Nick Perry argues that roughly the square root of a company's headcount does half the work, while 65% of managers at profitable firms actually make things worse. He uses Twitter's 85% layoff under Elon Musk to show how cutting excess staff can boost profitability when core contributors drive results.
65% of managers at profitable, well-run companies actually make the company worse. But the business survives because of a rule most people have never heard of. See, the square root of the people in any company do half the work. So, in a company of 10,000, 100 people do half of everything, which means the other 9,900 are splitting the rest, and a lot of them are just there. Which is why Musk fired 85% of Twitter, And instead of collapsing, profit went up because a company runs on the handful of people who actually move things, not the people with the titles. And everybody else is just standing close to them. So when you're the one staying late while 3 people on your team haven't shipped anything in a month, that's the math working exactly like it always does. Follow me for more on how companies really run.
