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Re:The other kind of staff software engineer by pgodzin on Friday May 13, 2022 @12:41PM (#31369792)
> Obviously, a rational CEO would see $1m cost savings the same as a $1m gain in profits

This is generally incorrect, especially at SaaS companies where revenue is recurring. It's very likely that you'll see much of that $1m gain again in future years, possibly even growing, while cost savings are hard to repeat consistently without impacting future growth.

Re:The other kind of staff software engineer by Brystephor on Friday May 13, 2022 @01:20PM (#31370278)
If you save $500k this year by optimizing some pattern or behavior (eg infrastructure) then why wouldn't that $500k also be saved the next year? You're right if it's a one-time cut (eg no free snacks this year) but most savings are going to be on things that happen more than once.
Re:The other kind of staff software engineer by pgodzin on Friday May 13, 2022 @03:24PM (#31371601)
Agree on things like infrastructure optimization. Most significant savings happen on people costs though, and layoffs/hiring freezes tend to not last forever, and also have impacts on future growth as well.

Compared to the same amount of revenue offering, most top SaaS companies have >100% net dollar retention, which means that their existing contracts tend to grow year-over-year from usage/upsells, so the long-term value of that $1m in revenue increases over time.

Re:The other kind of staff software engineer by ncmncm on Friday May 13, 2022 @05:44PM (#31372834)
Cost savings we count are usually recurring in the same way.
Re:The other kind of staff software engineer by whimsicalism on Friday May 13, 2022 @03:18PM (#31371531)
that makes no sense at all