Ask HN: Seriously, steelman this please. 7,400 employees at Docusign?
This article did not shock me at all but somehow looking up the numbers on Docusign made me wonder, seriously, and with all due respect: how would you get to 7,400 employees at Docusign? I literally can't do back-of-the-napkin calculations that make it plausible.
https://news.ycombinator.com/item?id=33010050
165 comments
[ 2.3 ms ] story [ 208 ms ] threadSo no, there is absolutely no truth whatsoever to your statement. Of course companies make mistakes and overhire sometimes, just like they make mistakes and underhire sometimes. Nobody can estimate future headcount needs perfectly without a crystal ball.
But the idea that companies are just hiring extra people "because they can" in order to "build empires" and "have reports" is one of the most nonsensical things I've ever heard. And I say this having worked at multiple large companies.
This definitely happens, I'm not saying that is the case here, but to dismiss it outright is pretty nonsensical in my view. Obviously it's not the "company" strategy to hire people and waste money, but company incentives and individual incentives start diverging very quickly in large cash flush companies.
The best thing for the company isn't necessarily the best thing for an individual to get promoted. I have definitely worked on projects that were entirely pointless and only existed to "use up resources" and justify hiring more. Bigger teams require more levels of middle management which results in promotions.
Again, not saying this is the case here.
https://www.linkedin.com/search/results/people/?currentCompa...
'DocuSign' is a company and a product. The scope of the company is much greater than the product. I wouldn't guess less than 3000 for sure.
it's a canned search to people saying they currently work at DocuSign (6300 results iirc)
https://i.postimg.cc/DZKS1vK6/Screenshot-2022-09-28-23-18-57...
"As of January 31, 2022, we had 7,461 employees, of which approximately 67% were in sales, marketing and customer success, 20% in engineering, product development and customer operations and 13% in general and administrative. We had approximately 69% of our employees based in the U.S. and the remainder in international locations."
customer operations is probably the short term customer interactions: support tickets, integration support, help desk, etc.
If I -also- recall, When I did an Auth0 integration (a few years before that) I worked with a similar 'Customer Success' specialist while evaluating for an integration.
I think this is the trade-off that's happening; By putting integration support under a 'marketing' budget rather than a 'support' budget, it allows for a happier adopting customer base.
I must add however; those examples stand out to me not because it was 'sales-y' but because they were extremely memorable times of a vendor team working very hard to lead our teams into a pit of success. The best analogy I can think of is the difference between someone on a call giving a vague phrase you have to search through API docs for, vs a direct link to documentation complete with verbose-yet-sane examples.
"Success" is just a a smarmy word for "sales and support".
Customer operations: ?? No idea never heard the term
1500 developers for a click to sign platform? Competitors have done it with 1% of that or less.
Not quite. 1500 people in "Engineering, product development, and customer success", so not just engineering.
Ratios like this are fairly common.
I think the confusion comes from engineers who look at a SaaS and assume it's mostly engineers like themselves. Engineering is a small portion of the headcount.
A lot of customer-related needs scale with the number of customers. Any company with a huge number of customers is going to have a lot of headcount related to dealing with customers.
How many sales/support reps does your $5/month pay for?
For some, the confusion comes from "wow, that's about half the headcount that Microsoft had when I started in the mid-90s, and MSFT was building, selling, and supporting Windows, Visual Studio, Office,..." Perhaps DocuSign's products are, in fact, about half of Microsoft's big three products, but of what I know of DocuSign it's still a big number to me.
Computer/Online service usage growth: a lot more!
Unless you are Google, which is then again where a lot of people in engineering can get confused as most companies don't hate their users quite as much as Google ;P.
Enterprise software is fundamentally a whole different beast. Customers will write big checks, but they expect a lot of different things in return for that money.
I don't know whether this applies to DocuSign.
