Bad news on the grapevine this week...
A company in LA that I knew of, setup shop around a year and a bit ago, they wanted to build a global low-latency network just for online/esports games studios to use, to reduce lag/etc, setup by some former employees and investors from other parts of the games industry. Fast forward 12 months, through the middle to the end of last year, they went on a hiring spree - hiring/poaching people from all manner of expensive, high-end tech positions. They poached 4x people directly from the team I used to work in, and around 20 people in total. Crazy amounts of money being offered. Some people who'd been hired had been in jobs for 10+ years with established tech companies. It never felt right though, it seemed "too good to be true" and I didn't really understand how they were going to make any money, as I know the networking/internet industry intimately.
I then heard that a whole bunch of people had been fired, however former colleague who works there there told me what happened; Earlier this week - the CEO announced an all-hands meeting with 5 minutes notice, zoom call - everybody logged on. They were told that the company hadn't made any money, they'd built all this stuff - but nobody was buying it and it was sat there derelict. Essentially - they hadn't got through the 'gate' in terms of generating enough revenue to secure the next phase of funding. Basically they were going to "do something else" and the current idea was finished, and it was all being torn down.
The whole company was told, within an hour - you may, or may not be called by HR if you are, you'll be leaving the company.. Within 2 hours around 90 people had been axed, basically 2/3rds of the company gone.
There were people who'd been fired, who'd been hired two days prior to this happening, only last week - my Linkedin feed had someone announcing their new job there, with a picture of their new laptop/goodies on their first day. The CEO/Management must have known things were going south, and they'd made no money.
So yeah... The old sayings really do ring true "if it sounds too good to be true, it probably is..."