Gurley advises against small layoffs of five or ten percent because they cause cultural pain without meaningful financial gain.
“One piece of advice though is never do a five or 10% layoff because it doesn't create any meaningful gain, yet you go through all the excruciating cultural pain.”
Gurley argues ten percent layoffs are too small to meaningfully reduce burn rate.
“I read about someone doing a 10% layoff and you should never do 10 because it's not consequential enough to really affect your burn rate.”