D&D General WotC Founder Peter Adkison On Hasbro's Layoffs

Peter Adkison, who owned Wizards of the Coast until it was sold to Hasbro in 1999, oversaw the relaunch of Dungeons & Dragons with D&D 3rd Edition. Today, he commented on this week's round of Hasbro layoffs, which have ripped through WotC. Adkison left WotC in 2000 and currently runs a production company called Hostile Work Environment.

Like many of you, I'm saddened to learn about the layoffs at Hasbro.

Caveat: I have no idea of what’s happening behind the scenes at WotC. If you’re asking who’s at fault, or to what extent it was or was not justified, that’s outside the scope of my knowledge. This post is about my own reflections.

When I read about the layoffs at Hasbro my immediate feeling was shame. Shame for when I did the same thing, at the same company (WotC, before we sold it to Hasbro).

I have made lots of mistakes, tons of them, more than I can even remember. And while I regret those mistakes, and I’m sad for those hurt, I realize it’s part of learning and it’s part of being human.

But layoffs, when handed poorly, or when they are unnecessary, aren’t just mistakes. They are failings of character. Those times when I had a failure of character, those are the moments that haunt me.

 

[Incenjucar]

How many people accept the offer (or ask for more) compared to how many ask to be paid significantly less? I feel safe in saying it's valid generalization to say the first is a much greater % than the latter. I wouldn't think this is in dispute, but apparently you feel it is.

Nintendo CEOs have taken 50% pay cuts to keep things working. The world is complex.

 

[Sacrosanct]

Nintendo CEOs have taken 50% pay cuts to keep things working. The world is complex.

How often does that happen compared to it not happening? How often do CEO candidates tell the board they refuse the offer and want a lower offer instead? Pointing out a rare exception does not disprove the generalization.

 

[MGibster]

All the studies say that the people left behind have their productivity crater from bad morale and many of them start looking for other jobs.

This is correct. Productivity typically falls as the remaining exployees deal with anxiety issues such as survivor's guilt and wondering how secure their own jobs are.

Shoot, when I was made redundant before Thabksgiving of 2017, I was given like 3 or 4 mo ths severance.

This is probably a good time to remind people that severance is a courtesy and not require by law. And even when severance is paid, it's usaully based on how many years you've been with the company. If you've only been with teh company a year or two, your severance probably isn't all that great.

How often does that happen compared to it not happening? How often do CEO candidates tell the board they refuse the offer and want a lower offer instead? Pointing out a rare exception does not disprove the generalization.

You're right. But sometimes we just like to nitpick these little points for some reason instead of whatever the main topic is.

 

[occam]

Layoffs are usually (though not always) a sign of executive failure: Either the executives hired too many people for the company's operations, or else they are weakening the company's long-term prospects to juice short-term profit margins.

Your use of "usually" calls for evidence. Unexpected things happen (e.g. pandemics occur, supply chains seize up, macroeconomic conditions change), and companies and individuals need to adjust. That's at least as likely an explanation as the ones you presented.

Business leaders aren't (generally) evil supergeniuses, and they aren't (generally) bumbling nincompoops, which are the two categories to which many people seem to assume they belong. They're people, making the best decisions they can according to present circumstances and the information available to them. (Again, generally.) When the circumstances or available data change, sometimes they get caught out and have to choose from a selection of poor options. This shouldn't be a surprise to most adults, who also have to deal with unexpected difficulties arising in their individual lives. For example, getting laid off when you have a mortgage and/or other financial obligations; you wouldn't generally see the need to pull back on spending in such a situation as a sign of individual failure, would you?

 

[Von Ether]

This is probably a good time to remind people that severance is a courtesy and not require by law. And even when severance is paid, it's usaully based on how many years you've been with the company. If you've only been with teh company a year or two, your severance probably isn't all that great.

Or to add to the frustration, how high up that ladder is and how much you play golf with your fellow CEOs. They don't call them golden parachutes for nothing.

I get the feeling once their pet project of pitching "The real money is in D&D Beyond subs! Let's make it a truly walled garden and dump this OGL nonsense," imploded, they just gave up.

 

[Ruin Explorer]

I get the feeling once their pet project of pitching "The real money is in D&D Beyond subs! Let's make it a truly walled garden and dump this OGL nonsense," imploded, they just gave up.

I'm skeptical that those two projects were connected in that way, based on the various leaks during the OGL debacle.

What seems more likely was the much, much larger and thus inherently more powerful 3D VTT team (the leader of whom apparently opposed the purchasing of Beyond) was pushing for the OGL changes to make D&D into a walled garden - or just because they didn't want the brand "sullied" by 3PPs (particularly ones not under their control with financial incentives), with the 3D VTT as the main feature of said garden.

 

[occam]

Layoffs should be seen as the result of poor management. But in today's economy, layoffs are actually considered good management because they increase shareholder wealth.

This mindset is killing multiple industries, but hey, as long as the shareholders walk away happy, it's good ... right?

You're saying that layoffs meant to increase shareholder wealth, apart from any other external financial conditions, are killing multiple industries? What are examples of such industries?

 

[Umbran]

So he isn’t actually paid $9m cash is he? The majority is bonus through stock options which are tied to the success of the company and couldn’t be used to pay for employee salary either way.

It could. Cocks could forego his bonus, the company could sell equivalent stock instead, and use the funds to pay for the employees.

I don't know if that'd be a good plan, but technically it can work.

 

[GreyLord]

Christmas layoffs seem a common thing in the US, I guess it is something to do with the tax year rather than just to be spiteful.

It's a dilemma. Would you rather be laid off before Christmas and at least have an idea that you'll be out of a job after Christmas, or be laid off right after New Years and you've spent all that money on Christmas?

It's hard choices, but what I've heard is most would rather have it prior to Christmas and see it coming than after.

 

[Whizbang Dustyboots]

You're right. But sometimes we just like to nitpick these little points for some reason instead of whatever the main topic is.

It's not nitpicking.

"EVERYONE would do it, these folks' hands are clean, my hands are clean, because YOU WOULD DO IT TOO" is sophistry. Deciding how everyone else would behave to not-so-coincidentally absolve parties of any fault is an argument that deserves to be called out.

And, for the record, "everyone is doing X, so it's no big deal" has been the basis for excusing a lot of evil in the world. It's not worth trotting out.

The "everyone else is doing it" argument didn't fly with our moms when we were little and it doesn't fly as adults now.