I'm oversimplifying it horrendously with dumb math, but this is how I think of it:
Let's say you're trying to build a product/feature. You have general timelines for the launch. About 5 years ago, it would take a team of 10 to deliver it. Now, let's assume there were productivity gains, and you can deliver it with a team of 8.
This would not necessarily be a problem if for 20% of the workforce cut, you would also start getting investments and create 20% more companies/features. The big uncertainty is, will this ever happen, or it'll end up with 10% increment in such activities, so you still have that extra person hanging around.
Let's say you're trying to build a product/feature. You have general timelines for the launch. About 5 years ago, it would take a team of 10 to deliver it. Now, let's assume there were productivity gains, and you can deliver it with a team of 8.
This would not necessarily be a problem if for 20% of the workforce cut, you would also start getting investments and create 20% more companies/features. The big uncertainty is, will this ever happen, or it'll end up with 10% increment in such activities, so you still have that extra person hanging around.