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by renewiltord 1472 days ago
Wait, no, that's not right. Say you have $100 in the bank and you make $100/month and spend $110/month on people and that's the only expenditure.

You're going to survive 10 months.

Suppose you fire 10%, so now you spend $99/month and let's say revenue is linear, so now you make $90/month. You're now going to last 100/9 = 11.11 months and that's more than 10% longer already.

Now if you fire from positions that you got in anticipation of them contributing but they don't then you could even go negative to positive.

So it's not 10% more days even in the worst case where you are running something like a consulting business where revenue is proportional to number of heads and for complex operations it can make you profitable.