position may be that you cannot wait for Linuxgruven's financial status to improve, to that end we have retained an outplacement firm to assist in a job search with another firm. That information will be provided at the time we contact you.
- James
I have the names and contact information of people that were in the calss with me. Most people paid 1/2 tuition ($1500) upfront, coincidentally we received 2 weeks instruction.
The instructor was poor, I doubt he would have been able to get certified for teaching, let alone as an LCA. I had six months experience working on SunOS 6 and was more knowledgable on command syntax than he was. He admitted this was his first teaching experience.
When I would presented the instructors with questions pertaining to the job assignments of people that had previously completed the course and passed the test, the reply was "None". I asked if it was safe to infer that all the Linuxgruven LCA'a working at the Chicago location were SAIR certified and I was told "Yes".
During the interview I inquired about the nature of my work assignment. What type of work assignments would I possibly be assigned to. What work location would I be assigned. The interviewer was unable to answer these questions. He responded that I probably would be presented with a variety of options, "Linuxgruven is growing, signing new contracts, opening more Linux Service/Training centers and expanding operations." He was not aware of actual work conditions and assignments for LCA's.
Anyone interested in a Class Action contact krawdaddy@netzero.net
Re:But they're making a profit! (Score:1)
Toss in a little yellow Journalism, and you send a company reeling like Europe's beef industry.
Slashdot Past Story - January 30 [slashdot.org]
Slashdot Past Slashback - February 5 [slashdot.org]
This is funny, really.. (Score:3)
Why don't we make a distinction, on Slashdot. We will refer to EVERY commercial linux company / distro as "Linux-dot-com" and every non-commercial distro or organization will simply be "Linux" or "Linux oriented."
This makes a lot more sense. With the rate at which all of these "revolutionary" Linux capitalists are going under, no one is going to want to invest in linux, and in turn, linux will not do well on the market place.
Linux [corporations] resembles dot-coms in every way, shape, and form. They have no plan, they pick up a copy of linux from kernel.org, get a post on slashdot about an IPO (which needs to stop, btw) and two weeks later, are on Yahoo about a Chapter 11. Ohh, this really looks great for Linux / Unix as a whole.
Let's vote JonKatz off Slashdot island.
Does this mean they are out of business? (Score:1)
Does anyone think that had 106 employees spread out over 7 cities still plans to be in business after firing over 90 per cent of their work force?
Re:Layoffs (Score:1)
LG Layoffs (Score:1)
Re:Hey! Spelling! (Score:1)
Re:Hey! Spelling! (Score:1)
Save that one for later, though, that's funny!
Re:solid answers (Score:1)
Re:What? (Score:2)
You can always get an MCSE (Score:1)
hehe, and to help train for that MCSE, get the MCSE Trainer [freshmeat.net]
Oddly enough though, on Linuxgruven [linuxgruven.com] it talks about how the market has been so bad for technology companies, but not them!
Re:FUD. (Score:1)
Aaron
Re:St. Louis LUG meeting is next Thursday! (Score:2)
But the meeting information that you first mentioned is up-to-date on the front page.
Re:St. Louis LUG meeting is next Thursday! (Score:1)
Craig
Re:This is funny, really.. (Score:1)
Re:But they are hiring in Houston! (Score:1)
Linux distros (Score:2)
Count 'em up. I think I got about 196 listed at LWN's distro page [lwn.net] a month or two back. But, as you point out, there's a handful of major ones (Debian, Red Hat, Caldera, SuSE, Mandrake, Turbo), a few HW-specific ones (Yellow Dog, ARM), and a whole slew of special-purpose ones, as well as smaller dists.
I tend to think of these as tailored applications of Linux rather than fragmentation of the core distro.
What part of "Gestalt" don't you understand?
