[mberning]

It’s a big assumption that they are turning out top talent. In my experience these type of cuts usually impact a small number of top performers, but most of the people cut would be considered average performers (by definition) and from teams which do not provide an outsized value.

[acdha]

One big exception can be things like R&D or internal support (i.e. toolmakers and mentors) where the work doesn’t have the prospect of becoming cash flow positive in the near term. If your skills don’t transfer well to the core business, it might not matter how strong they are.

For example, Facebook has some great people working on VR. If they get spooked about profitability, someone with a neuroscience Ph.D probably isn’t going to pivot to ad sales.

[mberning]

Thats a very tough call on the part of the business. Another example would be turning out your security or internal audit teams. Sure, it will help the bottom line now, but it may not seem so bright in the near future.

[acdha]

Definitely - and I don’t think it has turned out so well in many cases but I understand why it looks appealing.