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I'm having trouble understanding why 'revenue is not really all that relevant.' If you're burning $40M a year, and you press a button to save $90M a year, yes
by pc86 4y ago
I'm having trouble understanding why 'revenue is not really all that relevant.'
If you're burning $40M a year, and you press a button to save $90M a year, yes your label costs are the same but how are you not now at +$50M a year?
- thehappypm 4y agoPayroll is a cost, so it’s more relevant to think about a layoff in terms of its impact to profit (your example) than revenue. Lots of companies sell at a tight margin, so tiny cost savings as a percent of revenue can be a big difference in profit.