Business 101 is that all funded companies aim to lose money in order to grow. As long as the growth rate is sufficiently high to justify the losses, this is con

Business 101 is that all funded companies aim to lose money in order to grow. As long as the growth rate is sufficiently high to justify the losses, this is considered good performance. However, if that ratio goes the wrong way, then companies need to make internal adjustments to bring it back in line. That could be new or different pricing strategies, but it also usually involves some efficiency improvements and cost cutting. This is why you have scenarios like this where the company is yes overall losing money each year (as intended), making more revenue than last year (good), and still cutting jobs (because they are still not at the right ratio of revenue growth to losses). So the executives could be doing a completely fine job bringing the company back to the right path. With only trivial high level information like we have we can't tell. To really know if they are doing well or not you'd need to dive into the finances.