> But why wouldn’t they want to use the budget they already have for these newly more productive people and get even more work done overall?
For all the same reasons many companies are eager to cut labor costs whenever possible. There can be a variety of bottlenecks to scaling and it's often not as simple as hire more people to make more profit, even if you have extra capital available.
For all the same reasons many companies are eager to cut labor costs whenever possible. There can be a variety of bottlenecks to scaling and it's often not as simple as hire more people to make more profit, even if you have extra capital available.