Maybe. We would need to know more about what's going on internally to be able to definitively tell whether their actions make sense. For example, imagine that they have two sets of engineers, one here and one in Russia, with basically the same skill sets. It might well make sense to pitch one of those staffs and consolidate. Alternately, maybe their conclusion is that they don't really need much more coding work-- that if they cut costs, their current revenue stream will make them profitable. And assume that they also think that charging more for marginal users will actually destroy their community, thus causing the core users to defect as well. In that case, cutting personnel costs makes perfect sense, and charging more for the people who pay nothing would be highly counterproductive.
Or they could be doofuses. I'm not saying they're not, just that the decision to lay-off people while still offering some functions for free could be correct, even though it could be totally wrong.
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Date: 2009-01-06 08:39 pm (UTC)Or they could be doofuses. I'm not saying they're not, just that the decision to lay-off people while still offering some functions for free could be correct, even though it could be totally wrong.