If they were paying each employee 10x as much, and that got locked in, and then they didn't have the money to pay them, there would be bad consequences. But that's not what's going on here.
If they were paying each employee 10x as much, and that got locked in, and then they didn't have the money to pay them, there would be bad consequences. But that's not what's going on here.
> If they were paying each employee 10x as much
They're presumably paying the market rate either way. The issue is, what happens if they need to reduce the number of employees? Or they have too many front end developers and not enough back end administrators or vice versa, and then need to let some people go and hire others with a different skill set?
And if there's any meaningful shortfall it's literally impossible to get there with infrastructure cuts. Nobody sane would try it, since the target would be negative one thousand percent costs.
> And if there's any meaningful shortfall it's literally impossible to get there with infrastructure cuts. Nobody sane would try it, since the target would be negative one thousand percent costs.
You can't make up a $35M shortfall exclusively from cutting infrastructure when you're only spending $3.5M on infrastructure, but you also can't make up a $35M shortfall by not cutting anything. And you can make up some of it from cutting infrastructure, so where does the money come from that didn't come from reducing headcount?