this post was submitted on 14 Jul 2024
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You legitimately don't need a lot of employees to make a good product or have a successful company.
I genuinely believe a lot of the bloat in modern companies comes from hiring people just to hire them, not because they add any significant value to either the company or customers.
I want to add to this that valve is also very clearly an anomaly in todays business environment. They are not striving for infinite growth but methodical, strategic steady growth.
That in my mind is how you grow a company, maximising returns for investors is a good idea only for the investors, it deviates the company from the objective which is providing a solution to a problem. It seems to me that Valve despite all the criticism it receives for the high fee on the sales of copies is doing a terrific job on resolving that problem. Also, extending the market to Linux is not a monetary driven decision at all, but it buys back the fidelity of many customers which gain a new feature without any repercussion on stock prices, which are non existent since there aren’t any investors to obey to. The hope is that Gabe will continue on this way and when the problem of passing the baton will present itself, it will be dealt with the future of the company and the industry at large in mind.
They're not beholden to investors, so the company can be exactly as big as Gabe thinks he can manage.
Prior to the mass layoffs of late, companies like Google and Facebook used to hire developers just so their competition could not.
The easiest way for a manager to justify a raise is to increase the headcount under them.