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by apparent 19 days ago
> cut costs, jack up prices, and milk remaining users for as much cash as possible for as long as possible.

Don't forget "slash the workforce, ensuring that the product will get worse over time".

2 comments

> Don't forget "slash the workforce, ensuring that the product will get worse over time"

Not commenting on Bending Spoons. But in general, a company built to grow is overprovisioned for one being put into maintenance mode. If you're growing, sure, let the designers change the UI every release. If you're trying not to lose customers, don't do that. Which means you don't need a crack team of in-house designers.

I agree that a company in growth mode needs more employees than one in maintenance mode. But wouldn't the owners already have cut unnecessary employees before selling out to PE or similar?
> wouldn't the owners already have cut unnecessary employees before selling out to PE or similar?

Usually not. It's emotionally difficult. And knowing what you need and don't need to cut (versus transition or aggregate with your conglomerate's administrative layer) is its own expertise. If you had that, you wouldn't need Bending Spoons or whomever.

That’s what “cut costs” means for SaaS, firing people.
Yes, it is part of cutting costs, but there are other ways to cut costs ("synergies" from merging back office functions) that don't necessarily affect the product.