Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Recruiting employees is a sunk cost. There is a concept that it is a fallacy to maintain the cost because so much has already been spent- in other words, "throwing good money after bad".

In this particular case, GP posits that fallacy is itself a fallacy, insomuch as there is no greater opportunity the company could pursue which required laying those employees off. The reputational harm done, among other things, is a hidden cost not reflected in the numbers of their salaries, and surely they could have participated in other R&D efforts, or something along those lines.



Consider applying for YC's Summer 2026 batch! Applications are open till May 4

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: