5min chapter

Lenny's Podcast: Product | Growth | Career cover image

How to fire people with grace, work through fear, and nurture innovation | Matt Mochary (CEO coach)

Lenny's Podcast: Product | Growth | Career

CHAPTER

The Land of Layoffs Again

80% of costs in any tech company are payroll is humans. So if you're going to pair costs, you actually have to let go of humans. Almost every one of my companies did some on the low side of 5%. Within 60 days of each layoff, the CEO reported back to me. It's insane. I don't know how this happened, but the company is now operating better. We've had companies that have laid off 50% of the company and the results have been phenomenal.

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