Earlier quoted context omitted.
The infrastructure isn't that much is the problem , because labor costs are the largest single expense. When you take that off the table as something that can be cut, you're then stuck needing to make up the difference from the things that never cost that much to begin with, which means the cuts you have to make to them to make up the same amount of shortfall are deep. > If they were paying each employee 10x as much…
Labor expenses can still be cut. Just not by screwing up wages. A union doesn't force you to keep the same number of employees forever. And if there's any meaningful shortfall it's literally impossible to get there with infrastructure cuts. Nobody sane would try it, since the target would be negative one thousand percent costs.
> And if there's any meaningful shortfall it's literally impossible to get there with infrastructure cuts. Nobody sane would try it, since the target would be negative one thousand percent costs.
You can't make up a $35M shortfall exclusively from cutting infrastructure when you're only spending $3.5M on infrastructure, but you also can't make up a $35M shortfall by not cutting anything. And you can make up some of it from cutting infrastructure, so where does the money come from that didn't come from reducing headcount?