Re:FUD. (Score:1)
Aaron
Re:But they're making a profit! (Score:1)
Business Dictionary for CS Graduates
profit: having cash in your hand that can be used to buy cool tech toys.
press release: an exciting fable that tells of a ficticious business with the same name as yours that's having outstanding success. Can be sent to a newswire, which is a press release receiving machine that sends more profit to your bank account, usually within a few hours. See dot-com ATM machine for further definition.
bankrupcy: 1. the condition of not having profit; 2. what your attorneys make you file for after you haven't paid employees for three months, have pilfered all the equipment and moved the customer accounts to your new business.
LCA's please read. (Score:2)
This is not a joke. But I make no promises. I'm still looking for a job and I'm not wanting to be a opertunist. I have not heard from anyone like IBM. So far these are just e-mails with persons that say VC is easy for a consulting company.
They way I see it their are customers for linux solutions and at least a hundred Linux Admin's that can start on monday for someone that can come up with the VC. Before we are forced to work Microsoft to eat.
Too bad there is no way to put this on ebay.
SOLARIS RULEZ (Score:1)
Re:FUD. (Score:1)
One. I'm not joining the former CEO's new company.
Two. Have you done the numbers? if you have 100 people paying 3150 dollars in one month but you only hire 1 out of every 20 then you should not have to depend on a VC check the day of payrole.
Three. The CEO started the new training docs and was the one that said they would be opensource.
(which could have something to do with Sair getting pissed but I don't know).
Four. The CEO was busting his ass trying to find placement for LCA's.
Five. The CEO was trying to change the way Linuxgruven did bussiness. When he couldn't he quit.
I can tell where your coming from my friend but don't call me the tune. I will not walk away.
Re:Heh... (Score:1)
No Customer Service Center (Score:2)
I'm guessing if you're using 'em, your SOL.
It's a shame that, if a company is going to fail, they don't do it gracefully.... you'd think that was the LEAST they could do, esp. if they were mis-managed... but, I guess if they were mis-managed, the wouldn't terminate gracefully...
Re:Heh... (Score:2)
Re:$5 fee to link to Linuxgruven article (Score:1)
Re:This is funny, really.. (Score:1)
What I want to know is how St. Louis could have the demand for _200_ new system administrators _every_ month. I guess that a whole bunch of mid-westerly IT companies thought that it could be interesting to use Linux for some parts of their IT subsystem (mail gateway, firewall, print servers, web proxy, web server even) and got themselves a Linux admin. And then that was saturation, noone else to train, no market, no economic want to satisfy. ooops, 100 jobs down the drain. I bet you their expansion plans were non-existant.
We don't need plans - we're a fast moving IT company!
Pop!
FatPhil
--
Let's see if the employees have anything to say (Score:1)
Rip Work! [ripwork.com]
Re:Rumored Layoffs (Score:1)
Here's a fact for you -I- have no idea what I'm supposed to be doing today, neither Lebb nor Hibbits has contacted me to let me know, as it said they would in the internal email to all employees( Which as a side note came out Sunday ).
Though my last check hasn't bounced( yet, to my understanding it still can ), I'm still waiting for some sort of communication verifying anything from those two. So you keep right on going to work there friend, we'll see if your tune changes on Friday when your supposed to get your paycheck.
Spread thin (Score:2)
Re:Darn (Score:1)
Re:Suck it Down! (Score:1)
Re:thos muther f***ers! (Score:1)
I'm not really suprised though, because some of our "recruiters" were about as honest as used-car salesmen.
Re:It's all true and worse. (Score:1)
$17.00 to fill
and $6.00 to deliever.
Aaron
We're looking for 2 Unix Engineers in St. Louis (Score:1)
I'm sorry to hear of the layoffs at Linuxgruven. However, our non-dotcom St. Louis based company is growing our Unix environment and we need some help.
My group has just gotten approval to hire a couple of Unix/AIX sysadmins, and I am looking for people with solid Unix skills. (If you're good, we can train you in whatever technology you need to know).
We're part of a large company, and I am introducing lots of Opensource technologies into our architecture. My personal interests lie in Unix security (SSH/Kerberos/LDAP), but we also have Oracle, WebSphere, Java, MQ and clustered systems. If I had the time, I'd also like to roll out PHP and Jabber internally.
Please send me email to steve at borrelli.org and I will see if we can set up an interview.
Re:Spread thin (Score:1)
FUD. (Score:1)
There are 2 issues involved, only one of which has been mentioned here. First, there is the issue of the company running out of money. That seems to be true, but they had just secured Venture Capital on monday.
The second issue is the fact that *all* the executives resigned on thursday. Apparently, they took the VC money with them. That's why the employees aren't getting paid. That is also why the owners sent everyone home on friday. They have no management team and possbily no money. That makes it hard to run a company.
The article at the St. Louis Business Journal is quite suspicious. Many of the obvious facts are wrong. It is common knowledge that the company is in 8 cities, not 7. And it is obvious that if you lay off everyone but 6 people, but have 7 cities, that lay-offs had to have taken place in other cities. I suspect that the "sources" are the former Linuxgruven management trying to spread a little FUD.
Re:What? (Score:1)
Shock! Horror! Well, not really. (Score:1)
I doubt anyone who was here when during that last mess with Linuxgruven on Slashdot is surprised by this. Honestly, posting fake testimonials about their company is not the sign of a thriving business.
I doubt that lawsuit is going to get anywhere, it sounds like they're tapped out of cash.
Later,
ErikZ
Re:This is funny, really.. (Score:1)
Re:This is funny, really.. (Score:2)
Ok, so if I lie to you and promise you wonderful things and don't deliver it's your fault, right?
Give me all the money you have in all your bank accounts and I promise I'll triple it in a month and give it back.
As I'm sure you're aware, Redhat != Linux, and kernel.org doesn't care, nor do they have the procedures in place to check, what happens to the Linux kernel source after they release it.
Those people you refer to are real people. People with children, bills and a willingness to hope for a better future. They were offered an opportunity to have a decent paying job if they passed some tests. They are not at fault. Not anymore than senior citizens who were fucked by Publishers Clearing House or Readers Digest.
I used to be arrogant, thinking I was smarter than everyone around me, thinking I was justified in feeling superior because I was demonstratably superior. Reality check: I still had to deal with everyone I had previously dismissed as inferior. I came to grips to the fact that everyone has different strengths.
You, my friend, are displaying arrogance in that you seem to think that these people are at fault because they believe what they were told and they shouldn't have. If that's the case then we should all build ourselves shelters, stock them with Twinkies (ptang, frink frink!) and shoot anyone outside our circles as they approach.
Ultimately, I must disagree. These people are not at fault. These people were promised things that were not delivered. Though some prudence is warrented and, no, people shouldn't jump into things without some investigation, you can't hold them accountable when some company promises something and then bails.
Don't be an oppositionist. I implore you. Have a heart.
Re:Hey! Spelling! (Score:2)
Minesweeper Consultant & Solitaire Expert.
Switch-off engineers (Score:2)
I just press the reset button...
Re:FUD. (Score:2)
I was hired by the owner to create those new training docs long before Matthew Porter was made CEO. I had found a page where James Hibbits had announced that they were going to be open-sourced, but I can't find it at the moment. I believe that was before Matthew Porter or I even worked for the company.
I will attempt to run the numbers for our viewers. 200 students (a high estimate) times $2500 (the new price) = $500,000 revenue a month (maximum). 106 employees times $4500 a month (a low estimate of $54K a year -- higher than the advertised $45K, but some people obviously make more than that, and you have to figure in insurance and employers' portion of taxes) = $477,000 labor (minimum). That leaves $23,000 (maximum) a month for rent on (by my count) 20 offices. I can gurantee you that rent averages more than $1000 a month. Did you want electricity with that? How about computers?
Now re-do the math with 80 employees. That saves you $117,000 a month, giving you a much better chance of being back in the black.
So at a minimum, you need to have 2 students in class for every person you hire (2*$2500 > $4500). From the numbers I have seen, there were about 106 employees and between 150 and 200 students. That doesn't cut it. And correct me if I'm wrong, but if you keep each employee for 12 months, you'd only be able to hire 1 out of 24 students or else the numbers start going exponential. (Or am I just tired?)
