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I think that beyond some relatively small number, engineering headcount functions as a demonstration of wealth - it doesn't actually make the product better, it
by jes5199 3y ago
I think that beyond some relatively small number, engineering headcount functions as a demonstration of wealth - it doesn't actually make the product better, it doesn't make you ship faster (Brooks's law). but it makes you look big and important and justifies your market cap
- disgruntledphd2 3y agoSales scales as O(N), eng/product should scale at sqrt or log. Ideally, obviously.
- elicksaur 3y agoI want to like this theory, and it seems like there is some social clout aspect to the phenomenon. But, the bump these companies get in the stock market whenever they do a round of layoffs indicates the market cap is justified by what you would expect.
- renegade-otter 3y agoExactly. VCs want to see growth by watching double the engineering headcount on every subsequent visit. It's ALL about optics and burning money for show. But the party is ending. I have seen it first-hand - company opening a new floor to show growth, but it was half-empty. They are laying off people this week.