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They don't only reduce cost, but by shutting down products also lose revenue.



Those products don't make any meaningful amounts of revenue. That's going to be a rounding error.


Still the maths not necessarily goes the way the GP posted. They won't necessarily become net positive.


It's more likely they won't become profitable because they overestimated how much they'll save - not because they underestimated how much they'll lose.


But products cost money to run and maintain - isn't it perfectly plausible they were able to identify 20% of the people worked on a set of products that were in totality not profitable or even costing money?

Given the nature of branching from your core competencies into dice rolls, that sounds not just plausible to me, but even probable. Maybe I am missing something though.


Well, they have the financials but the products that were shut down were the most unprofitable ventures?


But how much revenue do they actually make from games and drones?




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