Literally the first two pages of content explain, emphasis mine:
> To address this opportunity, our sales and marketing strategy focuses on businesses at all scales, from global enterprise to local very small businesses (“VSBs”). We rely on our direct sales force and partnerships to sell to enterprises and commercial businesses, and our web-based self-service channel to sell to VSBs, which is the most cost-effective way to reach our smallest customers.
> Hundreds of integrations with other mainstream systems where work gets done, such as applications offered by Google, Microsoft, Oracle, Salesforce, SAP, and Workday.
> Globally adopted. Our expertise in electronic signature and other agreement technologies is truly global. This is key, given that different regions have different laws, standards and cultural norms. We assist multiple parties in different jurisdictions to complete agreements and other documents in a legally valid manner
> Vertical offerings. We offer enhanced solutions tailored to particular industries, such as financial services, real estate, life sciences, and government. In some cases, these may be variants of a product like DocuSign eSignature —for example, our additional DocuSign eSignature options for assisting with compliance with U.S. Food and Drug Administration regulations. In other cases, it may be a distinct product for an industry, such as Rooms for Real Estate, which includes task management, templates, and workflow for real estate transactions.
You can see from their expenses that they spend two and a half times as much on sales and marketing than they do on research and development.
It's very easy to imagine how you could need 2,000 engineers to build and support e.g. 500 different integrations and 50 industry-specific solutions, all of which need to be actively maintained for compatibility. And then an even larger salesforce that is selling to companies literally across the globe. Not to mention the lawyers and legal analysts attached to all of those.
Docusign isn't a mere PDF viewer computer program, it's a business that provides ironclad legal services that are vetted by lawyers and guaranteed for your industry's specific legal needs in the countries where you operate.
[1] https://s22.q4cdn.com/408980645/files/doc_financials/2022/ar...
1. Sales -> You can hire a lot of sales people if they're generating enough business to cover their own salaries
2. Customer Support -> Big enterprise contracts generally have support written into them. Thus, for every enterprise customer Docusign may need anywhere from 0.1 -> 3 (or more) FTEs. If you price this right it's always worth it to keep growing the org this way.
Docusign has a lot of opportunities to upsell customers on legal services they provide.
You should also consider the scaling cost of internal support. For every 10 FTEs, add a manager. Also add on HR, accounting, janitorial, etc. Easilly 20% of the company might be these sorts of internal support roles.
It won't be long before GPT-3 or its successors will be putting many people out of a sales or support job.
GPT-3 is great at sounding coherent, but much worse at actually reliably solving problems. I absolutely see GPT-3 like things aiding with sales decks, but... it won't replace the sales person.
There's also a large component of enterprise sales having a "trust" component where you know your counterparts. You're not spending approval-worthy amounts of money after only having talked to a chat bot.
Also, if your competitors are using GPT-3 to solve customer problems, having an actual, intelligent human can be a formidable differentiator in terms of customer experience.
If there's a sales person whose job is to tailor sales decks to use cases, you might replace them.
If a big sale takes a team of people to execute, maybe AI cuts a few of them off. Maybe the client is still talking to a real sales person when they need to, but that sales person is able to multiplex to more clients because the time they need to put into each is reduced.
I think people often miss this aspect of "X technology will make this job obsolete"; it isn't "that occupation no longer exists" as much as "far fewer of that occupation are now necessary to do the work", and that change can have meaningful economic impacts. Farriers, blacksmiths and calligraphers still exist, but their work is no longer core to the function of anyone's economy.
Salespeople says BS to sign you up, only vaguely coherent, backed by some basic database facts about the product/price, so GPT can handle that. Think about Donald Trump: Huge fan base of paying customers, barely distinguishable from a chatbot.
Only a moron would put them in front of a sale.
People who survive for decades of that aren't trivially replaced.
If this tech is going to be so amazing, it'll be better served by being a procurement/buyer system.
"Hey AI, what CRM system should I use [based on all the knowledge you have of my business already]?"
You're not exactly wrong here, but many that's a kinda hilarious example. AI doesn't yet know how to operate in the grey area of not-quite-illegal bribery.