Disclaimer: All numbers are available in the public record. I do/did work for Linuxgruven, but this math was not sanctioned by them.
Re:But they are hiring in Houston! (Score:1)
OK, this is getting out of hand. Linus has barely had 9 years of Linux experience.
I would hope that anyone with over 5 years of actual IT experience, much less actual Linux experience would be able to find a job for better than $45K.
Re:It's all true and worse. (Score:1)
Re:Linuxgruven layoffs (Score:1)
$5 fee to link to Linuxgruven article (Score:3)
The "St. Louis Business Journal" Article that Slashdot points to has a link [icopyright.com] at the botton labelled "Click for permission to reprint", and the page that it takes you to claims to be able to charge $5 for the right to link, as if copyright could restrict that. As I see it, this makes the "St. Louis Business Journal" a scam intended to take advantage of people who don't understand copyright and fair use, and, therefore, not a trustable source of news.
It's only social pressure, but I would like to recommend that slashdot label unconfirmed "St. Louis Business Journal" stories as rumour, since their misleading statements about copyright show that publication by the "St. Louis Business Journal" does not make it particularly likely that a statement is true. Also, keeping the "St. Louis Business Journal" in quotation marks helps make it clear that that site is not acknowledged as the journal of record for business in St. Louis.
Re:Suck it Down! (Score:1)
Re:But they're making a profit! (Score:1)
It's all true and worse. (Score:5)
Yes it's a scam. The fact is that they count on people not passing the LCA. They do this by promising people that have no chance of becoming a Linux admin. Most of the time these are people that can't even use windows computers.
The owners ( James and Mike ) write checks out of the company's bank account. The reason everyone is fired is because the owners took a vacation and spent their paycheck.
Right before this happened everyone at linuxgruven was forced to sign a non-discloser agreement so that people would be afraid to speak out about what was about to happen. ( LG can fook off because I did not sign S#1t.
Everyone that was above me knew how the bussiness worked and chose to ignore it because they were getting great titles and pay.
I found out a month ago and started looking into the training materials. The instructors were top notch but the materials were so bad that I would not suggest them to be used as heating fuel. I see no possible way for people to study anything from the training materials.
In the beginning it looked like a real company. I was seperated from the rest of the company and told that support contracts for services were piling up. It was not till I went to the call center and saw everyone fooking around that I supected that it was the training classes that were the only form of income. Other then me. I was billed out for 170+ hour and got screwed out of my bonus for those jobs. Which by the way my bonuses were supposed to be in this coming fridays check.
I strongly suggest that people stay away from linuxgruven. I have been told personally by the owners that they will continue the training classes and look to other citys to make up for St.Louis.
Don't feel sorry for me. feel sorry for all the guys that thought they were getting a break. A chance to work with linux and get a real good pay concidering how much they knew. Instead these guys got screwed out of pay and the bills are coming fast for them.
The fact is that there was only one real admin job that linuxgruven had, and only one person did that job. The rest were sitting around waiting for people that wanted interviews.
This is a company to stay away from... If anyone wants to contact me they can do so though my home page www.mercybeat.com ( i'm mercybeat ).
There was some good work going on at Linuxgruven... there was a team that was working on creating real training materials that were to be released opensource.
My last advice to linuxgruven employees. Go to the courts and file a personal small claim against the company. If your in st.louis contact me and i'll tell you all about it. Or you can meet me in clayton monday morning and file with me.
I would still like to work for a linux professional services company if anyone has a job for a java programmer with 5 years or real linux experiance.
Damon C. Richardson
mercybeat@earthlink.net
P.S. Once again I have signed nothing at linuxgruven and I can say what ever i want to who ever I want.
Re:Organize, my fellow 'suckers' (Score:1)
Linuxgruven
7711 Bon Homme Suite 450
Clayton, MO 63105
314-727-0918
Principals:
Mike Lebb 314-922-7725
James Hibbits 314 -922-7717
Karlton Holmstrom 314-922-7787
Jack Estes
Ken Silver - Philly Based
Matt Porter
New company EOSS - St Louis based