

Amazon.com: as frugal as ever? - cwan
http://www.techflash.com/Amazoncom_as_frugal_as_ever50259767.html

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ATB
I worked at Amazon until very recently. Some thoughts on the article:

"Amazon — where workers famously had desks made of wooden doors nailed to two-
by-fours in the company’s earlier, money-losing days — remans in some ways as
cheap as ever"

Everywhere I went, Amazon still used 'door desks' which are basically doors
with legs. They are sturdy, come in various sizes, and are assembled and
disassembled easily. There's an award named after them (the "Door Desk Award")
that Amazon hands out fairly often, and there's a competition to see how
quickly Amazon people can assemble one of them from parts (Jeff Bezos is
pretty quick, IIRC).

"Amazon’s frugal ways reflect “more their culture than the immediate economic
conditions.”"

Wherever you go, people will casually mention that Amazon "tries to be
frugal." The last time I heard this, it was during an office move where I did
a lot of the moving myself (instead of relying on the facility staff to do it)
after an executive assistant casually mentioned that "we value frugality" so I
figured that staff may be put to better use elsewhere. I've been around VPs
and never got the impression that they felt comfortable splashing out a lot of
cash unless there was a clear need to do so. This culture extends to the very
top.

"the company’s relatively modest record of charitable giving has drawn some
unfavorable reviews"

Amazon became profitable after many unprofitable years not that long ago
(2002). It's probably easier to give a lot to charity if you've been making
billions in profits year after year.

~~~
Kirby
I also used to work at Amazon, and this is all true.

Personally, I like having an ergonomically reasonable desk, and don't miss my
door desk at all.

The downside of frugal is, employees don't feel treated as well. Amazon had
free coffee and water, and that's it. No sodas, no free vending machines, none
of that kind of stuff that are reasonably common in software development
houses. The cafeteria on-site is not any cheaper than eating out (though the
food isn't bad.) The office supplies are always the cheapest possible - use a
bic pen or buy your own if you actually care about your writing utensil.
Company swag, like free T-Shirts, are a rare thing. And the 'employee
discount' is distinctly unimpressive - 10% off for the first $1000 per year,
aka $100.

It's all little things, but it can add up to a feeling of being a cog in an
uncaring machine. It wasn't really related to why I left, but I can't say I
miss being part of the Amazon family. People vary, but for me, I honestly
think things like free vending machines generate more long-term good will than
if they'd paid me ten times that amount in a bonus instead.

~~~
tybris
Personally, I find it silly to get paid in beverages if I could get paid in
cash. Then again, when I was at Amazon I was in downtown Seattle with some of
the greatest lunch bars in the world (read: Tats) and not on top of a suburban
hill.

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gruseom
As a meme for perpetuating culture, turning off vending machine lights is
superb symbolism.

I know a guy who did some consulting for Walmart and visited their HQ. He told
me they had a conference room where, instead of paying for a projector, they
stuck an old CRT monitor on top of a milk crate. Although he didn't get
anywhere near the executive sanctum (perhaps if you get high enough, they
don't practice what they preach), he observed many such cultural indicators in
the middle tier.

~~~
mediaman
I believe Wal-Mart practices their preaching even at the higher levels. For
example, I know a number of management consultants who work for the big brand
name consultancies. They travel each week to work at their client's site, and
usually stay at classy hotels: the Ritz, Four Seasons, etc., and the clients
don't care because they already spend $X million on consultants, so who cares
if they're spending $500 a night per person for hotel costs? Besides, they're
advising the board, or the president and C-suite, so there's no point in
worrying about costs.

But Wal-Mart cared. The consultants had to stay at cheap hotels. (For these
people, that was traumatizing.) Their receipts were reviewed and per diem
spending caps enforced. (Very uncommon. These people like to rack up $1,000
bar tabs and charge it to the client.) Most of the team did not even fly down
there, to save costs. (Seems obvious, but that's not usually done.) That made
them an unpopular client among the jet set, but they sure saved a lot of
money.

~~~
philwelch
I remember watching the documentary. In a lot of companies, the CEO's office
is at the corner of some mid-rise or high-rise office building, overlooking
New York or something. We all know the Sears Tower, and Woolworth had an
innovative skyscraper in their day. Wal-Mart's Bentonville headquarters is a
small, unremarkable office building, and their CEO has a small first floor
office with a view of the parking lot.

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rdvm
Holy hell. How many vending machines do you have to have to save $20K by
turning of the lights?