Now increase that complexity by orders of magnitude, since we're talking about the conversational skillset that a successful salesperson would have.
Everything is possible over a long enough timeline, but when AI is advanced enough to function as a successful salesperson, there will be a large number of other jobs that AI will also be "replacing".
In other words, the timeline for what you're predicting is much longer than you think it is.
Those YouTube ads featuring pitchmen/people could be replaced by perpsnalizedt deepfake for race/gender/style that fits the target.
There is zero comparison to this and a facebook ad, or targeted marketing.
Indeed. So many people I knew, thought full self driving, any weather, any road, fully AI, would be here by 2015. Then 20.
I doubt we will have it before 2050.
Engineer - Our company is so good word of mouth should be enough to bring in sales, if we need any more lets look to AI for a solution.
Sales - We bring in the money, all engineers do is cost the company money, we could probably run the app/develop the product on a skeleton crew, can't wait for AI to make those jobs obsolete!
Truth - Both engineers and sales are hugely successful to any companies strategy and AI isn't taking anyone's(engineer or sales) jobs not for a long time :)
Successful businesses must have 3 Successful divisions: good product, good sales and good finance/admin.
(Edit: Yes, I am aware of some high profile failures.)
But anyway, Docusign surely isn't an example of such a company or agency.
Yes, the check by the government is the same.
I agree that it is likely that they outsource like other organizations. I still don’t think it is a good idea.
Point being, it's up to the users to figure out if signatures on a digital platform will be legal or not in their jurisdiction. DocuSign probably has some fine print explicitly stating they're not responsible for improper use.
It wouldn't surprise me if they have legal/expert support for certain cases. The last thing you want is some dumb client losing a case that creates precedent which ruins your business model.
You can buy a turnkey loan solution for example from them.
I have witnessed this in corporate, startup, university, and governmental organizations, so it's not much to do with the task to be done. More people requires more people, until and unless something else requires that there be less people instead.
For Docusign, we have apparently just encountered that "something else".
Those poor workers, I hope they'll be able to find something new and provide for their families.
Hacker news:
Good, that company had too many employees anyway.
\s in case it's not obvious
The other thing is that they do stuff outside of just signing documents. They are a software company. They work in the enterprise space too. That ends up pulling in a ton of people to support those large clients.
Could they cut a lot of folks? Sure. But just about every large company could.
I've never had an office job and so it is like some kind of urban legend for me (Like I grew up in the country so I never knew anyone that actually went to summer camp, so I thought it was a fake thing made up for movies and tv.) Even though I'm nearly 50 I still relate to that tiktok of the woman asking what people do in an office all day https://www.tiktok.com/@mads.ringswaldegan/video/70920553756...
The connotation is the opposite of straw-man, so OP wants people to start from the assumption that it's true they need all those 7,400 employees, and explain why this would be the case. OP is not looking for cynical explanations such as that they only have so many employees due to incompetence.
What a grossly unnecessary word.
From the context, it might also mean "rebut this as strongly as possible", "criticize this" or "defuse this argument".
It's unfamiliar wording to me as well. Does anyone have a rough etymology of "steelman" as a verb?
A strawman is an imaginary opponent who is easy to defeat. Like a scarecrow (a human-like figure stuffed with straw, meant to scare off birds from crops) which would be easy to defeat because it doesn't fight back when attacked.
A strawman argument is a weak argument to justify a position you disagree with; its purpose is rhetorical: It's meant to make your position look strong to onlookers (and perhaps to yourself).
A steelman argument is the strongest possible argument you can come up with to justify a position you disagree with; its meant to help you find the truth by taking seriously the people who disagree with you.
OP is using the word slightly differently than normal, in that the position OP disagrees with here is, "Docusign needs 7,400 employees". A strawman would be, "Docusign needs 7,400 employees because it needs to show the stock market that it's a serious company" -- weak and easy to demonstrate that it's stupid. A steelman would be, "Docusign actually needs that many sales people and customer service reps."