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The goal of these cost cutting initiatives is not an absolute reduction in cost, but a relative one. They needed to show an improvement in operating margin, ie % of revenue spent on engineers.

If your engineers become 20% more efficient then your margins are better and your problem is solved. (Indeed if you have tech that can make any engineer 20% more efficient then you are back in the game of hiring as many as you can find, as long as each added engineer brings in enough additional revenue.)



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