The story of Basecamp’s disastrous policy

In a new blog post, Basecamp CEO Jason Fried apologized after the “policy changes” he announced last week ultimately led to a third of the company’s workforce opting to leave.

“Last week was terrible. We started with policy changes that felt simple, reasonable, and principled, and it blew things up culturally in ways we never anticipated,” Fried wrote. “David and I completely own the consequences, and we’re sorry. We have a lot to learn and reflect on, and we will.”

At 8AM PT on Friday, a bleary-eyed Basecamp CEO Jason Fried gathered his remote workforce together on Zoom to apologize. Four days earlier, he had thrown the company into turmoil by announcing that “societal and political discussions” would no longer be allowed on the company’s internal chat forums. In his blog post, Fried said the decision stemmed from the fact that “today’s social and political waters are especially choppy,” and that internal discussions of those issues was “not healthy” and “hasn’t served us well.” The public reaction had been furious, and Fried said he was sorry for the way the new policies had been rolled out — but not for the policies themselves. 

Behind the scenes, Fried had been dealing with an employee reckoning over a long-standing company practice of maintaining a list of “funny” customer names, some of which were of Asian and African origin. The internal discussion over that list had been oriented primarily around making Basecamp feel more inclusive to its employees and customers. But Fried and his co-founder, David Heinemeier Hansson, had been taken aback by an employee post which argued that mocking customer names laid the foundation for racially-motivated violence, and closed the thread. They also disbanded an internal committee of employees who had volunteered to work on issues related to diversity, equity, and inclusion.  

After a controversial blog post in which CEO Jason Fried outlined Basecamp’s new philosophy that prohibited, among other things, “societal and political discussions” on internal forums, company co-founder David Heinemeier Hansson said the company would offer generous severance packages to anyone who disagreed with the new stance. On Friday, it appears a large number of Basecamp employees are taking Hansson up on his offer: according to The Verge contributing editor Casey Newton’s sources, roughly a third of the company’s 57 employees accepted buyouts today. As of Friday afternoon, 18 people had tweeted they were planning to leave.

Not long after Fried’s Monday blog post went public — and was revised several times amid public backlash online — Hansson outlined the terms of the new severance offer in a separate Wednesday blog post.