The engineers are human. I'm sure they're as horrified as you suggest.
Companies are not human, certainly not by default. The vector sum of the effort of many humans is inhuman by default. [1] (Phrases like "mob mentality", "team spirit", and "groupthink" didn't get invented for nothing.) It takes hard work to give a company a human face -- hard work by management, by PR, by customer support, by HR. Some companies are much better at such work than others.
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[1] This is, of course, a perennial topic here on HN: It's easier to run a human company when the company has fewer people. That's one of a startup's advantages.
Of course, a company that is too small runs the risk of being too human: Humans, for example, are prone to emotional roller-coastering, can become fixated on the trees instead of seeing the forest, and need at least some sleep every day. A team's inherent "inhumanity" can help smooth out misfeatures like this.
'Similar to Facebook being willing to "piss its users off" when it feels the need to make a big change in its service for the long-term good, I see Buzz in Gmail as a relative big change that requires more than one day to adjust to. We've all been on the side of changes in services that we didn't like and either got used to or actually loved in the long run. We think Buzz is one of them. A lot of us here have also been designers on a service that we knew needed to change but was afraid to because of internal momentum or fear of short-term user reactions.'
edit: I think the quote stands on its own. They may be horrified, but the action was rooted in a kind of arrogance we often ascribe to inhuman activity, where the impact on other humans wasn't considered thoughtfully or was deliberately ignored.
Thinking about this, it seems like Google and Yahoo have been really envying what is effectively Facebook's captive audience. With Facebook, you sign up for "social networking" is essentially an undefined product whose provider has undefined obligations to you.
Email involves some explicitly or implicitly understood bounds and so doesn't let the provider sell it users to the same degree - well, unless the email provide just flagrantly violates their implicit obligations - and so the temptation is greater and greater.
Companies are not human, certainly not by default. The vector sum of the effort of many humans is inhuman by default. [1] (Phrases like "mob mentality", "team spirit", and "groupthink" didn't get invented for nothing.) It takes hard work to give a company a human face -- hard work by management, by PR, by customer support, by HR. Some companies are much better at such work than others.
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[1] This is, of course, a perennial topic here on HN: It's easier to run a human company when the company has fewer people. That's one of a startup's advantages.
Of course, a company that is too small runs the risk of being too human: Humans, for example, are prone to emotional roller-coastering, can become fixated on the trees instead of seeing the forest, and need at least some sleep every day. A team's inherent "inhumanity" can help smooth out misfeatures like this.