[FredPret]

Here’s another thought: Decreasing communication costs decreases the optimal organization size.

In the days of horse-delivered mail, you wanted all your employees in one big building, and you wanted to cover all the functions inside your own org so you don’t have to send many slow, expensive letters.

Fast forward to email and zoom and automated SaaS businesses - there is very little friction in engaging a third party to do the things you don’t specialize in. You don’t need any employees beyond your core team anymore.