Submitted by [deleted] t3_1223qcz in explainlikeimfive
phryan t1_jdprbck wrote
Reply to comment by segelnhoch3 in ELI5 How does a “website” have so many employees? by [deleted]
This will be unpopular but I'd say that having 2,000 employees that are easily disposed of is also a result of upper management of a startup not understanding how to staff a company.
​
For your example hardware can generally be outsourced, once an organization reaches the point that owning hardware is cheaper outsourcing services like HR/Payroll is still more effective. However startups are often run by inexperienced management that can't min/max. When times get tough they pull in a consulting firm that make some recommendations that end up with a few thousand layed off.
I'll add consulting firms are a waste of time, a google search and 60 minutes will give you the same advice as a consulting firm. And the consulting firm will charge $1 mill plus easily.
Viewing a single comment thread. View all comments